1. The aggregate supply curve
relates real output to the price level.
relates nominal output to the price level.
relates real output to the level of consumer spending.
is the sum of all market supply curves.
is not related to real output.
2. Who is NOT a loser in inflation?
people on fixed incomes
people who hold real assets
the government
both people who hold real assets and the government
both people on fixed incomes and people who hold real assets
3. A country is in a recession if
nominal output declines for two successive quarters.
real output declines for two successive quarters.
unemployment rises in two successive quarters.
the price level falls in two successive quarters.
the Dow Jones Index declines by more than 10 percent.
4. Which of the following is a result of slow economic growth?
Increasing tax revenues
increasing levels of pollution
higher unemployment rates
political tranquility
5. The labor force is composed of
everyone over 16 years of age.
only those who are currently working.
those who are working and those who are seeking work.
all those between 16 and 65.
those who are working and those who have stopped looking for work.
6. If taxes increase and the AS curve is upward sloping, then
output falls and the price level falls.
output increases and the price level increases.
output falls and the price level increases.
output increases and the price level falls.
output may increase or decrease but the price level will increase.
7. An increase in the money supply
will shift aggregate demand to the left.
will shift aggregate demand to the right.
will shift aggregate supply to the right.
will shift aggregate supply to the left.
will have no effect on either aggregate supply or aggregate demand.
8. The curve that shows quantities of total real output that will be offered for sale at various price levels is called the
aggregate demand curve.
real gross domestic investment curve.
aggregate supply curve.
yield curve.
aggregate individual demand curve.
9. The value of net exports is a positive number in the national income accounts when
capital consumption exceeds net investment.
exports exceed imports.
imports exceed exports.
national income exceeds personal income.
net investment exceeds capital consumption.
10. The transfer of funds from savers to business investors takes place in the
product market.
goods market.
business market.
credit market.