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Issues in Economics Today by Robert Guell 8th Edition- Test Bank

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  • ISBN-10 ‏ : ‎ 1259746399
  • ISBN-13 ‏ : ‎ 978-1259746390

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SKU:tb1002655

Issues in Economics Today by Robert Guell 8th Edition- Test Bank

Chapter 08

Multiple Choice

 

1. The interest rate effect, the real balance effect and the foreign purchases effect suggests that the aggregate demand curve is
A) downward sloping.
B) horizontal.
C) vertical.
D) shaped as a backward L.

Answer: A
Learning Objective: 08-01
Topic: Aggregate Demand
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy

2. The Keynesian, Classical and Intermediate ranges apply to the
A) shape of the individual market supply curve.
B) the slope of the individual market demand curve.
C) the shape of the aggregate supply curve.
D) the slope of the aggregate demand curve.

Answer: C
Learning Objective: 08-02
Topic: Aggregate Supply
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy

3. The aggregate supply-aggregate demand diagram models
A) the behavior of individual consumers.
B) the behavior of individual firms.
C) the economy as a whole.
D) the interaction of producers and consumers for a particular good or service.

Answer: C
Learning Objective: 08-01
Topic: Shifts in Aggregate Demand and Aggregate Supply
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy

4. The aggregate supply-aggregate demand diagram relates various levels of
A) production of two different goods.
B) all prices as measured by the CPI and production as measured by real GDP.
C) imports and exports of goods against exchange rates.
D) the price and quantity of a particular good.

Answer: B
Learning Objective: 08-01
Topic: Shifts in Aggregate Demand and Aggregate Supply
Blooms: Remember
AACSB: Analytical Thinking
Difficulty: 1 Easy

5. The rationale for interest rates determining AD is with lower interest rates
A) firms will borrow more to invest.
B) consumers will borrow less to buy durables.
C) consumers will borrow more to buy durables.
D) firms will borrow more to invest and consumers will borrow more to buy durables.

Answer: D
Learning Objective: 08-02
Topic: Aggregate Demand
Blooms: Understand
AACSB: Analytical Thinking
Difficulty: 1 Easy

6. The rationale for exchange rates determining AD is with
A) stronger dollar exports will fall AD will rise
B) stronger dollar imports will fall AD will rise.
C) weaker dollar exports will fall AD will rise.
D) weaker dollar imports will fall AD will rise.

Answer: D
Learning Objective: 08-02
Topic: Aggregate Demand
Blooms: Understand
AACSB: Analytical Thinking
Difficulty: 1 Easy

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