1.With time, an appreciation in the value of the nation's currency in the foreign exchange market...
1.With time, an appreciation in the value of the nation's currency in the foreign exchange market would cause
A.the nation's imports to increase and exports to decline.
B.the nation's exports to increase and imports to decline.
C.both imports and exports to decline.
D.both imports and exports to rise.
2. The short-run aggregate supply curve:
A. has the same slope as the long-run aggregate supply curve (LRAS curve)
B. shifts only when the long-run aggregate supply curve (LRAS curve) shifts in the same direction.
C.normally slopes upward to the right because the costs of labor and other inputs are relatively fixed in the short run.
D. normally has a slope of zero, meaning the curve is horizontal.
3. A recession is most commonly caused by:
A. an increase in aggregate demand.
B. a decrease in aggregate demand.
C. an increase in aggregate supply.
D. a decrease in aggregate supply.
4. Along the long-run aggregate supply curve, the level of Real GDP supplied ____ with increases in the price level.
A. does not change
B.increases
C.decreases slightly
D. decreases dramatically
5. Starting from long run equilibrium, in response to a decrease in aggregate demand:
A. The price level will increase more in the long run than in the short run.
B. The short run equilibrium level of real output will be greater in the long run than in the short run.
C. Neither the price level nor real output will change in the long run.
6. The long-run aggregate supply curve (LRAS curve) is ____ with real output levels that ____.
A. upward sloping; vary positively with the price level
B. upward sloping; vary negatively with the price level
C. vertical; are equal to the natural level of real output at all price levels
D. vertical; can be either greater than or less than the natural level of real output
7. Real GDP in a small country is worth $8 billion. The population of the country is 200,000. What is per capita Real GDP?
A. $30,000
B.$40,000
C.$60,000
D.$300,000
Homework Answers
1. A.the nation's imports to increase and exports to
decline.
(Due to appreciation of currency, imports become cheaper and
exports become expensive.)
2. C.normally slopes upward to the right because the costs of
labor and other inputs are relatively fixed in the short run.
(SRAS is upward sloping because costs are fixed in the short
run.)
3. B. a decrease in aggregate demand.
(Decrease in AD cause recession.)
4. A. does not change
(LRAS is vertical so real GDP is fixed in the long run.)
(Note: As per Chegg's policy, 4 MCQs are to be answered at a time.)
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