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Straighterline Econ 104 Practice Quizzes Questions and Answers 2024/2025( A+ GRADED 100% VERIFIED).
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Straighterline Econ 104 Practice Quizzes Questions and Answers 2024/2025( A+ GRADED 100% VERIFIED).

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  • September 25, 2024
  • 7
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • a decrease in expected
  • straighterline econ 104 practice quizzes
  • which of the following will increase planned inves
  • a decrease in the price level will consu
  • a decrease in household wealth will consu

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  • Straighterline Econ 104 Practice
  • Straighterline Econ 104 Practice

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StraighterlineEcon 104 Practice Quizzes
Which of the following will increase planned investment spending on the part of​firms? - ANS
-Increased optimism about future demand for its product
-A lower real interest rate

A decrease in the price level will _________ consumption - ANS increase

A decrease in household wealth will ________ consumption - ANS decrease

A decrease in expected future income will _______ consumption - ANS decrease

A decrease in current disposable income will _______ consumption - ANS decrease

A decrease in the interest rate will _______ consumption - ANS increase

Indicate which of the following is correct about the multiplier effect - ANS -The multiplier ignores
the effect on real GDP of​imports, inflation, and interest rates.
-The larger the​MPC, the more additional consumption that occurs.
-A decrease in autonomous spending decreases real GDP by a multiple of the change.

The aggregate expenditure model can be written in terms of four spending categories. Which
equation shows the relationship between aggregate expenditure and the four spending​
categories? - ANS AE​= C​+ PI​+ G​+ NX

When the price level rises from 104 to​124, real GDP falls from​$5 trillion to​$4 trillion. What is a
possible explanation for this​event? - ANS -Falling exports
-Less investment
-Decreased consumption

The relationship between the marginal propensity to consume​(MPC) and the marginal
propensity to save​(MPS) can best be described as - ANS -MPC​+ MPS​= 1.
-MPS​= 1−MPC.
-MPC​= 1−MPS

We say that the economy as a whole is in macroeconomic equilibrium if - ANS -total spending
equals GDP.
-aggregate expenditure equals GDP.
-total spending equals total production.
-aggregate expenditure equals total production.

, When planned aggregate expenditure is less than real​GDP what happens to​firms' inventories?
- ANS When planned aggregate expenditure is less than real​GDP, as in the diagram to the​
right, what happens to​firms' inventories?

Reasons why the aggregate expenditures increase when the price level falls - ANS -A lower
U.S. price level relative to other countries increases net exports.A lower U.S. price level relative
to other countries increases net exports.
-Reduced demand for money at lower price levels reduces the interest rate and increases
investment.Reduced demand for money at lower price levels reduces the interest rate and
increases investment.
-The real value of household wealth rises with increasing consumption..

An increase in the U.S. price level relative to other​countries' price levels will _________ net
exports - ANS decrease

An increase in the growth rate of U.S. GDP relative to other​countries' will _________ net
exports - ANS decrease

An increase in the exchange rate between the dollar and other currencies will _________ net
exports - ANS decrease

1. Suppose that​initially, the economy is in​long-run macroeconomic equilibrium at point A. If
there is increased pessimism about the future of the​economy, the AD curve will shift
___________
2. The new​short-run macroeconomic equilibrium occurs at
3. Long-run adjustment will shift the SRAS curve from ______________ as workers adjust to​
lower-than-expected prices.
4. The new​long-run macroeconomic equilibrium occurs at - ANS 1. Left (AD0->AD1)
2. Intersection of AD1 and SEAS0
3. Right (SS0->SS1)
4. On the LRAS curve. Intersection AD1 and SRAS1

According to the dynamic​AD-AS model, what is the most common cause of​inflation? - ANS
-AD increases by more than LRAS
-Total spending increases faster than total production

Why does the​short-run aggregate supply curve​(SRAS) slope​upward? - ANS -Firms and
workers fail to predict changes in the price level.
-Prices of final goods rise more quickly than the prices of inputs.
-Contracts keep wages​"sticky".

The effect of an unexpected increase in the price of oil - ANS Shifts SRAS to the left

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