Chapter 25 Aggregate Demand And Supply Analysis
Chapter 25Aggregate Demand and Supply AnalysisTMultiple Choice1)The aggregate demand curve is(a) the total quantity of an economy’s intermediate goods demanded at all price levels.(b) the total quantity of an economy’s intermediate goods demanded at a particular price level.(c) the total quantity of an economy’s final goods and services demanded at a particular price level.(d) the total quantity of an economy’s final goods and services demanded at different price levels.(e) none of the above.Answer: DQuestion Status: New2)The total quantity of an economy’s final goods and services demanded at different price levels is(a) the aggregate supply curve.(b) the aggregate demand curve.(c) the Phillips curve.(d) the aggregate expenditure function.(e) both (b) and (d) of the above.Answer: BQuestion Status: New3)The aggregate supply curve is(a) the total quantity of raw materials offered for sale at different prices.(b) the total quantity of final goods and services offered for sale at the current price level.(c) the total quantity of final goods and services offered for sale at different price levels.(d) the total quantity of intermediate and final goods and service offered for sale at different pricelevels.(e) the total quantity of final services offered for sale at different price levels.Answer: CQuestion Status: New
Chapter 254)Aggregate Demand and Supply AnalysisThe total quantity of final goods and services offered for sale at different price levels is(a) the aggregate supply curve.(b) the aggregate demand curve.(c) the Phillips curve.(d) the 45 line.(e) both (a) and (d) of the above.Answer: AQuestion Status: New5)In Friedman’s modern quantity theory, changes in the money supply are(a) unrelated to changes in the price level.(b) unrelated to changes in inflation.(c) unrelated to shifts in the aggregate demand curve.(d) the primary source of changes in aggregate spending.Answer: DQuestion Status: Previous Edition6)Friedman’s modern quantity theory of money concludes that changes in aggregate spending areprimarily determined by changes in(a) government spending and taxes.(b) the velocity of money.(c) interest rates.(d) the money supply.Answer: DQuestion Status: Previous Edition7)The average number of times per year that a dollar is spent on final goods and services is called(a) velocity.(b) acceleration.(c) the equation of exchange.(d) none of the above.Answer: AQuestion Status: Previous Edition8)The modern quantity theory of money is derived from(a) the concept of velocity.(b) the Keynesian monetary transmission mechanism.(c) the equation of exchange.(d) all of the above.Answer: CQuestion Status: Previous Edition901
9029)Frederic S. Mishkin Economics of Money, Banking, and Financial Markets, Seventh EditionMonetarists determine the aggregate demand curve from(a) the equation of exchange.(b) its three component parts: consumer expenditure, investment spending, and governmentspending.(c) its four component parts: consumer expenditure, investment spending, government spending,and net exports.(d) the spending multiplier.Answer: AQuestion Status: Previous Edition10)The aggregate demand curve slopes downward because a decrease in the price level meansa(n) in the real money supply and therefore a level of real spending.(a) increase; higher(b) increase; lower(c) decrease; lower(d) decrease; higherAnswer: AQuestion Status: Previous Edition11)According to the monetarists an increase in the money supply, other things equal, shifts theaggregate curve to the .(a) demand; right(b) demand; left(c) supply; left(d) supply; rightAnswer: AQuestion Status: Previous Edition12)According to monetarists, a decline in the money supply, holding other factors constant, shifts theaggregate curve to the .(a) demand; right(b) demand; left(c) supply; right(d) supply; leftAnswer: BQuestion Status: Previous Edition13)Keynesians analyze aggregate demand in terms of its four component parts:(a) consumer expenditures, planned investment spending, government spending, and net exports.(b) consumer expenditures, actual investment spending, government spending, and net exports.(c) consumer expenditures, planned investment spending, government spending, and gross exports.(d) consumer expenditures, planned investment spending, government spending, and taxes.Answer: AQuestion Status: Previous Edition
Chapter 2514)Aggregate Demand and Supply Analysis903The Keynesian analysis of aggregate demand indicates that a decline in the price level causes(a) a decline in the real money supply, an increase in interest rates, a decline in investmentspending, and a decline in aggregate output demanded.(b) a decline in the real money supply, a decline in interest rates, an increase in investmentspending, and an increase in aggregate output demanded.(c) an increase in the real money supply, a decline in interest rates, an increase in investmentspending, and an increase in aggregate output demanded.(d) an increase in the real money supply, an increase in interest rates, a decline in investmentspending, and a decline in aggregate output demanded.Answer: CQuestion Status: Previous Edition15)The aggregate demand curve is downward sloping because(a) a lower price level, holding the nominal quantity of money constant, leads to a larger quantity ofmoney in real terms, causes the interest rate to fall, and stimulates planned investment spending.(b) a lower price level, holding the nominal quantity of money constant, leads to a larger quantity ofmoney in nominal terms, causes the interest rate to rise, and stimulates planned investmentspending.(c) a higher price level, holding the nominal quantity of money constant, leads to a larger quantityof money in real terms, causes the interest rate to fall, and stimulates planned investmentspending.(d) a higher price level, holding the nominal quantity of money constant, leads to a smaller quantityof money in real terms, causes the interest rate to fall, and stimulates planned investmentspending.Answer: AQuestion Status: Previous Edition16)The aggregate demand curve is downward sloping because(a) a lower price level leads to a larger quantity of money in real terms, causing the interest rate torise, lowering the value of the dollar, and raising net exports.(b) a lower price level leads to a larger quantity of money in real terms, causing the interest rate tofall, lowering the value of the dollar, and raising net exports.(c) a higher price level leads to a smaller quantity of money in real terms, causing the interest rate torise, lowering the value of the dollar, and raising net exports.(d) a higher price level leads to a smaller quantity of money in real terms, causing the interest rate torise, raising the value of the dollar, and raising net exports.Answer: BQuestion Status: Previous Edition
90417)Frederic S. Mishkin Economics of Money, Banking, and Financial Markets, Seventh EditionThe aggregate demand curve is downward sloping because(a) a lower price level, holding the nominal quantity of money constant, leads to a larger quantity ofmoney in real terms, causes the interest rate to fall, and stimulates planned investment spending.(b) a lower price level leads to a larger quantity of money in real terms, causing the interest rate tofall, lowering the value of the dollar, and raising net exports.(c) a higher price level, holding the nominal quantity of money constant, leads to a smaller quantityof money in real terms, causes the interest rate to fall, and stimulates planned investmentspending.(d) of both (a) and (b) of the above.(e) of both (b) and (c) of the above.Answer: DQuestion Status: Previous Edition18)Keynesians contend that a price level the real quantity of money, higherspending.(a) lower; expands; encouraging(b) lower; expands; discouraging(c) lower; contracts; discouraging(d) higher; expands; encouraging(e) higher; expands; discouragingAnswer: AQuestion Status: Study Guide19)The Keynesian analysis of aggregate demand indicates that changes in the money supply(a) have no effect on aggregate demand.(b) shift the aggregate demand curve in the opposite direction of the change in governmentspending.(c) shift the aggregate demand curve in the same direction as the change in government spending.(d) move the economy along the aggregate demand curve rather than shifting it.Answer: CQuestion Status: Revised20)According to the Keynesians, an increase in government spending, other things equal, shifts theaggregate curve to the .(a) demand; right(b) demand; left(c) supply; left(d) supply; rightAnswer: AQuestion Status: Previous Edition
Chapter 2521)Aggregate Demand and Supply Analysis905According to the Keynesians, a decrease in government spending, other things equal, shifts theaggregate curve to the .(a) demand; right(b) demand; left(c) supply; left(d) supply; rightAnswer: BQuestion Status: Previous Edition22)According to the Keynesians, an increase in taxes, other things equal, shifts the aggregatecurve to the .(a) demand; right(b) demand; left(c) supply; left(d) supply, rightAnswer: BQuestion Status: Previous Edition23)The Keynesian analysis of aggregate demand indicates that a change in taxes(a) shifts the aggregate demand curve in the same direction as the change in government spending.(b) shifts the aggregate demand curve in the direction opposite to that of the change in governmentspending.(c) moves the economy along the aggregate demand curve rather than shifting it.(d) has no effect on aggregate demand.Answer: BQuestion Status: Revised24)According to the Keynesians, an increase in net exports, other things equal, shifts theaggregate curve to the .(a) demand; right(b) demand; left(c) supply; left(d) supply; rightAnswer: AQuestion Status: Previous Edition25)According to the Keynesians, a decrease in net exports, other things equal, shifts the aggregatecurve to the .(a) demand; right(b) demand; left(c) supply; left(d) supply; rightAnswer: BQuestion Status: Previous Edition
90626)Frederic S. Mishkin Economics of Money, Banking, and Financial Markets, Seventh EditionThe Keynesian analysis of aggregate demand indicates that a change in net exports(a) shifts the aggregate demand curve in the same direction as the change in government spending.(b) shifts the aggregate demand curve in the direction opposite of the change in governmentspending.(c) moves the economy along the aggregate demand curve rather than shifting it.(d) has no effect on aggregate demand.Answer: AQuestion Status: Revised27)The Keynesian analysis of aggregate demand indicates that a change in “animal spirits”(a) shifts the aggregate demand curve in the same direction as the change in government spending.(b) shifts the aggregate demand curve in the direction opposite to that of the change in governmentspending.(c) moves the economy along the aggregate demand curve rather than shifting it.(d) has no effect on aggregate demand.Answer: AQuestion Status: Revised28)According to the Keynesian view of aggregate demand(a) an increase in the money supply lowers interest rates and stimulates planned investmentspending.(b) changes in government spending and taxes, and net exports are important sources of shifts in theaggregate demand curve.(c) changes in consumer or business optimism can also shift the aggregate demand curve.(d) all of the above are true.Answer: DQuestion Status: Previous Edition29)According to the Keynesian view of aggregate demand(a) an increase in the money supply lowers interest rates and stimulates planned investmentspending.(b) changes in government spending and taxes, and net exports are important sources of shifts in theaggregate demand curve.(c) changes in consumer or business optimism can also shift the aggregate demand curve.(d) all of the above are true.Answer: DQuestion Status: Previous Edition30)According to the Keynesian view of aggregate demand(a) an increase in the money supply does not shift the aggregate demand curve.(b) changes in government spending and taxes, and net exports are important sources of shifts in theaggregate demand curve.(c) changes in consumer or business optimism are not independent sources of shifts in the aggregatedemand curve.(d) all of the above are true.Answer: BQuestion Status: Previous Edition
Chapter 2531)Aggregate Demand and Supply AnalysisKeynesians believe that(a) the aggregate demand curve is downward-sloping.(b) a change in the quantity of money causes the aggregate demand curve to shift.(c) changes in government spending and taxes do not cause the aggregate demand curve to shift.(d) all of the above.(e) only (a) and (b) of the above.Answer: EQuestion Status: Previous Edition32)Keynesians believe that(a) the aggregate demand curve is downward-sloping.(b) a change in the quantity of money causes the aggregate demand curve to shift.(c) changes in government spending and taxes cause the aggregate demand curve to shift.(d) all of the above.(e) only (a) and (b) of the above.Answer: DQuestion Status: Previous Edition33)Keynesians believe that(a) the aggregate demand curve is downward-sloping.(b) changes in government spending and taxes cause the aggregate demand curve to shift.(c) a change in the quantity of money does not cause the aggregate demand curve to shift.(d) all of the above.(e) only (a) and (b) of the above.Answer: EQuestion Status: Previous Edition34)Keynesians believe all of the following except that(a) the aggregate demand curve is downward-sloping.(b) changes in government spending and taxes cause the aggregate demand curve to shift.(c) a change in the quantity of money does not cause the aggregate demand curve to shift.(d) none of the above.Answer: CQuestion Status: Previous Edition35)Keynesians believe all of the following except that(a) the Federal Reserve should follow a monetary growth rule.(b) a change in the quantity of money does not cause the aggregate demand curve to shift.(c) the aggregate demand curve is downward-sloping.(d) both (a) and (b) of the above.Answer: DQuestion Status: Previous Edition907
90836)Frederic S. Mishkin Economics of Money, Banking, and Financial Markets, Seventh EditionKeynesians believe all of the following except that(a) the Federal Reserve should follow a monetary growth rule.(b) a change in the quantity of money causes the aggregate demand curve to shift.(c) the aggregate demand curve is downward-sloping.(d) both (a) and (b) of the above.Answer: AQuestion Status: Previous Edition37)Keynesians believe(a) that changes in government spending and taxes cause the aggregate demand curve to shift.(b) that changes in consumer and business willingness to spend can not cause the aggregate demandcurve to shift.(c) that changes in the money supply can not cause the aggregate demand curve to shift.(d) all of the above.Answer: AQuestion Status: Previous Edition38)The aggregate demand curve shifts to the right when(a) taxes are cut.(b) government spending is reduced.(c) animal spirits decrease.(d) the money supply is reduced.(e) all of the above.Answer: AQuestion Status: New39)The aggregate demand curve shifts to the right when(a) the money supply increases.(b) net exports increase.(c) taxes are increased.(d) all of the above.(e) both (a) and (b) of the above.Answer: EQuestion Status: New40)The aggregate demand curve increases when(a) net exports decrease.(b) taxes increase.(c) animal spirits increase.(d) all of the above.(e) both (b) and (c) of the above.Answer: CQuestion Status: New
Chapter 2541)Aggregate Demand and Supply AnalysisThe aggregate demand curve decreases when(a) government spending is decreased.(b) net exports decline.(c) taxes are increased.(d) all of the above.(e) both (a) and (b) of the above.Answer: DQuestion Status: New42)The aggregate demand curve shifts to the left when(a) the money supply falls.(b) the price level increases.(c) taxes are increased.(d) all of the above.(e) both (b) and (c) of the above.Answer: CQuestion Status: New43)Which of the following does not cause the aggregate demand curve to shift to the right?(a) An increase in net exports(b) An increase in government spending(c) An increase in taxes(d) An increase in consumer optimism(e) An increase in the money supplyAnswer: CQuestion Status: Previous Edition44)Which of the following does not cause the aggregate demand curve to shift to the left?(a) A decrease in net exports(b) A decrease in government spending(c) A decrease in taxes(d) A decrease in consumer optimism(e) A decrease in the money supplyAnswer: CQuestion Status: Previous Edition45)Which of the following does not cause the aggregate demand curve to shift to the left?(a) A decrease in net exports(b) A decrease in government spending(c) A decrease in taxes(d) A decrease in business optimism(e) A decrease in the money supplyAnswer: CQuestion Status: Revised909
91046)Frederic S. Mishkin Economics of Money, Banking, and Financial Markets, Seventh EditionA movement up a given aggregate demand curve is the result of(a) a rising price level.(b) a rising money supply.(c) increased taxes.(d) all of the above.(e) both (a) and (b) of the above.Answer: AQuestion Status: New47)A movement down an aggregate demand curve results from(a) a decrease in the level of prices.(b) an increase in the money supply.(c) a negative supply shock.(d) all of the above.(e) both (a) and (b) of the above.Answer: AQuestion Status: New48)“Crowding out” refers to a decrease in(a) the price level caused by a beneficial supply shock.(b) investment spending caused by an increase in the interest rate.(c) excess reserves caused by a currency drain.(d) excess reserves caused by an increase in reserve requirements.Answer: BQuestion Status: Previous Edition49)question the effectiveness of policy in changing aggregate , since they believethat crowding out of investment will be nearly complete.(a) Keynesians; fiscal; demand(b) Keynesians; monetary; demand(c) Monetarists; monetary; demand(d) Monetarists; fiscal; demand(e) Monetarists; monetary; supplyAnswer: DQuestion Status: Study Guide50)Monetarists believe that(a) the aggregate demand curve is downward-sloping.(b) a change in the quantity of money causes the aggregate demand curve to shift.(c) changes in government spending and taxes do not cause the aggregate demand curve to shift.(d) all of the above.Answer: DQuestion Status: Previous Edition
Chapter 2551)Aggregate Demand and Supply Analysis911Monetarists believe that(a) the aggregate demand curve is downward-sloping.(b) a change in the quantity of money causes the aggregate demand curve to shift.(c) changes in government spending and taxes cause the aggregate demand curve to shift.(d) all of the above.(e) only (a) and (b) of the above.Answer: EQuestion Status: Previous Edition52)While both monetarists and Keynesians view the aggregate demand curve as downward-sloping,monetarists argue that(a) changes in government spending and taxes are the only factors causing the aggregate demandcurve to shift.(b) a change in the quantity of money is the primary factor causing the aggregate demand curve toshift.(c) changes in government spending and taxes, in addition to changes in the money supply, causethe aggregate demand curve to shift.(d) a change in the quantity of money will have no effect on the aggregate demand curve.Answer: BQuestion Status: Previous Edition53)Although contend that an increase in government spending will “crowd out” privatespending, contend that only partial crowding out occurs.(a) Keynesians; monetarists(b) Keynesians; Hicksians(c) monetarists; Keynesians(d) monetarists; HicksiansAnswer: CQuestion Status: Previous Edition54)Keynesians argue that if crowding out does occur, it will be(a) incomplete.(b) complete.(c) temporary.(d) none of the above.Answer: AQuestion Status: Previous Edition
91255)Frederic S. Mishkin Economics of Money, Banking, and Financial Markets, Seventh EditionWh
Chapter 25 Aggregate Demand and Supply Analysis 901 4) The total quantity of final goods and services offered for sale at different price levels is (a) the aggregate supply curve. (b) the aggregate demand curve. (c)
Part One: Heir of Ash Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18 Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 Chapter 24 Chapter 25 Chapter 26 Chapter 27 Chapter 28 Chapter 29 Chapter 30 .
Chapter 13: Aggregate Demand and Aggregate Supply model A model that explains short-run fluctuations in real GDP and the price level. Aggregate demand curve shows the relationship between the price level and the quantity of real GDP demanded by households, firms, and the government. Short-run aggregate supply curve
In this chapter, look for the answers to these questions What are economic fluctuations? What are their characteristics? How does the model of aggregate demand and aggregate supply explain economic fluctuations? Why does the Aggregate-Demand curve slope downward? What shifts the AD curve? What is the slope of the Aggregate-Supply curve
Table 1.1 Demand Management (source: taken from Philip Kotler, Marketing Management, 11th edn, 2003, p. 6) Category of demand Marketing task 1 Negative demand Encourage demand 2 No demand Create demand 3 Latent demand Develop demand 4 Falling demand Revitalize demand 5 Irregular demand Synchronize demand 6 Full demand Maintain demand
Learning Objectives 1.Identify the determinants of aggregate demand and distinguish between a movement along the aggregate demand curve and a shift of the curve. 2.Identify the determinants of aggregate supply and distinguish between a movement along the short-run aggregate supply curve and a shift of the curve.
TO KILL A MOCKINGBIRD. Contents Dedication Epigraph Part One Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Part Two Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18. Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 Chapter 24 Chapter 25 Chapter 26
803.6 Aggregate for Plant Mix Wearing Course 655 803.7 Aggregate for Microsurfacing 656 803.8 Aggregate for Chip Seal 656 803.9 Aggregate for Blotter 657 803.10 Aggregate for Bed Course Material 658 803.11 Gravel for Drains 658 803.12 Aggregate for Maintenance Stockpiles 658 803.13 Aggregate for Pervious Backfill Material 660
DEDICATION PART ONE Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 PART TWO Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 18 Chapter 19 Chapter 20 Chapter 21 Chapter 22 Chapter 23 .
