seinaztre12em ‘Sonus Unt 6 Cupar 22: agro Dashboard / My courses / ECON 1580 WY2022-T1 / 7 October - 13 October /Self-Quiz Unit Started on Tuesday, 12 October 2021, 12.07 PM State Finished Completed on Tuesday, 12 October 2021, 12:11 PM ye taken 3 mins 53 secs Grade 10.00 out of 10.00 (100%) ut comes Potential output is Select one: a. the level of real GDP that exists when the economy is experiencing only cyclical and structural unemployment. the level of real GD? that exists when the quantity of labor supplied is equal to the quantity of labor demanded. ._ the level of real GDP that exists when the actual rate of unemployment is zero. ° d._ the level of real GDP that exists when the economy is experiencing only frictional and cyclical unemployment. esimapozle tumoduareven pp atarelS777SSkemc 258014 wtsevrazs, ream ‘Sonus Unt 6 Chapa 22: apt ro cussion comrecs Mark 100 out of 1.90 Exhibit: Figure 72 Leas =e 6 8 AD Boia 7 7 Pow 5 rua Real CDP pilibus of baseyear dolls) per year In this exhibit (Figure 7-2), changes in aggregate demand from AD; to either AD, or ADs Select one: vill change nominal GOP but will not change real GDP in the long run. v will change real GDP but will not change nominal GDP in the long run. b ‘will change the potential level of real GDP. 1d. will change the price level and real GDP. esimapozle tumoduareven pp atarelS777SSkemc 258014 ansevrazs, ream ‘Sonus Unt 6 Chapa 22: apt ro cussion 3 comrecs Mark 100 out of 1.90 Which of the following is a source of wage stickiness? | fixed wage contracts I minimum wage laws II workers and firms want to avoid complexity of negotiating contracts frequently Select one: a. Tonly b. Land Il only Land Il only d. Land i esimapozle tumoduareven pp atarelS777SSkemc 258014 ansevrazs, ream ‘Sonus Unt 6 Chapa 22: apt ro custon comrecs Mark 100 out of 1.90 All the following explain price stickiness except: Select one 2 firms choose not to adjust prices until they can assess if changes in sales are temporary or permanent b. the more firms produce, the lower the average cost of production. Therefore, frms are wiling not raise prices as long ¥ as they can sell more «firms may be concemed that consumers may be angered by price increases. 4. firms may be concerned that their rivals may not match ther pric increases. esimapozle tumoduareven pp atarelS777SSkemc 258014 ansevrazs, ream ‘Sonus Unt 6 Chapa 22: apt ro cussion 5 comrecs Mark 100 out of 1.90 Which of the following is an explanation for price stickiness? | There are adjustment costs associated with changing prices such as the cost of printing new price lists. Il Worker unions may forbid firms from raising prices for fear that workers may be laid off f demand for output falls IIL Firms may have explicit long-term contracts to sell their products to other firms at specified prices. Select one: a. Tonly b. Tand Il only Land Il only d. Land i v ° esimapozle tumoduareven pp atarelS777SSkemc 258014 onsevrazs, ream ‘Sonus Unt 6 Chapa 22: apt ro custion 6 comrecs Mark 100 out of 1.90 Using the aggregate demand-aggregate supply model, predict what happens in the short run when the federal government ‘enacts a cut in the personal income tax rates Select one: a. The aggregate supply curve shifts right the aggregate demand curve is not affected; price level decreases; real GDP increases. The aggregate supply curve shifts left; the aggregate demand curve is not affected; price level increases; real GDP decreases. The aggregate demand curve shifts right; the aggregate supply curve isnot affected: price level and real GDP. v The aggregate demand curve shifts left the aggregate supply curve is not affected; price level and real GDP decrease. esimapozle tumoduareven pp atarelS777SSkemc 258014 antsevrazs, ream ‘Sonus Unt 6 Chapa 22: apt ro cussion? comrecs Mark 100 out of 1.90 Inthe short-run, an output gap occurs because: Select one: a. there is insufficient demand for goods and services b. there is insufficient supply of goods and services. wages and prices are fully flexible. wages and some prices have not adjusted sufficiently to maintain output at its potential level v esimapozle tumoduareven pp atarelS777SSkemc 258014 mmsevrazs, ream ‘Sonus Unt 6 Chapa 22: apt ro cussion 8 comrecs Mark 100 out of 1.90 Real GDP per yer In this exhibit (Figure 7-7), at output level YK Select one: a. potential output is less than actual output. b. there is a surplus of real GDP. ©. the unemployment rate exceeds the natural rate of unemployment, 4. over time aggregate demand will rise to restore long-run equilibrium, esimapozle tumoduareven pp atarelS777SSkemc 258014sevrazs, ream ‘Sonus Unt 6 Chapa 22: apt ro cussion 9 comrecs Mark 100 out of 1.90 Exhibit: Figure 7-3 In this exhibit (Figure 7-3), suppose that the economy is in long-run equilibrium at point A. Now suppose the stack market ‘rashes, significantly reducing household wealth. Inthe short-run: Select one: a. the nominal wage rate falls, b. unemployment is above its natural level ¥ c_ there will be pressure on prices to rise, d the short-run aggregate supply curve shifts to the left as firms cut production. esimapozle tumoduareven pp atarelS777SSkemc 258014 ansevrazs, ream ‘Sonus Unt 6 Chapa 22: apt ro cussion 10 comrecs Mark 100 out of 1.90 Exhibie: Figure 7-7 Real GDP per yer In this exhibit (Figure 7-7), suppose the economy is initially at K. Which of the following statements best explains how the ‘economy responds to restore long-run macroeconomic equilibrium? Select one: closed. ‘Over time, the aggregate demand curve will shift to the right until long-run equilibrium is restored at J and the gap Te] b. Rising unemployment puts pressure on nominal wages to fall. he SRAS curve shifts right to SRAS; closing the gap at H. In response to rising prices, firms will increase production moving along SRAS2 until long-run equilibrium is restored at J ssimapocle tumodguarevin pital S777SSKemce 258014 vonseins, re12em ‘Sonus Unt 6 Cupar 22: agro and the gap is closed. dd. Rising unemployment puts pressure on nominal wages to fal, Firms employ more workers moving along SRAS2 until long-run equilibrium is restored at J and the gap is closed Written Assignment Unit 6 Jump to. Graded Quiz Unit 6 = esimapozle tumoduareven pp atarelS777SSkemc 258014 tant