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Chap 05 - 10ce - Macro-26-30
Chap 05 - 10ce - Macro-26-30
Chap 05 - 10ce - Macro-26-30
Which is the
exception?
85) What effect will an increase in the Canadian price level have on trade?
86) What is the domestic effect of an increase in the incomes of a country's major
international trading partners?
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A) The aggregate demand curve will shift to the right.
B) The aggregate demand curve will shift to the left.
C) The aggregate supply curve will shift to the right.
D) The aggregate supply curve will shift to the left.
87) What is the slope of the aggregate supply curve, according to neoclassical economists?
88)
Refer to the figure above to answer this question. If the economy was initially at point a, then
what would a movement to point b suggest?
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A) The movement could be the result of an increase in aggregate demand.
B) The movement could be the result of a decrease in prices.
C) The movement could be the result of a decrease in wages.
D) It is a movement from one full-employment level of Real GDP to another.
E) The movement could be the result of expansionary monetary policy.
90) Which of the following will provide a macroeconomy with prospects for sustained
growth in the future?
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92) Which of the following will most likely lead to long-term economic growth?
94) Which of the following is the result of the price level increasing while resource costs
remain constant?
95) Explain how the substitution effect will affect aggregate demand when the price level
decreases.
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A) The substitution effect will cause aggregate demand to increase.
B) The substitution effect will cause aggregate demand to decrease.
C) There is no substitution effect as there's no substitute for all goods.
D) There's no substitution effect if incomes are also rising.
E) There is a substitution effect that is smaller than the income effect, so it's uncertain
what will happen to aggregate demand.
A) Workers are better able to negotiate a wage increase when the price level increases.
B) Nominal interest rates will increase when the price level increases.
C) Consumption decreases because products are more expensive when the price level
increases.
D) Consumption decreases when the price level increases, because future prices are
expected to fall.
E) The real value of savings will decrease when the price level increases.
97) Which component of aggregate demand is most likely to change as a result of the
interest-rate effect?
A) Consumption.
B) Investment.
C) Government spending.
D) Exports.
E) Imports.
98) All of the following, except one, will shift the aggregate the demand to the right. Which
is the exception?
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