Economics Ps 9

24 Questions  I  By Blackcell_2020
Economics PS 9

  
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1.  According to the sticky-price model, other things being equal, the greater the proportion, s, of firms that follow the sticky-price rule, the ______ the ______ in output in response to an unexpected price increase.
A.
B.
C.
D.
2.  Each of the two models of short-run aggregate supply is based on some market imperfection. In the sticky-price model, the imperfection is that:
A.
B.
C.
D.
3.  In the sticky-price model, the relationship between output and the price level depends on:
A.
B.
C.
D.
4.  According to the sticky-price model, output will be at the natural level if:
A.
B.
C.
D.
5.  According to the sticky-price model, deviations of output from the natural level are _____ deviations of the price level from the expected price level.
A.
B.
C.
D.
6.  According to the imperfect-information model, when the price level rises and the producer expects the price level to rise, the producer:
A.
B.
C.
D.
7.  According to the imperfect-information model, when the price level falls but the producer did not expect it to fall, the producer:
A.
B.
C.
D.
8.  According to the imperfect-information model, when the price level is greater than the expected price level, output will _____ the natural level of output
A.
B.
C.
D.
9.  Both models of aggregate supply discussed in Chapter 12 imply that if the price level is higher than expected, then output ______ natural rate of output.
A.
B.
C.
D.
10.  Starting from the natural level of output, an unexpected monetary contraction will cause output and the price level to ______ in the short run, and in the long run the expected price level will ______, causing the level of output to return to the natural level.
A.
B.
C.
D.
11.  Along an aggregate supply curve, if the level of output is less than the natural level of output, then the price level is:
A.
B.
C.
D.
12.  Along any aggregate supply curve, there is only one:
A.
B.
C.
D.
13.  Which of the following will shift the aggregate supply curve up to the left?
A.
B.
C.
D.
14.  Use the following to answer questions 15-16: (Exhibit: AD-AS Shifts) Starting from long-run equilibrium at A with output equal to and the price level equal to P1, if there is an unexpected monetary expansion that shifts aggregate demand from AD1 to AD3, then the short-run nonneutrality of money is represented by the movement from:
A.
B.
C.
D.
15.  Use the following to answer questions 15-16: (Exhibit: AD-AS Shifts) Starting from long-run equilibrium at A with output equal to and the price level equal to P1, if there is an unexpected monetary expansion that shifts aggregate demand from AD1 to AD3, then the long-run neutrality of money is represented by the movement from:
A.
B.
C.
D.
16.  If the short-run aggregate supply curve is steep, the Phillips curve will be:
A.
B.
C.
D.
17.  Based on the Phillips curve, unexpected movements in inflation are related to ______ and based on the short-run aggregate supply curve, unexpected movements in the price level are related to ______.
A.
B.
C.
D.
18.  Inflation inertia is represented in the aggregate supply and aggregate demand model by continuing upward shifts in the:
A.
B.
C.
D.
19.  Use the following to answer questions 23-24: (Exhibit: AD-AS Shifts) Starting from long-run equilibrium at A with output equal to and the price level equal to P1, a cost-push inflation would be represented by a shift from:
A.
B.
C.
D.
20.  Use the following to answer questions 23-24: (Exhibit: AD-AS Shifts) Starting from long-run equilibrium at A with output equal to and the price level equal to P1, a demand-pull inflation would be represented by a shift from:
A.
B.
C.
D.
21.  The tradeoff between inflation and unemployment does not exist in the long run because people will adjust their expectations so that expected inflation:
A.
B.
C.
D.
22.  Use the following to answer questions 26-27: (Exhibit: Short-run Phillips Curves) As the short-run Phillips curve shifts from A to B to C to D, policymakers face:
A.
B.
C.
D.
23.  Use the following to answer questions 26-27: (Exhibit: Short-run Phillips Curves) As the short-run Phillips curve shifts from A to B to C to D:
A.
B.
C.
D.
24.  According to the natural-rate hypothesis, the levels of output and unemployment depend on:
A.
B.
C.
D.
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