Online Test Ch. 11 Quiz

10 Questions

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True and false review questions over Ch 11 of McConnell and Brue.   I hope you are happy now.   There are more than ten questions in this quiz, so take it again to see new questions.


Questions and Answers
  • 1. 
    The aggregate demand-aggregate supply model is a variable-price-level model that permits analysis of simultaneous changes in real GDP and the price level.
    • A. 

      True

    • B. 

      False

  • 2. 
    The aggregate demand curve slopes downward.
    • A. 

      True

    • B. 

      False

  • 3. 
    A fall in the price level increases the real value of financial assests with fixed money values and, as a result, increases spending by the holders of these assets.
    • A. 

      True

    • B. 

      False

  • 4. 
    A fall in the price level reduces the demand for money in the economy and drives interest rates upward.
    • A. 

      True

    • B. 

      False

  • 5. 
    A rise in the price level of an economy (relative to the foreign price levels) tends to increase that economy's exports and to reduce its imports of goods and services.
    • A. 

      True

    • B. 

      False

  • 6. 
    The higher the price level, the smaller the wealth of consumers and the lower the consumption schedule.
    • A. 

      True

    • B. 

      False

  • 7. 
    A change in AD is caused by a change in the price level, other things equal.
    • A. 

      True

    • B. 

      False

  • 8. 
    A fall in excess capacity, or unused existing capital goods, will retard the demand for new capital goods, and therefore reduce AD.
    • A. 

      True

    • B. 

      False

  • 9. 
    The real balances effect is one of the determinants of AD.
    • A. 

      True

    • B. 

      False

  • 10. 
    A high level of household indebtedness will tend to increase consumption spending and AD.
    • A. 

      True

    • B. 

      False