View Attempt 1 of 2

Title: Quiz Four

Started: September 30, 2010 10:33 PM
Submitted: September 30, 2010 11:11 PM
Time spent: 00:38:06
Total score: 76/100 = 76% Total score adjusted by 0.0 Maximum possible score: 100
1. Chapter 29 #060
Answer the next question(s) based on the following list of factors that are related
to the aggregate demand curve.

Which of the above factors best explain the downward slope of aggregate
demand curve?

Student Correct
Value Feedback
Response Answer
A. 2, 4, and
6
B. 7, 9, and
10
C. 1, 3, and 100%
8
D. 4, 6, and
7
Score: 4/4

2. Chapter 29 #034
An increase in the real value of stock prices, which is independent of a change in
the price level, would best be an example of the:
 Student Correct
Value Feedback
Response Answer
A. Foreign
purchases
effect
B. Real-
balances
effect
C. Interest-
rate
effect
D. Wealth 100%
effect
Score: 4/4

3. Chapter 29 #019
One explanation for the downward slope of the aggregate demand curve is that a
change in the price level results in:

Student Correct
Value Feedback
Response Answer
A. A
multiplier
effect
B. An income
effect
C. A
substitution
effect
D. A real- 100%
balances
effect
Score: 4/4

4. Chapter 30 #007
Which group has a direct responsibility for providing analysis, advice and
assistance to the U.S. President on economic matters?

Student Correct
Value Feedback
Response Answer
 A. The
Congressional
Budget Office
B. The Council 100%
of Economic
Advisors
C. The Joint
Economic
Committee
D. The Federal
Reserve
Board
Score: 4/4

5. Chapter 29 #031
An expected rise in the rate of inflation for consumer goods will:

Student Correct
Value Feedback
Response Answer
A. Decrease
aggregate
demand
B. Increase
aggregate
supply
C. Increase 100%
aggregate
demand
D. Decrease
aggregate
supply
Score: 4/4

6. Chapter 30 #038
When government spending is increased, the amount of the increase in aggregate
demand primarily depends on:

Student Correct
Value Feedback
Response Answer
A. The
average
 propensity
to
consume
B. The size
of the
multiplier
C. Income 0%
taxes
D. Exchange
rates
Score: 0/4

7. Chapter 29 #026

Refer to the above graph, which shows an aggregate demand curve for a
hypothetical economy. If the economy is at point B and the domestic price level
declines by 50 points, then the:

Student Correct
Value Feedback
Response Answer
A. Real-
balances
effect
would
keep the
economy
at point B
B. Interest
rate
effect
 would
move the
economy
to point A
C. Foreign
purchases
effect
would
move the
economy
to point A
D. Foreign 100%
purchases
effect
would
move the
economy
to point C
Score: 4/4

8. Chapter 30 #023
In an aggregate demand and aggregate supply graph, a contractionary fiscal
policy can be illustrated by a:

Student Correct
Value Feedback
Response Answer
A. Leftward
shift in the
aggregate
demand
curve
B. Rightward 0%
shift in the
aggregate
demand
curve
C. Rightward
shift in the
aggregate
supply
curve
D. Movement
along an
 existing
aggregate
supply
curve
Score: 0/4

9. Chapter 29 #051
A shift in the aggregate demand curve would be caused by a change in:

Student Correct
Value Feedback
Response Answer
A. The
quantity of
real output
demanded
B. The price
level
C. An 0%
aggregate
demand
determinant
D. An
appreciation
in the value
of the U.S.
dollar
E. Aggregate
supply
Score: 0/4

10. Chapter 30 #010

If the Congress passes legislation to increase government spending to counter the
effects of a recession, then this would be an example of a(n):

Student Correct
Value Feedback
Response Answer
A. Supply-side
fiscal policy
B. Expansionary 100%
fiscal policy
C. Contractionary
 fiscal policy
D. Nondiscretionary
fiscal policy
Score: 4/4

11. Chapter 29 #005

A decline in the quantity of real output demanded along the aggregate demand
curve is a result of a(n):

Student Correct
Value Feedback
Response Answer
A. Decrease
in the
level of
income
B. Increase 100%
in the
price
level
C. Increase
in the
level of
income
D. Decrease
in the
price
level
Score: 4/4

12. Chapter 29 #029

An expected decline in the prices of consumer goods will:

Student Correct
Value Feedback
Response Answer
A. Decrease 100%
aggregate
demand
B. Increase
the
quantity
of real
 domestic
output
demanded
C. Increase
aggregate
demand
D. Decrease
the
quantity
of real
domestic
output
demanded
Score: 4/4

13. Chapter 29 #006

Which effect best explains the downward slope of the aggregate demand curve?

Student Correct
Value Feedback
Response Answer
A. A
multiplier
effect
B. An income
effect
C. A
substitution
effect
D. An interest 100%
rate effect
Score: 4/4

14. Chapter 30 #029

Refer to the above graph. A contractionary fiscal policy can best be represented
by a:

Student Correct
Value Feedback
Response Answer
A. Shift in 0%
the
aggregate
demand
curve
from AD1
to AD2
B. Shift in
the
aggregate
demand
curve
from AD3
to AD2
C. Shift in
the
aggregate
demand
curve
from AD1
to AD3
D. Movement
along the
aggregate
demand
curve
Score: 0/4
15. Chapter 30 #017
An expansionary fiscal policy can be illustrated by a(n):

Student Correct
Value Feedback
Response Answer
A. Change
in the
price
level
B. Increase 0%
in
aggregate
supply
C. Increase
in
aggregate
demand
D. Decrease
in
aggregate
demand
Score: 0/4

16. Chapter 30 #001

When the Federal government uses taxation and spending actions to stimulate the
economy it is conducting:

Student Correct
Value Feedback
Response Answer
A. Fiscal policy 100%
B. Incomes
policy
C. Monetary
policy
D. Employment
policy
Score: 4/4

17. Chapter 29 #040

 If the dollar appreciates in value relative to foreign currencies:

Student Correct
Value Feedback
Response Answer
A. Aggregate
demand
decreases
B. Aggregate
demand
increases
C. The
quantity
of real
domestic
output
demanded
increases
D. The 0%
quantity
of real
domestic
output
demanded
decreases
Score: 0/4

18. Chapter 29 #001

The aggregate demand curve is the relationship between the:

Student Correct
Value Feedback
Response Answer
A. Price level
and the
sales of
producers
B. Price level 100%
and the
purchasing
of real
domestic
output
C. Price level
and the
 distribution
of real
domestic
output
D. Real
domestic
output
bought and
the real
domestic
output sold
Score: 4/4

19. Chapter 30 #026

Refer to the above graph. The economy is at equilibrium at point B. What fiscal
policy would increase real GDP?

Student Correct
Value Feedback
Response Answer
A. Increase
aggregate
demand
from AD2
to AD1 by
decreasing
taxes
B. Decrease
aggregate
demand
from AD2
to AD3 by
 increasing
government
spending
C. Decrease
aggregate
demand
from AD2
to AD3 by
decreasing
government
spending
D. Increase 100%
aggregate
demand
from AD2
to AD3 by
decreasing
taxes
Score: 4/4

20. Chapter 30 #051

A government economist states that: "The collection of personal income tax
revenues automatically falls during a recession." This statement best describes
how the progressive income tax system:

Student Correct
Value Feedback
Response Answer
A. Increases
crowding
out in the
economy
B. Decreases
real
interest
rates in
the
economy
C. Offsets
the
timing
problem
for fiscal
policy
 D. Serves as 100%
an
automatic
stabilizer
for the
economy
Score: 4/4

21. Chapter 29 #015

The foreign purchases, interest rate, and real-balances effects explain:

Student Correct
Value Feedback
Response Answer
A. Why the 100%
aggregate
demand
curve is
downsloping
B. The
horizontal
range of the
aggregate
supply curve
C. The
classical
range of the
aggregate
supply curve
D. Why the
consumption
schedule
remains
stable when
the price
level
changes
Score: 4/4

22. Chapter 29 #011

The foreign purchases effect suggests that a:
 Student Correct
Value Feedback
Response Answer
A. Fall in our
domestic
price level
will
increase
our
imports
and reduce
our
exports,
thereby
reducing
the net
exports
component
of
aggregate
demand
B. Fall in our
domestic
price level
will
decrease
our
imports
and
increase
our
exports,
thereby
reducing
the net
exports
component
of
aggregate
demand
C. Rise in our 100%
domestic
price level
will
increase
our
 imports
and reduce
our
exports,
thereby
reducing
the net
exports
component
of
aggregate
demand
D. Rise in our
domestic
price level
will
decrease
our
imports
and
increase
our
exports,
thereby
reducing
the net
exports
component
of
aggregate
demand
Score: 4/4

23. Chapter 30 #012

If the Congress passes legislation to raise taxes to control demand-pull inflation,
then this would be an example of a(n):

Student Correct
Value Feedback
Response Answer
A. Political
business cycle
B. Expansionary
fiscal policy
 C. Contractionary 100%
fiscal policy
D. Nondiscretionary
fiscal policy
Score: 4/4

24. Chapter 30 #033

If Congress passes legislation to cut taxes and increase government spending to
counter the effects of a severe recession, this would be an example of a(n):

Student Correct
Value Feedback
Response Answer
A. Standardized
budget
B. Contractionary
fiscal policy
C. Expansionary 100%
fiscal policy
D. Budget
surplus
Score: 4/4

25. Chapter 29 #023

Refer to the above graph, which shows an aggregate demand curve for a
hypothetical economy. If the price level is 200, the quantity of real GDP
demanded is:
 Student Correct
Value Feedback
Response Answer
A. $500
billion
B. $600 100%
billion
C. $700
billion
D. $800
billion
Score: 4/4