Question : 51) When the price level in the United States rises : 1244801

 

 

51) When the price level in the United States rises relative to the price level of other countries, ________ will rise, ________ will fall, and ________ will fall.

A) imports; exports; net exports

B) exports; imports; net exports

C) net exports; exports; imports

D) net exports; imports; exports

 

52) The international trade effect states that a(n) ________ in the price level will ________ net exports.

A) increase; increase

B) increase; decrease

C) decrease; decrease

D) decrease; not affect

 

53) Just before, during, and after the recession of 2007-2009, net exports in the United States

A) fell and remained negative

B) fell, but remained positive

C) rose and became positive.

D) rose, but remained negative.

54) Which of the following is one explanation as to why the aggregate demand curve slopes downward?

A) Increases in the price level lower the interest rate and decrease consumption spending.

B) Increases in the price level lower the interest rate and decrease investment spending.

C) Increases in the U.S. price level relative to the price level in other countries lowers net exports.

D) Increases in the price level raise real wealth and lowers consumption spending.

 

55) A decrease in the price level will

A) shift the aggregate demand curve to the left.

B) shift the aggregate demand curve to the right.

C) move the economy up along a stationary aggregate demand curve.

D) move the economy down along a stationary aggregate demand curve.

 

56) Inflation will

A) increase aggregate demand.

B) increase the quantity of real GDP demanded.

C) decrease aggregate demand.

D) decrease the quantity of real GDP demanded.

 

57) Spending on the war in Afghanistan is essentially categorized as government purchases. How do increases in spending on the war in Afghanistan affect the aggregate demand curve?

A) They will move the economy down along a stationary aggregate demand curve.

B) They will move the economy up along a stationary aggregate demand curve.

C) They will shift the aggregate demand curve to the right.

D) They will shift the aggregate demand curve to the left.

 

58) The impact of Hurricane Katrina on consumers in the economy was to make them very pessimistic about their future incomes. How does this increased pessimism affect the aggregate demand curve?

A) This will move the economy up along a stationary aggregate demand curve.

B) This will move the economy down along a stationary aggregate demand curve.

C) This will shift the aggregate demand curve to the left.

D) This will shift the aggregate demand curve to the right.

 

59) Lower personal income taxes

A) increase aggregate demand.

B) decrease disposable income.

C) decrease aggregate demand.

D) increase transfer payments.

 

60) Which of the following will shift the aggregate demand curve to the left, ceteris paribus?

A) an increase in interest rates

B) an increase in disposable income

C) an increase in expected profits for firms

D) an increase in net exports

 

 

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