Question :
81.According to the Keynesian view of aggregate supply, an increase : 1232969
81.According to the Keynesian view of aggregate supply, an increase in the money supply will:
A. Always cause inflation.
B. Cause inflation if the economy is at full employment.
C. Cause inflation only if aggregate supply is horizontal.
D. Never cause inflation.
82.According to the monetarist view, the aggregate supply curve is:
A. Upward sloping to the right.
B. Perfectly vertical at the natural rate of unemployment.
C. Flat or horizontal until full employment is reached.
D. Flat or horizontal at all levels of output.
83.According to the monetarist view, the aggregate supply curve is:
A. Horizontal until full employment is reached and then it becomes vertical.
B. Horizontal at all levels of output.
C. Vertical at the natural rate of unemployment.
D. First horizontal, then upward sloping, and finally vertical.
84.According to the aggregate supply drawn under the monetarist view, which of the following would lead to a higher price level?
A. The purchase of bonds in the open market by the Fed.
B. An increase in the discount rate.
C. An increase in the reserve requirement.
D. A decrease in the money multiplier.
85.Using the aggregate supply drawn under the monetarist view, what should happen to the equilibrium price level and quantity of output if the Fed buys bonds?
A. Equilibrium price level and equilibrium output should both increase.
B. Equilibrium price level should increase, and equilibrium output should decrease.
C. Equilibrium price level should decrease, and equilibrium output should increase.
D. Equilibrium price level should increase and equilibrium output should stay constant.
86.Which of the following best describes the eclectic aggregate supply curve?
A. Horizontal until full employment is reached, and then it becomes vertical.
B. Vertical at all output levels.
C. First horizontal, then upward sloping, and finally vertical.
D. Downward sloping.
87.An eclectic aggregate supply curve:
A. Is the supply-side counterpart to monetarist and Keynesian assumptions about the shape of aggregate demand.
B. Combines elements of the monetarist and Keynesian assumptions about the shape of aggregate supply.
C. Maintains a constant upward slope as the economy moves through the business cycle.
D. Is horizontal at all levels of output.
88.Given an upward-sloping aggregate supply curve, which of the following is most likely to occur if the Fed sells bonds in the open market, ceteris paribus?
A. Greater inflation and more unemployment.
B. Greater inflation and less unemployment.
C. Lower average prices and less unemployment.
D. Lower average prices and more unemployment.
89.Given an upward-sloping aggregate supply curve, attempts to reduce unemployment through monetary policy will aggravate current inflation as illustrated by a:
A. Leftward shift of aggregate demand.
B. Rightward shift of aggregate demand.
C. Leftward shift of aggregate supply.
D. Rightward shift of aggregate supply.
90.Given an upward-sloping aggregate supply curve, which of the following is most likely to occur if the Fed pursues restrictive monetary policy, ceteris paribus?
A. The equilibrium price level and output will both decrease.
B. The equilibrium price level and output will both increase.
C. The equilibrium price level will decrease but output will stay the same.
D. The equilibrium output will decrease but the price level will stay the same.
