Question : 111.In Figure 11.1, ceteris paribus, if consumers lose confidence in : 1232925

111.In Figure 11.1, ceteris paribus, if consumers lose confidence in the economy and reduce their spending, the new equilibrium is likely to occur at:   

A. P2 and Q2.

B. P1 and Q2.

C. P3 and Q3.

D. P2 and Q4.

112.In Figure 11.1, ceteris paribus, if businesses experience higher costs for transporting goods because of an increased price for imported oil, the new equilibrium is likely to occur at:   

A. P2 and Q5.

B. P1 and Q2.

C. P3 and Q3.

D. P1 and Q5.

113.In Figure 11.2, at what price level does equilibrium occur?   

A. P1

B. P2

C. P3

D. P4

114.In Figure 11.2, at what level of output does equilibrium occur?   

A. Q2

B. Q3

C. Q4

D. Q5

115.In Figure 11.2, at which of the following price levels would a shortage occur?   

A. P2

B. P3

C. P4

D. P5

116.In Figure 11.2, at which of the following price levels would a surplus occur?   

A. P1

B. P2

C. P3

D. P4

117.Using Figure 11.3, if the economy is in equilibrium at a real output of Q3 then:   

A. Aggregate demand must be AD1.

B. Aggregate supply could be either AS1 or AS2 depending on the level of aggregate demand.

C. The equilibrium price level is P2.

D. Aggregate demand is AD2 and aggregate supply is AS2.

118.Using Figure 11.3, if the equilibrium price level is P1 then aggregate supply is:   

A. AS2 and the equilibrium output level is Q2.

B. AS2 and the equilibrium output level is Q1.

C. AS1 and the equilibrium output level is Q3.

D. AS1 and the equilibrium output level is Q2.

119.Using Figure 11.3, a shift in aggregate demand from AD2 to AD1, ceteris paribus, is most likely to cause:   

A. An increase in real output and an increase in the price level.

B. An increase in real output and a decrease in the price level.

C. A decrease in real output and an increase in the price level.

D. A decrease in real output and a decrease in the price level.

120.Using Figure 11.3, a shift in aggregate supply from AS2 to AS1, ceteris paribus, is most likely to cause:   

A. A decrease in the price level, but no change in real output.

B. A decrease in the price level and an increase in real output.

C. An increase in the price level, but no change in real output.

D. An increase in the price level and an increase in real output.

121.A News Wire article in the textbook is titled “Hurricane Damage to Gulf Ports Delays Deliveries, Raises Costs.” Ceteris paribus, if production costs increase, then aggregate:   

A. Supply will shift to the left.

B. Supply will shift to the right.

C. Demand will shift to the left.

D. Demand will shift to the right.

122.A News Wire article in the textbook is titled “Hurricane Damage to Gulf Ports Delays Deliveries, Raises Costs.” Increased costs are likely to cause:   

A. A decrease in the equilibrium price level and a decrease in real equilibrium output.

B. An increase in the equilibrium price level and an increase in real equilibrium output.

C. An increase in the equilibrium price level and a decrease in real equilibrium output.

D. A decrease in the equilibrium price level and an increase in real equilibrium output.

123.A News Wire article in the text is titled “Consumer Index Sinks to an All-Time Low.” Which of the following is most likely to happen as a result of decreased consumer spending?   

A. A leftward shift of aggregate supply.

B. A rightward shift of aggregate supply.

C. A leftward shift of aggregate demand.

D. A rightward shift of aggregate demand.