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.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more