Chapter 14 Aggregate Demand and Aggregate Supply

| November 9, 2018

14)
The level of output determined by the intersection of the short-run aggregate
supply curve and the aggregate demand curve
A)
is always below full-employment output.
B)
is always above full-employment output.
C)
always corresponds to full-employment output.
D)
may be above, below, or equal to full-employment output.

15)
Output in the short run is determined by which of the following factors when an
economy operates at full employment?
A)
demand
B)
supply
C)
the price level
D)
the labor force

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Figure 14.2

16)
Refer to Figure 14.2. A movement from point a to point c could be
caused by a(n)
A)
increase in government spending.
B)
decrease in the price of oil.
C)
increase in taxes.
D)
increase in short-run aggregate supply.

17)
Refer to Figure 14.2. A movement from point c to point a could be
caused by a(n)
A)
decrease in government spending.
B)
increase in the price of oil.
C)
decrease in taxes.
D)
decrease in short-run aggregate supply.

18)
Refer to Figure 14.2. A movement from point d to point b could be
caused by a(n)
A)
increase in government spending.
B)
increase in the price of oil.
C)
increase in taxes.
D)
decrease in short-run aggregate supply.

19)
Refer to Figure 14.2. A movement from point b to point d could be
caused by a(n)
A)
decrease in government spending.
B)
increase in the price of oil.
C)
decrease in taxes.
D)
increase in short-run aggregate supply.

20)
Refer to Figure 14.2. A movement from point d to point c could be
caused by a(n)
A)
increase in government spending.
B)
increase in the price of oil.
C)
increase in taxes.
D)
increase in short-run aggregate supply.

21)
Refer to Figure 14.2. A movement from point a to point b could be
caused by a(n)
A)
increase in government spending.
B)
decrease in the price of oil.
C)
decrease in taxes.
D)
decrease in short-run aggregate supply.

22)
Refer to Figure 14.2. A movement from point b to point a could be
caused by a(n)
A)
increase in government spending.
B)
decrease in the price of oil.
C)
increase in taxes.
D)
a massive crop failure.

Recall
the Application about the factors involved in causing recessions, and the
causes of recessions in the United States from 1893 to 1990 to answer the
following question(s).

23)
Recall the Application. Recessions can occur either when there is a(n) ________
in aggregate demand or a(n) ________ in aggregate supply.
A)
increase; increase
B)
increase; decrease
C)
decrease; decrease
D)
decrease; increase

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