Question 1

Cost-push inflation is characterized by a(n) :

Accepted Answer

A)  increase in aggregate supply and a decrease in aggregate demand.
B)  increase in aggregate demand and no change in aggregate supply.
C)  decrease in aggregate supply and no change in aggregate demand.
D)  decrease in both aggregate supply and aggregate demand.E) A) and B)
F) None of the above

Question 2

The following list of items are related to aggregate demand and/or aggregate supply.Entrepreneurial ability Consumer expectations
Degree of excess capacity
Personal income tax rates
Productivity
National income abroad
Business taxes
Domestic resource availability
Business taxes
Domestic resource availability
Prices of imported products
Profit expectations on investments
Refer to the above list.Changes in which combination of factors best explain why the aggregate supply curve would shift?

Accepted Answer

A)  1 and 2
B)  2 and 10
C)  3 and 6
D)  7 and 8E) A) and B)
F) B) and C)

Question 3

Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4.Refer to the above information.All else equal, if the price of each input increased from $4 to $6, productivity would:

Accepted Answer

A)  fall from 2 to 3.
B)  fall from .50 to .33.
C)  rise from 1 to 2.
D)  remain unchanged.E) None of the above
F) A) and D)

Exam 12: Part B: Aggregate Demand and Aggregate Supply

Cost-push inflation is characterized by a(n) :

Correct Answer
verified

Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4.Refer to the above information.All else equal, if the price of each input increased from $4 to $6, productivity would:

Correct Answer
verified

Correct Answer
verified

Exam 12: Part B: Aggregate Demand and Aggregate Supply

Cost-push inflation is characterized by a(n) :

Correct AnswerverifiedShow Answer

Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4.Refer to the above information.All else equal, if the price of each input increased from $4 to $6, productivity would:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified