经济学原理对应练习33.doc

Chapter 33/Aggregate Demand and Aggregate Supply v 1393
Chapter 33
Aggregate Demand and Aggregate Supply
Multiple Choice
1. Which of the following explains why production rises in most years?
a. increases in the labor force
b. increases in the capital stock
c. advances in technological knowledge
d. All of the above are correct.
ANS: D PTS: 1 DIF: 1 REF: 33-1
TOP: Growth MSC: Definitional
2. On average over the past 50 years, the U.S. economy has grown at the rate of about
a. 1 percent per year.
b. 3 percent per year.
c. 4 percent per year.
d. 6 percent per year.
ANS: B PTS: 1 DIF: 1 REF: 33-1
TOP: Growth MSC: Definitional
3. A short period of falling incomes and rising unemployment is called a
a. depression.
b. recession.
c. expansion.
d. business cycle.
ANS: B PTS: 1 DIF: 1 REF: 33-1
TOP: Business cycle MSC: Definitional
4. During recessions
a. workers are laid off.
b. factories are idle.
c. firms may find they are unable to sell all they produce.
d. All of the above are correct.
ANS: D PTS: 1 DIF: 1 REF: 33-1
TOP: Business cycle MSC: Definitional
5. During a recession the economy experiences
a. rising employment and income.
b. rising employment and falling income.
c. rising income and falling employment.
d. falling employment and income.
ANS: D PTS: 1 DIF: 1 REF: 33-1
TOP: Business cycle MSC: Definitional
6. Which of the following is correct?
a. Economic fluctuations are easily predicted by competent economists.
b. Recessions have never occurred very close together.
c. Other measures of spending, income, and production do not fluctuate closely with real GDP.
d. None of the above is correct.
ANS: D PTS: 1 DIF: 1 REF: 33-1
TOP: Business cycle MSC: Definitional
7. Which of the following is correct?
a. Over the business cycle consumption fluctuates more than investment.
b. Economic fluctuations are easy to predict.
c. During recessions sales and profits tend to fall.
d. Because of government policy the U.S. has suffered no recessions in the last 25 years.
ANS: C PTS: 1 DIF: 1 REF: 33-1
TOP: Business cycle MSC: Definitional
8. During recessions
a. sales and profits fall.
b. sales and profits rise.
c. sales rise, profits fall.
d. profits fall, sales rise.
ANS: A PTS: 1 DIF: 1 REF: 33-1
TOP: Business cycle MSC: Definitional
9. Which of the following typically rises during a recession?
a. garbage collection
b. unemployment
c. corporate profits
d. automobile sales
ANS: B PTS: 1 DIF: 1 REF: 33-1
TOP: Business cycle MSC: Definitional
10. Most economists use the aggregate demand and aggregate supply model primarily to analyze
a. short-run fluctuations in the economy.
b. the effects of macroeconomic policy on the prices of individual goods.
c. the long-run effects of international trade policies.
d. productivity and economic growth.
ANS: A PTS: 1 DIF: 1 REF: 33-1
TOP: Aggregate demand and supply model MSC: Interpretive
11. Real GDP
a. is the current dollar value of all goods produced by the citizens of an economy within a given time.
b. measures economic activity and income.
c. is used primarily to measure long-run trends rather than short-run fluctuations.
d. All of the above are correct.
ANS: B PTS: 1 DIF: 1 REF: 33-1
TOP: Real GDP MSC: Definitional
12. Real GDP
a. moves in the same direction as unemployment.
b. is not adjusted for inflation.
c. also measures real income.
d. All of the above are correct.
ANS: C PTS: 1 DIF: 1 REF: 33-1
TOP: Real GDP MSC: Definitional
13. As recessions begin, production
a. and unemployment both rise.
b. rises and unemployment falls.
c. falls and unemployment rises.
d. and unemployment both fall.
ANS: C PTS: 1 DIF: 1 REF: 33-1
TOP: Unemployment and the business cycle MSC: Definitional
14. During recessions investment
a. falls by a larger percentage than GDP.
b. falls by about the same percentage as GDP.
c. falls by a smaller percentage than GDP.
d. falls but the percentage change is sometimes much larger and sometimes much smaller.
ANS: A PTS: 1 DIF: 2 REF: 33-1
TOP: Investment and the business cycle MSC: Analytical
15. Which of the following is correct concerning recessions?
a They come at fairly regular and predictable intervals.
b. They are associated with comparatively large declines in investment spending.
c. They are any period when real GDP growth is less than average.
d. They tend to be associated with falling unemployment rates.
ANS: B PTS: 1 DIF: 1 REF: 33-1
TOP: Business cycle MSC: Definitional
16. Historically, the change in real GDP during recessions has been
a. mostly a change in investment spending.
b. mostly a change in consumption spending.
c. about equally divided between consumption and investment spending.
d. sometimes mostly a change in consumption and sometimes mostly a change in investment.
ANS: A PTS: 1 DIF: 1 REF: 33-1
TOP: Investment and the business cycle MSC: Definitional
17. Which part of real GDP fluctuates most over the course of the business cycle?
a. consumption expenditures
b. government expenditures
c. investment expenditures
d. net exports
ANS: C PTS: 1 DIF: 1 REF: 33-1
TOP: Investment and the business cycle MSC: Definitional
18. During recessions declines in investment account for about
a. 1/6 of the decline in real GDP.
b. 1/3 of the decline in real GDP.
c. 1/2 of the decline in real GDP.
d. 2/3 of the decline in real GDP.
ANS: D PTS: 1 DIF: 1 REF: 33-1
TOP: Investment and the business cycle MSC: Definitional
19. Investment is a
a. small part of real GDP, so it accounts for a small share of the fluctuation in real GDP.
b. small part of real GDP, yet it accounts for a large share of the fluctuation in real GDP.
c. large part of real GDP, so it accounts for a large share of the fluctuation in real GDP.
d. large part of real GDP, yet it accounts for a small share of the fluctuation in real GDP.
ANS: B PTS: 1 DIF: 1 REF: 33-1
TOP: Investment and the business cycle MSC: Definitional
20. In 2001, the United States was in recession. Which of the following things would you expect not to have happened?
a. increased layoffs and firings
b. a higher rate of bankruptcy
c. increased claims for unemployment insurance
d. increased investment spending
ANS: D PTS: 1 DIF: 1 REF: 33-1
TOP: Business cycle MSC: Interpretive
21. Below are pairs of GDP growth rates and unemployment rates. Economists would be shocked to see most of these pairs. Which pair of GDP growth rates and unemployment rates is realistic?
a. 6 percent, 0 percent
b. 3 percent, 10 percent
c. -1 percent, 6 percent
d. -3 percent, 2 percent
ANS: C PTS: 1 DIF: 1 REF: 33-1
TOP: Unemployment and the business cycle MSC: Interpretive
22. Below are pairs of GDP growth rates and unemployment rates. Economists would be shocked to see most of these pairs. Which pair of GDP growth rates and unemployment rates is realistic?
a. 5 percent, 1 percent
b. 3 percent, 5 percent
c. -1 percent, 3 percent
d. -2 percent, 4 percent
ANS: B PTS: 1 DIF: 1 REF: 33-1
TOP: Unemployment and the business cycle MSC: Interpretive
23. In the last half of 1999, the U.S. unemployment rate was about 4 percent Historical experience suggests that this is
a. above the natural rate, so that real GDP growth was likely low.
b. above the natural rate, so that real GDP growth was likely high.
c. below the natural rate, so that real GDP growth was likely low.
d. below the natural rate, so that real GDP growth was likely high.
ANS: D PTS: 1 DIF: 1 REF: 33-1
TOP: Unemployment and the business cycle MSC: Applicative
24. During the last half of 1980, the U.S. unemployment rate was about 7.5 percent. Historical experience suggests that this is
a. above the natural rate, so that real GDP growth was likely low.
b. above the natural rate, so that real GDP growth was likely high.
c. below the natural rate, so that real GDP growth was likely low.
d. below the natural rate, so that real GDP growth was likely high.
ANS: A PTS: 1 DIF: 1 REF: 33-1
TOP: Unemployment and the business cycle MSC: Applicative
25. The classical dichotomy refers to the separation of
a. variables that move with the business cycle and variables that do not.
b. changes in money and changes in government expenditures.
c. decisions made by the public and decisions made by the government.
d. real and nominal variables.
ANS: D PTS: 1 DIF: 1 REF: 33-2
TOP: Classical dichotomy MSC: Definitional
26. According to classical macroeconomic theory, changes in the money supply affect
a. nominal variables and real variables.
b. nominal variables, but not real variables.
c. real variables, but not nominal variables.
d. neither nominal nor real variables.
ANS: B PTS: 1 DIF: 1 REF: 33-2
TOP: Classical dichotomy MSC: Definitional
27. According to classical macroeconomic theory, changes in the money supply affect
a. real GDP and the price level.
b. real GDP but not the price level.
c. the price level, but not real GDP.
d. neither the price level nor real GDP.
ANS: C PTS: 1 DIF: 2 REF: 33-2
TOP: Classical theory MSC: Definitional
28. To say that money is a veil means that
a. while nominal variables are the first thing we may observe about an economy, what’s important are the real variables and the forces that determine them.
b. money is the principal medium of exchange in most economies.
c. the primary determinant of short-run economic fluctuations is not real variables, but rather changes in the money supply.
d. in the long run money is of no importance to the determination of either real or nominal variables.
ANS: A PTS: 1 DIF: 2 REF: 33-2
TOP: Classical theory MSC: Interpretive
29. Most economists believe that classical macroeconomic theory is a good description of the world
a. in neither the short nor long run.
b. in the short run and in the long run.
c. in the short run, but not in the long run.
d. in the long run, but not in the short run.
ANS: D PTS: 1 DIF: 1 REF: 33-2
TOP: Classical theory MSC: Definitional
30. Most economists believe that after a few years, changes in the money supply change
a. only nominal variables, but not real variables.
b. only real variables, but not nominal variables.
c. neither nominal nor real variables.
d. both nominal and real variables.
ANS: A PTS: 1 DIF: 1 REF: 33-1
TOP: Monetary neutrality MSC: Definitional
31. Real and nominal variables are highly intertwined, and changes in the money supply change real GDP. Most economists would agree that this statement accurately describes
a. both the short run and the long run.
b. the short run, but not the long run.
c. the long run, but not the short run.
d. neither the long run nor the short run.
ANS: B PTS: 1 DIF: 2 REF: 33-2
TOP: Classical theory MSC: Interpretive
32. The quantity of money has no real impact on things people really care about like whether or not they have a job. Most economists would agree that this statement is appropriate concerning
a. both the short run and the long run.
b. the short run, but not the long run.
c. the long run, but not the short run.
d. neither the long run nor the short run.
ANS: C PTS: 1 DIF: 2 REF: 33-2
TOP: Classical theory MSC: Interpretive
33. Classical economist David Hume observed that as the money supply expanded after gold discoveries it took some time for prices to rise and in the meantime the economy enjoyed higher employment and production. This is inconsistent with monetary neutrality because
a. monetary neutrality would mean that neither prices nor production should have risen.
b. monetary neutrality would mean that production should have risen, but prices should not have.
c. monetary neutrality would mean the prices should have risen, but production should not have changed.
d. monetary neutrality would mean that prices and production should both have fallen.
ANS: C PTS: 1 DIF: 2 REF: 33-2
TOP: Monetary neutrality | David Hume MSC: Interpretive
34. The model of short-run economic fluctuations focuses on the price level and
a. real GDP.
b. economic growth.
c. the neutrality of money.
d. None of the above is correct.
ANS: A PTS: 1 DIF: 1 REF: 33-2
TOP: Aggregate demand and supply model MSC: Definitional
35. The average price level is measured by
a any real variable.
b. the rate of inflation.
c. the level of the money supply.
d. the CPI or the GDP deflator.
ANS: D PTS: 1 DIF: 1 REF: 33-2
TOP: Price level MSC: Definitional
36. The model of aggregate demand and aggregate supply explains the relationship between
a. the price and quantity of a particular good.
b. unemployment and output.
c. wages and employment.
d. real GDP and the price level.
ANS: D PTS: 1 DIF: 1 REF: 33-2
TOP: Aggregate demand and supply model MSC: Definitional
37. The variables on the vertical and horizontal axes of the aggregate demand and supply graph are
a. the price level, real output.
b. real output, employment.
c. employment, the inflation rate.
d. the value of money, the price level.
ANS: A PTS: 1 DIF: 1 REF: 33-2
TOP: Aggregate demand and supply model MSC: Definitional
38. Which of the sentences concerning the aggregate demand and aggregate supply model is correct?
a. The aggregate demand and supply model is nothing more than a large version of the model of market demand and supply.
b. The price level and quantity of output adjust to bring aggregate demand and supply into balance.
c. The aggregate supply curve shows the quantity of goods and services that households, firms, and the government want to buy at each price.
d. All of the above are correct.
ANS: B PTS: 1 DIF: 1 REF: 33-2
TOP: Aggregate demand and supply model MSC: Interpretive
39. Which of the following adjusts to bring aggregate supply and demand into balance?
a. the price level and real output
b. the real rate of interest and the money supply
c. government expenditures and taxes
d. the saving rate and net exports
ANS: A PTS: 1 DIF: 1 REF: 33-2
TOP: Aggregate demand and supply model MSC: Definitional
40. The aggregate demand curve
a. has a slope that is explained in the same way as the slope of the demand curve for a particular product.
b. is vertical in the long run.
c. shows an inverse relation between the price level and the quantity of all goods and services demanded.
d. All of the above are correct.
ANS: C PTS: 1 DIF: 1 REF: 33-3
TOP: Aggregate demand slope MSC: Definitional
41. Other things the same, a fall in the economy's overall level of prices tends to
a. raise both the quantity demanded and supplied of goods and services.
b. raise the quantity demanded of goods and services, but lower the quantity supplied.
c. lower the quantity demanded of goods and services, but raise the quantity supplied.
d. lower both the quantity demanded and the quantity supplied of goods and services.
ANS: B PTS: 1 DIF: 1 REF: 33-3
TOP: Aggregate demand and supply slopes MSC: Definitional
42. As the price level rises