Chapter-13-宏观经济学原理-弗兰克版-题库（含答案）

Chapter13

Student:___________________________________________________________________________

1.

Theeconomyisinlong-runequilibrium:

A.

whentheADandAScurvesintersectatpotentialoutput,Y*.

B.

whentheADandAScurvesintersect,regardlessofthelevelofoutput.

C.

whentheADandAScurvesbecomevertical.

D.

onlywhenthebusinesscycleiseliminated.

2.

Theeconomyisinshort-runequilibrium:

A.

whentheADandAScurvesintersectatpotentialoutputY*.

B.

whentheADandAScurvesintersectatalevelofrealGDPthatisaboveorbelowY*.

C.

whentheADandAScurvesbecomevertical.

D.

atthepeakofthebusinesscycle.

3.

Shiftsin______canpushtheeconomyoutoflong-runequilibrium.

A.

theADcurveonly

B.

theAScurveonly

C.

eithertheADcurveortheAScurve

D.

thePAElineonly

4.

Shiftsin______canreturntheeconomytolong-runequilibrium.

A.

theADcurveonly

B.

theAScurveonly

C.

eithertheADcurveortheAScurve

D.

thePAElineonly

5.

Theaggregatedemandcurveshowstherelationshipbetweenplannedspendingandthe:

A.

nominalinterestrate.

B.

realinterestrate.

C.

unemploymentrate.

D.

inflationrate.

6.

TheADcurve______because,holdingallelseconstant,anincreasein______causesC,IPandNXtofall.

A.

slopesdownward;realGDP

B.

slopesdownward;theinflationrate

C.

slopesupward;realGDP

D.

ishorizontal;theinflationrate

7.

Whentheinflationrateincreases,PAE______,whichinturncausesYto______becauseof______.

A.

falls;fall;theincome-expendituremultiplier

B.

falls;rise;theincome-expendituremultiplier

C.

rises;rise;thewealtheffect

D.

rises;fall;thewealtheffect

8.

Whentheinflationratedecreases,PAE______,whichinturncausesYto______becauseof______.

A.

rises;rise;theincome-expendituremultiplier

B.

rises;fall;theincome-expendituremultiplier

C.

falls;rise;thewealtheffect

D.

falls;fall;thewealtheffect

9.

Anincreaseintheinterestratedirectlyaffects______,butalsohasanindirecteffecton______becauseofitseffectonexchangerates.

A.

plannedconsumptionandinvestment;governmentspending

B.

plannedconsumptionandinvestment;netexports

C.

netexports;plannedconsumptionandinvestment

D.

netexports;governmentspending

10.

WhentheinterestrateintheU.S.rises,U.S.financialassets:

A.

becomelessattractivetoforeignbuyers.

B.

becomemoreattractivetobothforeignanddomesticbuyers.

C.

becomelessattractivetobothforeignanddomesticbuyers.

D.

becomelessattractivetodomesticbuyersandmoreattractivetoforeignbuyers.

11.

WhentheinterestrateintheU.S.falls,U.S.financialassets:

A.

becomemoreattractivetoforeignbuyers.

B.

becomelessattractivetobothforeignanddomesticbuyers.

C.

becomemoreattractivetobothforeignanddomesticbuyers.

D.

becomelessattractivetodomesticbuyersandmoreattractivetoforeignbuyers.

12.

IftheinterestrateintheU.S.falls,U.S.financialassetsbecome______attractivetobuyersandthe______U.S.dollarswillfall.

A.

more;demandfor

B.

more;supplyof

C.

less;demandfor

D.

less;supplyof

13.

IftheinterestrateintheU.S.rises,U.S.financialassetsbecome______attractivetobuyersandthe______U.S.dollarswillrise.

A.

more;demandfor

B.

more;supplyof

C.

less;demandfor

D.

less;supplyof

14.

TheADcurveslopesdownwardbecauseanincreasein______causes______tofall,whichinturncausesrealGDPtofall.

A.

theinflationrate;plannedspending

B.

plannedspending;theinflationrate

C.

realGDP;plannedspending

D.

realGDP;theunemploymentrate

15.

Theaggregatedemandcurveshiftswhentherearechangesin:

A.

theinflationrate.

B.

plannedspendingthatarenotcausedbychangesinoutputortheinflationrate.

C.

plannedspendingthatarecausedonlybychangesinoutputortheinflationrate.

D.

realGDP.

16.

Changesinplannedspendingnotcausedbychangesinoutputortheinflationratewillshiftthe:

A.

aggregatesupplycurve.

B.

Keynesiancross.

C.

potentialoutputline.

D.

aggregatedemandcurve.

17.

Changesinplannedspendingthatshifttheaggregatedemandcurvearethose:

A.

causedbychangesinoutput.

B.

causedbychangesintheinflationrate.

C.

causedbychangesinoutputandchangesintherealinterestrate.

D.

notcausedbychangesinoutputorchangesintheinflationrate.

18.

Ademandshockisachangeinplannedspendingthatis:

A.

causedbychangesinoutput.

B.

causedbychangesintheinflationrate.

C.

causedbychangesinoutputandchangesintherealinterestrate.

D.

notcausedbychangesinoutputorchangesintheinflationrate.

19.

Apositivedemandshockwillshiftthe______curvetothe______.

A.

AD;left

B.

AD;right

C.

AS;left

D.

AS;right

20.

Anegativedemandshockwillshiftthe______curvetothe______.

A.

AD;left

B.

AD;right

C.

AS;left

D.

AS;right

21.

Asuddenincreaseinhouseholdwealthisanexampleofa______demandshock,whichshiftstheADcurvetothe______.

A.

negative;left

B.

positive;left

C.

negative;right

D.

positive;right

22.

Firmssuddenlybecomingpessimisticaboutfuturebusinessprospectsisanexampleofa______demandshock,whichwouldshifttheADcurvetothe______.

A.

negative;left

B.

positive;left

C.

negative;right

D.

positive;right

23.

Foragiveninflationrate,ifconcernsaboutfutureweaknessintheeconomycausebusinessestoreducetheirspendingonnewcapital,thenthe______shifts_____.

A.

aggregatedemandcurve;right

B.

aggregatedemandcurve;left

C.

aggregatesupplycurve;left

D.

aggregatesupplycurve;right

24.

Foragiveninflationrate,ifbrightprospectsforthefutureoftheeconomycausebusinessestoincreasespendingonnewcapital,thenthe______shifts_____.

A.

aggregatedemandcurve;right

B.

aggregatedemandcurve;left

C.

aggregatesupplycurve;left

D.

aggregatesupplycurve;right

25.

Foragiveninflationrate,ifariseinthestockmarketmakesconsumersmorewillingtospend,thenthe______shifts_____.

A.

aggregatedemandcurve;right

B.

aggregatedemandcurve;left

C.

aggregatesupplycurve;left

D.

aggregatesupplycurve;right

26.

Foragiveninflationrate,ifastockmarketcrashmakesconsumerslesswillingtospend,thenthe______shifts_____.

A.

aggregatedemandcurve;right

B.

aggregatedemandcurve;left

C.

aggregatesupplycurve;left

D.

aggregatesupplycurve;right

27.

Foragiveninflationrate,ifincreasingthreatstodomesticsecuritycausethegovernmenttoincreasemilitaryspending,thenthe______shifts_____.

A.

aggregatedemandcurve;right

B.

aggregatedemandcurve;left

C.

aggregatesupplycurve;left

D.

aggregatesupplycurve;right

28.

Foragiveninflationrate,ifaresolutionofinternationaldisputesleadstoacutbackingovernmentmilitaryspending,thenthe______shifts_____.

A.

aggregatedemandcurve;right

B.

aggregatedemandcurve;left

C.

aggregatesupplycurve;left

D.

aggregatesupplycurve;right

29.

TheADcurvecanbeshiftedby:

A.

bothfiscalandmonetarypolicy.

B.

neitherfiscalnormonetarypolicy.

C.

fiscalpolicyonly.

D.

monetarypolicyonly.

30.

Theaggregatesupplycurveshowstherelationshipbetweentheamountofoutputfirmswanttoproduceandthe______.

A.

nominalinterestrate

B.

realinterestrate

C.

unemploymentrate

D.

inflationrate

31.

Duetomenucosts,manyfirmsintheeconomywillincreasetheiroutput:

A.

onlyaftertheyraisethepriceatwhichtheyarewillingtoselltheiroutput.

B.

beforeraisingthepriceatwhichtheyarewillingtoselltheiroutput.

C.

insteadofraisingthepriceatwhichtheyselltheiroutput.

D.

orraisethepriceatwhichtheyselltheiroutput,butneverboth.

32.

Firmsthatfacemenucostsreacttoasustainedincreaseindemandby:

A.

increasingoutputandthenraisingthepriceoftheiroutput.

B.

charginghigherprices,withoutnecessarilyincreasingtheamountofoutputtheyarewillingtosell.

C.

charginglowerprices,whilesimultaneouslyincreasingtheamountofoutputtheyarewillingtosell.

D.

increasingoutputandthenreducingthepriceoftheiroutput.

33.

Anincreaseintheaggregatedemandforgoodsandserviceswillresultinanincreaseintheamountofoutputfirmsarewillingtoproduce,andthisincreaseinoutputisaccompaniedby:

A.

adecreaseintheinflationrate.

B.

anincreaseintheinflationrate.

C.

adecreaseinnominalGDP

D.

anincreaseinpotentialGDP.

34.

TheAScurveslopesupwardbecause:

A.

firmsgenerallyselltheirproductsatpresetprices.

B.

relaxingtheassumptionsoftheKeynesianmodelallowsustodevelopamorerealisticmodelwherefirmsnolongercareaboutprices.

C.

manyfirmsraisetheirpriceswhenaggregatedemandhasincreased.

D.

inflationishigheringoods-producingindustriesthanservice-producingindustries.

35.

Thetendencyforinflationtochangerelativelyslowlyfromyeartoyearinindustrialcountriesiscalled:

A.

theinflationgap

B.

inflationexpectations.

C.

inflationinertia.

D.

potentialinflation.

36.

Inflationinertiaisthetendencyforinflationto:

A.

equalzero.

B.

changerelativelyslowlyfromyeartoyear.

C.

decreasewhentheFedincreasesinterestrates.

D.

increasewhentheFeddecreasesinterestrates.

37.

Inflationinertiaistheresultofthebehaviorof____andtheexistenceof______.

A.

thecentralbank;automaticstabilizers

B.

realandnominalinterestrates;anoutputgap

C.

autonomousaggregatedemand;theFed'spolicyreactionfunction

D.

inflationexpectations;long-termwageandpricecontracts

38.

Alowrateofexpectedinflationtendstoleadtoa___rateofactualinflationandahighrateofexpectedinflationtendstoleadtoa____rateofactualinflation.

A.

high;high

B.

high;low

C.

low;low

D.

low;high

39.

Lowexpectedinflationleadsto____increasesinwagesandcostsandto____actualinflation.

A.

large;high

B.

large;low

C.

small;low

D.

small;high

40.

Highexpectedinflationleadsto____increasesinwagesandcostsandto____actualinflation.

A.

large;high

B.

large;low

C.

small;low

D.

small;high

41.

Whenactualoutputequalspotentialoutputthereis____outputgapandtherateofinflationwilltendto____.

A.

anexpansionary;increase

B.

anexpansionary;decrease

C.

no;remainthesame

D.

arecessionary;increase

42.

Whenactualoutputexceedspotentialoutputthereis____outputgapandtherateofinflationwilltendto____.

A.

anexpansionary;increase

B.

anexpansionary;decrease

C.

no;remainthesame

D.

arecessionary;increase

43.

Whenactualoutputislessthanpotentialoutput,thereis____outputgapandtherateofinflationwilltendto____.

A.

anexpansionary;increase

B.

anexpansionary;decrease

C.

arecessionary;decrease

D.

arecessionary;increase

44.

Startingfrompotentialoutput,iffirmsbecomemoreoptimisticaboutthefutureanddecidetoincreasetheirinvestmentinnewcapital,thenthiswillgeneratea(n)_____gapandinflationwill_____.

A.

recessionary;increase

B.

recessionary;decrease

C.

expansionary;decrease

D.

expansionary;increase

45.

Startingfrompotentialoutput,iffirmsbecomelessoptimisticaboutthefutureanddecidetodecreasetheirinvestmentinnewcapital,thenthiswillgeneratea(n)_____gapandinflationwill_____.

A.

recessionary;increase

B.

recessionary;decrease

C.

expansionary;decrease

D.

expansionary;increase

46.

Startingfrompotentialoutput,ifconsumerconfidenceincreasesandconsumersdecidetospendmore,thenthiswillgeneratea(n)_____gapandinflationwill_____.

A.

recessionary;increase

B.

recessionary;decrease

C.

expansionary;decrease

D.

expansionary;increase

47.

Startingfrompotentialoutput,ifconsumerconfidencedecreasesandconsumersdecidetospendless,thenthiswillgeneratea(n)_____gapandinflationwill_____.

A.

recessionary;increase

B.

recessionary;decrease

C.

expansionary;decrease

D.

expansionary;increase

48.

TheAScurveslopesupwardbecause:

A.

allfirmswillincreasetheirpricesinresponsetoanincreaseinaggregatedemand,butsomewillincreasetheiroutputandotherswilldecreasetheiroutput.

B.

allfirmswillincreasetheirprices,butnottheiroutputinresponsetoanincreaseinaggregatedemand.

C.

somefirmswillincreasetheirpricesandtheiroutputinresponsetoanincreaseinaggregatedemand.

D.

allfirmswillincreasetheirpricesandtheiroutputinresponsetoanincreaseinaggregatedemand.

49.

Anincreaseinaggregatesupplyisusuallyshownbya______shiftoftheAScurve.

A.

inverse

B.

upward

C.

leftward

D.

rightward

50.

AleftwardshiftoftheAScurveindicates:

A.

adecreaseinaggregatesupply.

B.

anincreaseinaggregatesupply.

C.

adecreaseinpotentialGDP.

D.

anincreaseinpotentialGDP.

51.

Astheavailabletechnologyimproves,______shiftstothe_____.

A.

aggregatedemand;left

B.

aggregatedemand;right

C.

aggregatesupply;left

D.

aggregatesupply;right

52.

Asthenumberorqualityofavailableresourcesimproves,______shiftstothe_____.

A.

aggregatedemand;left

B.

aggregatedemand;right

C.

aggregatesupply;left

D.

aggregatesupply;right

53.

Technologicalimprovements:

A.

decreaseaggregatedemand.

B.

increaseaggregatedemand.

C.

decreaseaggregatesupply.

D.

increaseaggregatesupply.

54.

Asthequalityofavailableresourcesbecomesworse:

A.

aggregatedemandfalls.

B.

aggregatedemandrises.

C.

aggregatesupplyfalls.

D.

aggregatesupplyrises.

55.

Changesintheexpectedrateofinflationwill:

A.

notshifttheAScurve.

B.

shifttheAScurveleftwardorrightward.

C.

causetheAScurvetobecomevertical.

D.

causetheAScurvetobecomedownward-sloping.

56.

Ifhouseholdsandfirmsexpecthigherratesofinflation,the______curvewillshift_____.

A.

AD;rightward

B.

AS;rightward

C.

AS;leftward

D.

AD;untilitbecomesvertical

57.

Theaggregatesupplycurvewillshiftrightwardinresponseto:

A.

anincreaseintheexpectedrateofinflation.

B.

adecreaseintheexpectedrateofinflation.

C.

anincreaseinpotentialGDP.

D.

adecreaseinpotentialGDP.

58.

Asuddenchangeinthenormalbehaviorofinflation,unrelatedtothenation'soutputgap,iscalled:

A.

short-runequilibrium.

B.

long-runequilibrium.

C.

aninflationshock.

D.

inflationinertia.

59.

Aninflationshockis:

A.

thelevelofinflationconsistentwithoutputinarecessionarygap.

B.

thelevelofinflationconsistentwithoutputinanexpansionarygap.

C.

asuddenchangeinthenormalbehaviorofinflation,unrelatedtothenation'soutputgap.

D.

achangeintheinflationrategeneratedbyexcessiveaggregatespending.

60.

Alargeincreaseinoilpricesisanexampleof:

A.

apositiveinflationshock.

B.

anegativeinflationshock.

C.

inflationinertia.

D.

excessiveaggregatespending.

61.

Alargedecreaseinoilpricesisanexampleof:

A.

apositiveinflationshock.

B.

anegativeinflationshock.

C.

inflationinertia.

D.

excessiveaggregatespending.

62.

Startingfromlong-runequilibrium,anegativeinflationshockresultsinashort-runequilibriumwith___inflationand____output.

A.

higher;higher

B.

higher;lower

C.

higher;potential

D.

lower;lower

63.

Startingfromlong-runequilibrium,apositiveinflationshockresultsinashort-runequilibriumwith___inflationand____output.

A.

higher;higher

B.

higher;lower

C.

lower;higher

D.

lower;lower

64.

Anexampleofanegativeinflationshockis:

A.

anincreaseininterestrates.

B.

anincreaseingovernmentpurchases.

C.

asignificantriseinoilprices.

D.

ataxincrease.

65.

Whenactualoutputequalspotentialoutput,thereis______outputgapandtheinflationratewill____.

A.

anexpansionary;exceedtheexpectedrateofinflation

B.

anexpansionary;belowerthantheexpectedrateofinflation

C.

no;beequaltotheexpectedrateofinflation

D.

arecessionary;exceedtheexpectedrateofinflation

66.

Whenactualoutputexceedspotentialoutput,thereis______outputgapandtheinflationratewill____.

A.

anexpansionary;exceedtheexpectedrateofinflation

B.

anexpansionary;belowerthantheexpectedrateofinflation

C.

no;beequaltotheexpectedrateofinflation

D.

arecessionary;exceedtheexpectedrateofinflation

67.

Whenactualoutputislessthanpotentialoutput,thereis______outputgapandtheinflationratewill____.

A.

anexpansionary;exceedtheexpectedrateofinflation

B.

anexpansionary;belowerthantheexpectedrateofinflation

C.

arecessionary;belowerthantheexpectedrateofinflation

D.

arecessionary;exceedtheexpectedrateofinflation

68.

WhenusingtheAD-ASmodeltounderstandbusinesscycles,thequestion,"whatarethefundamentalcausesofbusinesscycles?"canbethoughtofasthequestion:

A.

"whatfactorsmovetheeconomyawayfromlong-runequilibrium?"

B.

"whatfactorsmoveaggregatedemandandaggregatesupplyindifferentdirections?"

C.

"whatfactorsincreaseordecreasepotentialGDP?"

D.

"whatfactorsincreaseordecreasetheexpectedrateofinflation?"

69.

Supposetheeconomyiscurrentlyoperatingatpotentialoutput;arecessionarygapmaybecausedbyeachofthefollowingexcept:

A.

anegativedemandshock.

B.

anegativeinflationshock.

C.

adecreaseingovernmentspending.

D.

adecreaseintheinflationrate.

70.

Supposetheeconomyiscurrentlyoperatingatpotentialoutput;arecessionarygapmaybecausedbyeachofthefollowingexcept:

A.

anegativedemandshock.

B.

apositiveinflationshock.

C.

anincreaseintaxes.

D.

adecreaseinthemoneysupply.

71.

Supposetheeconomyiscurrentlyoperatingatpotentialoutput;anexpansionarygapmaybecausedbyeachofthefollowingexcept:

A.

apositivedemandshock.

B.

apositiveinflationshock.

C.

anincreaseingovernmentspending.

D.

anincreaseintheinflationrate.

72.

Supposetheeconomyiscurrentlyoperatingatpotentialoutput;anexpansionarygapmaybecausedbyeachofthefollowingexcept:

A.

apositivedemandshock.

B.

anegativeinflationshock.

C.

adecreaseintaxes.

D.

anincreaseinthemoneysupply.

73.

Startingfrompotentialoutput,iffirmsbecomemoreoptimisticanddecidetoincreasetheirinvestmentinnewcapital,thenthiswillshiftthe______curvetotherightandgenerate______.

A.

aggregatedemand;arecessionaryoutputgap

B.

aggregatesupply;arecessionaryoutputgap

C.

aggregatedemand;anexpansionaryoutputgap

D.

aggregatesupply;anexpansionaryoutputgap

74.

Startingfrompotentialoutput,iffirmsbecomelessoptimisticanddecidetodecreasetheirinvestmentinnewcapital,thenthiswillshiftthe______curvetotheleftandgenerate______.

A.

aggregatedemand;arecessionaryoutputgap

B.

aggregatesupply;arecessionaryoutputgap

C.

aggregatedemand;anexpansionaryoutputgap

D.

aggregatesupply;anexpansionaryoutputgap

75.

Startingfrompotentialoutput,ifconsumerconfidenceincreasesandconsumersdecidetospendmore,thenthiswillshiftthe______curvetotherightandgenerate______.

A.

aggregatedemand;arecessionaryoutputgap

B.

aggregatesupply;arecessionaryoutputgap

C.

aggregatedemand;anexpansionaryoutputgap

D.

aggregatesupply;anexpansionaryoutputgap

76.

Startingfrompotentialoutput,ifconsumerconfidencedecreasesandconsumersdecidetospendless,thenthiswillshiftthe______curvetotheleftandgenerate______.

A.

aggregatedemand;arecessionaryoutputgap

B.

aggregatesupply;arecessionaryoutputgap

C.

aggregatedemand;anexpansionaryoutputgap

D.

aggregatesupply;anexpansionaryoutputgap

77.

Graphically,short-runequilibriumoccursattheintersectionoftheaggregatedemandcurveand:

A.

theaggregatesupplycurveandpotentialoutput.

B.

theplannedaggregateexpenditureline.

C.

theaggregatesupplycurve.

D.

potentialoutput.

78.

Whentheeconomyisinshort-runequilibrium,therewillbe______outputgap.

A.

no

B.

onlyarecessionary

C.

eitherarecessionaryoranexpansionary

D.

onlyanexpansionary

79.

Whenactualoutputequalspotentialoutputandtheinflationrateisequaltotheexpectedrateofinflation,theeconomyissaidtobein______equilibrium.

A.

long-run

B.

recessionary

C.

expansionary

D.

short-run

80.

Graphically,long-runequilibriumoccursattheintersectionoftheaggregatedemandcurveand:

A.

theaggregatesupplycurveandpotentialoutput.

B.

theplannedaggregateexpenditureline.

C.

theaggregatesupplycurve.

D.

potentialoutput.

81.

Refertothefigurebelow.Theeconomypicturedinthefigurehasa(n)______gapwithashort-runequilibriumindicatedbypoint___.

A.

recessionary;A

B.

recessionary;B

C.

recessionary;C

D.

expansionary;A

82.

Refertothefigurebelow.ThecurrentlevelofGDPinthiseconomyis______;thepotentiallevelofGDPis______.

A.

Y1;Y1

B.

Y2;Y2

C.

Y1;Y2

D.

Y2;Y1

83.

Refertothefigurebelow.Long-runequilibriuminthiseconomy:

A.

willbeimpossibletoachieve.

B.

couldoccurifADshiftsdownwardtotheleft.

C.

couldoccurifASshiftsdownwardandtotheright.

D.

willoccuronlyifADshiftsupwardtotheright.

84.

Refertothefigurebelow.Theeconomypicturedinthefigurehasa(n)______gapwithashort-runequilibriumcombinationofthepricelevelandoutputindicatedbypoint___.

A.

recessionary;A

B.

recessionary;B

C.

expansionary;C

D.

expansionary;A

85.

Refertothefigurebelow.ThecurrentlevelofGDPinthiseconomyis______;thepotentiallevelofGDPis______.

A.

Y1;Y1

B.

Y2;Y2

C.

Y1;Y2

D.

Y2;Y1

86.

Refertothefigurebelow.Long-runequilibriuminthiseconomy:

A.

willbeimpossibletoachieve.

B.

couldoccurifADshiftsupwardtotheright.

C.

couldoccurifASshiftsupwardandtotheleft.

D.

willoccuronlyifADshiftsdownwardtotheleft.

87.

TheGreatRecessionwastheresultof:

A.

twonegativedemandshocks.

B.

anegativedemandshockandanegativeinflationshock.

C.

twopositiveinflationshocks.

D.

anegativedemandshockandapositiveinflationshock.

88.

ThetwonegativedemandshocksthatcausedtheGreatRecessionwere:

A.

declininghousingpricesandthe2008financialpanic.

B.

declininghousingpricesanddecliningstockprices.

C.

increasingoilpricesandthe2008financialpanic.

D.

increasingoilpricesanddecliningstockprices.

89.

Theself-correctingpropertyoftheeconomymeansthatoutputgapsareeventuallyeliminatedby:

A.

risingorfallingprices.

B.

fallingpricesonly.

C.

increasingordecreasingpotentialoutput.

D.

governmentpolicy.

90.

Thefactthatoutputgapswillnotlastindefinitely,butwillbeclosedbyrisingorfallingpricesistheeconomy’s:

A.

short-runequilibriumproperty.

B.

self-correctingproperty.

C.

income-expendituremultiplier.

D.

long-runequilibriumproperty.

91.

Theself-correctingtendencyoftheeconomymeansthatrisinginflationeventuallyeliminates:

A.

expansionarygaps.

B.

recessionarygaps.

C.

exogenousspending.

D.

unemployment.

92.

Theself-correctingtendencyoftheeconomymeansthatfallinginflationeventuallyeliminates:

A.

expansionarygaps.

B.

recessionarygaps.

C.

exogenousspending.

D.

unemployment.

93.

Toachievelong-runequilibriuminaneconomywitharecessionarygap,withouttheuseofstabilizationpolicy,theinflationratemust:

A.

increase.

B.

decrease.

C.

notchange.

D.

eitherincreaseordecreasedependingontherelativeshiftsofADandAS.

94.

Aneconomywithanexpansionarygapwill,intheabsenceofstabilizationpolicy,eventuallyexperiencea(n)______intheinflationrate,leadingtoa(n)______inoutput.

A.

increase;increase

B.

increase;decrease

C.

decrease;increase

D.

decrease;decrease

95.

Startingfromlong-runequilibrium,alargeincreaseingovernmentpurchaseswillresultina(n)______gapintheshortrunand____inflationand____outputinthelongrun.

A.

expansionary;higher;potential

B.

expansionary;lower;potential

C.

expansionary;higher;higher

D.

recessionary;higher;lower

96.

Startingfromlong-runequilibrium,alargedecreaseingovernmentpurchaseswillresultina(n)______gapintheshortrunand____inflationand____outputinthelongrun.

A.

expansionary;higher;potential

B.

recessionary;lower;potential

C.

expansionary;higher;higher

D.

recessionary;higher;potential

97.

Refertothefigurebelow.SupposetheeconomyisinitiallyinequilibriumwithoutputY2andinflationrateofπ3.Anincreaseinmilitaryspendingwill:

A.

shiftADfromAD2toAD1.

B.

shiftADfromAD1toAD2.

C.

shiftASfromAS2toAS1.

D.

shiftASfromAS1toAS2.

98.

Refertothefigurebelow.SupposethattheeconomyisinitiallyinequilibriumwithoutputY2andinflationrateofπ3.Anincreaseinmilitaryspendingwillgenerate:

A.

arecessionarygap.

B.

anexpansionarygap.

C.

disinflation.

D.

hyperinflation.

99.

Refertothefigurebelow.Supposetheeconomyisinashort-runequilibriumatoutputY1andinflationrateπ2.Theeconomyiscurrentlyexp