FREE AND STUDY GAMES ABOUT ECON UNIT 3 EXAM

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FREE AND STUDY GAMES ABOUT ECON UNIT 3 EXAM

QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -17 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: An advance in technology will cause the

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(E) long-run aggregate supply curve to shift to the right Question 2: 15. According to the short-run Phillips curve, lower inflation rates are associated with

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higher unemployment rates Question 3: A simultaneous increase in inflation and unemployment could be explained by an increase in which of the following?

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(E) Inflationary expectations Question 4: A high marginal propensity to consume implies which of the following?

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(E) A low marginal propensity to save

Question 5: A short-run Phillips curve shows an inverse relationship between

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Inflation and unemployment Question 6: 4. According to the graph above, an increase in aggregate supply will most likely cause income and employment to change in which of the following ways?

Answer:

• income=increase, Employment= increase

Question 7: 30. An advance in technology will cause the

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(E) long-run aggregate supply curve to shift to the right

Question 8: An increase in aggregate demand will cause which of the following?

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A movement along a given short-run Phillips curve Question 9: Which of the following will most likely occur as a result of an increase in labor productivity in an economy?

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(A) An increase in output and a decrease in inflation.Question 10: 7. Which of the following would be the initial impact on an economy if wages were to increase more than worker productivity?

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(D) The short-run aggregate supply curve would shift to the left, increasing the price level.Question 11: 58. Which of the following would cause the short-run aggregate supply curve to shift to the right?

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(E) A decrease in the expected price level

Question 12: 17. An increase in which of the following would cause the aggregate demand curve to shift to the left?

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(D) Income taxes Question 13: An increase in personal income taxes will most likely cause aggregate demand and aggregate supply to change in which of the following ways in the short run?

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AD= decrease, AS= not change Question 14: Which of the following is true about the marginal propensity to consume?

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It determines the size of the simple spending multiplier.Question 15: According to the graph above, which of the following is true about the long-run equilibrium of the economy depicted?

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(E) As wages increase, the short-run aggregate supply curve will shift to the left to restore long-run equilibrium.

Question 16: Stagflation is most likely to be caused by

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(D) a decrease in aggregate supply Question 17: An increase in which of the following is most likely to promote economic growth?

Answer:

• investment tax credits