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Help MQC macroeconomics

 
 
svlf
 
Reply Sun 1 Mar, 2015 04:10 pm
Hello,
I have some difficulties in a MQC of macroeconomics, can somebody help me to answer those questions please ? It's about aggregate demand and supply...

5. At low levels of real GDP, what is the result of a decrease in aggregate demand ?
A. The price level will fall a lot and the real GDP will fall a little
B. The price level will fall a little and real GDP will fall a lot
C. The price will fall a little and real GDP will rise a lot
D. The price level will fall a little and real GDP will rise a little
E. Both the price level and real GDP will fall about the same amount.
(I would say D. but I'm not sure...)

9. Il the economy is close to full employment, what will be the result of an increase in aggregate demand ?
A. The price level will increase only a little, and real GDP will increase a lot.
B. The price level will increase a lot, and real GDP will increase only a little.
C. Both the price level and real GDP will increase only a little.
D. Both the price level and real GDP will increase a lot.

11. All of the following, except one, are possible causes of the business cycle. Which is the exception?
A. An increase in the economic growth rate.
B. A change in government spending.
C. A change in interest rates.
D. A change in the foreign demand for Canadian products.
E. A significant technological breakthrough.

18. If there is a surplus of goods and services, and a recessionary gap, what will happen in the long run if the price level is currently higher than the macreconomic equilibrium ?
A. The price level will decrease but the nominal wage will increase.
B. The price level will increase but the nominal wage will decrease.
C. Both the price level and the nominal wage will decrease.
D. Both the price level and the nominal wage will increase.

35. Which of the following will shift the aggregate demand curve left?
A. An increase in wealth holdings.
B. A decrease in labour productivity.
C. An increase in government spending.
D. A rise in the exchange rate.
E. An increase in the incomes of our major trading partners.

36. Which of the following will cause the aggregate demand curve to shift to the right?
A. The discovery of new oil fields.
B. A decrease in the money supply.
C. A decrease in the interest rate.
D. An increase in the exchange rate.
E. A decrease in the incomes of our major trading partners.

74. What happens if aggregate expenditures exceeds the level of production?
A. National income exceeds the level of production and inventories will accumulate.
B. The level of production exceeds national income and inventories will accumulate
C. National income exceeds the level of production and inventories will be reduced.
D. The level of production exceeds national income and inventories will be reduced
E. National income is less than total spending and inventories will be reduced.

86. Under what circumstance will the aggregate expenditure function shift upwards?
A. If the price level rises.
B. If the price level falls.
C. If consumer expectations turn pessimistic.
D. If the age of consumer durables is very low.
E. If income rises.

89. Which of the following will cause investment spending to increase?
A. An increase in the rate of interest.
B. An increase in the purchase price of capital equipment.
C. A decrease in wealth holdings in the country.
D. An increase in the age of capital goods.
E. A general feeling that the economy might move into a recession.

98. Which of the following will result in an increase in investment spending?
A. A higher real interest rate, if the nominal interest rate has decreased.
B. New, higher-quality existing stock of capital.
C. Less government red-tape.
D. Newer consumer durables.
E. Higher installation price for capital goods.

Thank you so much for your help !

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