Macroeconomics Unit 5 Quiz

What is the impact of expansionary fiscal policy on the ASAD model?

• Increase in price level and decrease in real output

• No impact on price level and real output

• Increase in price level and real output

• Decrease in price level and real output

What is the impact of contractionary monetary policy and expansionary fiscal policy on the ASAD model?

• No impact on price level and real output

• Increase in price level and real output

• Decrease in price level and real output

• Indeterminate impact on price level and real output

What is the impact of an increase in the money supply in the long run?

• Increase in real output and decrease in price level

• No change in real output and price level

• No change in real output and increase in price level

• Increase in real output and price level

What does the monetary equation of exchange represent?

• Money supply and velocity of money

• Nominal GDP and real GDP

• Price level and quantity of real output

• Inflation rate and unemployment rate

What is the national debt?

• Current year's budget deficit

• Total government spending

• Total tax revenue

• Accumulation of all previous surpluses and deficits

What is crowding out in the loanable funds market?

• Increase in interest rates and decrease in gross investment due to budget deficit

• Decrease in interest rates due to budget surplus

• No impact on interest rates and gross investment

• Increase in gross investment due to budget deficit

What is the impact of economic growth on the ASAD model?

• Rightward shift of the long-run aggregate supply curve

• Leftward shift of the long-run aggregate supply curve

• Leftward shift of the short-run aggregate supply curve

• No impact on the long-run aggregate supply curve

What does the Phillips curve show the relationship between?

• Inflation rate and real GDP

• Inflation rate and unemployment rate

• Unemployment rate and interest rate

• Interest rate and inflation rate

What is the long-run Phillips curve at the natural rate of unemployment?

• Upward sloping

• Horizontal

• Downward sloping

• Vertical

How is the impact of aggregate demand shifts in the ASAD model reflected in the Phillips curve model?

• Left is left and right is right

• Right is left and left is right

• No impact on the Phillips curve

• Right is right and left is left