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Unit 3

Total questions: 25

Worksheet time: 20mins

Name
Class
Date
1.

When the price level increases, it's called...

a)

Aggregate Demand

b)

Immediate-Short Run

c)

Inflation

d)

Unemployment

2.

A rise in consumer, business, or government spending could cause this type of inflation.

a)

Demand-Pull

b)

Cost-Push

c)

Political

d)

None of these

3.

In the early 1920s, the German government printed too much money and caused...

a)

Demand-Pull Inflation

b)

Cost-Push Inflation

c)

Political Inflation

d)

None of these

4.

A negative supply shock (natural disaster or expensive crude oil) causes which type of inflation?

a)

Demand-Pull

b)

Cost-Push

c)

Political

d)

None of these

5.

Demand-Pull inflation is the result of a rise in price level caused by an increase in...

a)

Long-Run Aggregate Supply

b)

Short-Run Aggregate Supply

c)

Aggregate Demand

d)

None of these

6.

Cost-Push Inflation is the result of a rise in price level caused by a decrease in...

a)

Long-Run Aggregate Supply

b)

Short-Run Aggregate Supply

c)

Aggregate Demand

d)

None of these

7.

Political Inflation is the result of a change in which curve?

a)

Long-Run Aggregate Supply

b)

Short-Run Aggregate Supply

c)

Aggregate Demand

d)

None of these

8.

On our Aggregate Model, what does the Y-axis represent?

a)

Output

b)

Quantity

c)

Price

d)

Price Level

9.

On our Aggregate Model, what does the X-axis represent?

a)

Output

b)

Quantity

c)

Price

d)

Price Level

10.

Input prices are fixed. Output prices are fixed.

a)

Immediate Short Run

b)

Short Run

c)

Long Run

11.

Output prices are flexible. Input prices are flexible.

a)

Immediate Short Run

b)

Short Run

c)

Long Run

12.

Input prices are fixed but output prices are flexible.

a)

Immediate Short Run

b)

Short Run

c)

Long Run

13.

Which two measurements can be calculated using the same FORMULA?

a)

SRAS and AD

b)

PPF and LRAS

c)

AD and GDP

d)

GNP and ISRAS

14.

On our Aggregate Model, which curve shifts the most often?

a)

Aggregate Demand

b)

Short-Run Aggregate Supply

c)

Long-Run Aggregate Supply

15.

Consumer Spending is a function of...

a)

interest rates

b)

exchange rates

c)

disposable income

d)

other

16.

Net Exports is a function of...

a)

interest rates

b)

exchange rates

c)

disposable income

d)

other

17.

Business Investment is a function of...

a)

interest rates

b)

exchange rates

c)

disposable income

d)

other

18.

If we take a family's yearly expenses, and divide it by that family's disposable income, we'll calculate their...

a)

MPS

b)

MPC

c)

APS

d)

APC

19.

If we put a family's marginal income as the denominator, and put the amount of it that they saved as the numerator, we'd calculate their...

a)

MPS

b)

MPC

c)

APS

d)

APC

20.

(1 / MPS) will calculate...

a)

Tax Multiplier

b)

Spending Multiplier

c)

Literally nothing that we use

21.

(1 / MPC) will calculate...

a)

Tax Multiplier

b)

Spending Multiplier

c)

Literally nothing that we use

22.

(1 / APS) will calculate...

a)

Tax Multiplier

b)

Spending Multiplier

c)

Literally nothing that we use

23.

(MPC / MPS) will calculate...

a)

Tax Multiplier

b)

Spending Multiplier

c)

Literally nothing that we use

24.

Which will always create MORE spending...the tax multiplier or the spending multiplier?

a)

Tax Multiplier

b)

Spending Multiplier

c)

It depends

25.

When is your huge test over all this nonsense?

a)

Wednesday, May 2

b)

Tomorrow

c)

Never

d)

I'm batman