[{"id":213599,"question":"The aggregate demand curve shows the combinations of output and the price level that put the economy on.","choices":[{"text":"The FE line and the IS curve","value":"A"},{"text":"The FE line The IS curve and the LM curve","value":"B"},{"text":"The IS curve","value":"C"},{"text":"The IS curve and the LM curve","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213598,"question":"<blockquote style=\"margin: 0 0 0 40px; border: none; padding: 0px;\">Classical economics believe that in the short run.</blockquote>","choices":[{"text":"Money neutrality exists and prices adjust rapidly","value":"A"},{"text":"Money neutrality does not exist and prices adjust rapidly","value":"B"},{"text":"Money neutrality does not exist and prices adjust rapidly","value":"C"},{"text":"Money neutrality exists and prices do not adjust rapidly.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213597,"question":"Keynesian economists think general equilibrium is not attained quickly because.","choices":[{"text":"The real interest rate adjusts slowly","value":"A"},{"text":"The level of output adjusts slowly","value":"B"},{"text":"The real wage rate adjusts slowly","value":"C"},{"text":"The price level adjusts quickly","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213596,"question":"Classical economics think general equilibrium is attained relatively quickly because.","choices":[{"text":"The real interest rate adjusts quickly","value":"A"},{"text":"The level of output adjusts quickly.","value":"B"},{"text":"The real wage rate adjusts quickly","value":"C"},{"text":"The price level adjusts quickly.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213595,"question":"Which of the following is a NOT component of M-2.","choices":[{"text":"Small time deposited","value":"A"},{"text":"Money market mutual funds","value":"B"},{"text":"Stocks","value":"C"},{"text":"Checkable deposits","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213594,"question":"Suppose the intersection of the IS and LM curves is to the left of the FE line A decrease in the price level would most likely. eliminate a disequilibrium among the asset labor and goods markets by.","choices":[{"text":"Shifting the LM curve down and to the right","value":"A"},{"text":"Shifting the IS curve up and to the right","value":"B"},{"text":"Shifting the IS curve down and to the left","value":"C"},{"text":"Shifting the FE curve to the left","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213593,"question":"Which market adjusts the quickest in response to shocks to the economy.","choices":[{"text":"The asset market","value":"A"},{"text":"The labor market","value":"B"},{"text":"The goods market","value":"C"},{"text":"In the macro economy","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213592,"question":"An adverse supply shock that is permanent shifts which curve in addition to the curves shifted by.<div>One that is temporary.</div>","choices":[{"text":"The LM curve","value":"A"},{"text":"The IS curve","value":"B"},{"text":"The FE line","value":"C"},{"text":"The labor demand curve","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213591,"question":"After a temporary beneficial supply shock hits the economy general equilibrium is restored by","choices":[{"text":"A shift down and to the left of the IS curve","value":"A"},{"text":"A shift to the left of the FE line","value":"B"},{"text":"A shift up and to the left to the LM curve","value":"C"},{"text":"A shift down and to the right of the LM curve","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213590,"question":"What adjusts to restore general equilibrium after a shock to the economy.","choices":[{"text":"The LM curve","value":"A"},{"text":"The IS curve","value":"B"},{"text":"The FE line","value":"C"},{"text":"The labor supply curve","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213589,"question":"When all markets in the economy are simultaneously in equilibrium we say.","choices":[{"text":"Markets are complete","value":"A"},{"text":"Markets are perfect","value":"B"},{"text":"There is disequilibrium","value":"C"},{"text":"There is general equilibrium.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213588,"question":"An increase in wealth that doesn't affect labor supply would cause the IS curve to _________ and the FE line to ____________","choices":[{"text":"Shift down and to the left be unchanged","value":"A"},{"text":"Shift down and to the left shift left","value":"B"},{"text":"Shift up and to the right be unchanged","value":"C"},{"text":"Shift up and to the right shift left","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213587,"question":"A change that increase real money demand relative to the real money supply causes.","choices":[{"text":"The LM curve to shift down and to the right","value":"A"},{"text":"The LM curve to shift up and to the left","value":"B"},{"text":"The IS curve to shift down and to the left","value":"C"},{"text":"The IS curve to shift up and to the right","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213586,"question":"A change that increases the real money supply relative to real money demand causes.","choices":[{"text":"The LM curve to shift down and to the right.","value":"A"},{"text":"The LM curve to shift up and to the left","value":"B"},{"text":"The IS curve to shift down and to the left","value":"C"},{"text":"The IS curve to shift up and to the right.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213585,"question":"A rise in the price of bond causes the yield of the bond to.","choices":[{"text":"Rise","value":"A"},{"text":"Fall","value":"B"},{"text":"Remain unchanged","value":"C"},{"text":"Rise uf ut's a short term bond, fall if it's a long term bond","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213584,"question":"An increase in the expected future marginal product of capital would cause the IS curve to.","choices":[{"text":"Shift up and to the right","value":"A"},{"text":"Shift down and to the left","value":"B"},{"text":"Remain unchanged if firms face borrowing constraints otherwise shift down and to the left","value":"C"},{"text":"Remain changed","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213583,"question":"A decrease in wealth would cause the IS curve to","choices":[{"text":"Shift up and to the right","value":"A"},{"text":"Shift down and to the left","value":"B"},{"text":"Remain unchanged","value":"C"},{"text":"Shift up and to the right only in poeple face borrowing constraints.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213582,"question":"A temporary decline in productivity would cause the IS curve to.","choices":[{"text":"Shift up and to the right","value":"A"},{"text":"Shift down and to the left","value":"B"},{"text":"Remain unchanged","value":"C"},{"text":"Shift up and to right only if people face borrowing constraints","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213581,"question":"An increase labor supply would cause the IS curve to.","choices":[{"text":"Shift up and to the right","value":"A"},{"text":"Shift down and to the left","value":"B"},{"text":"Remain unchanged","value":"C"},{"text":"Shift up and to the right only if people face borrowing constraints","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213580,"question":"A decrease in the effective tax rate on capital would cause the IS curve to.","choices":[{"text":"Shift up and to the right","value":"A"},{"text":"shift down and to the left","value":"B"},{"text":"Remain unchanged","value":"C"},{"text":"Remain unchanged if taxes are fully deducible from income otherwise, shift up and to the right","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213579,"question":"A decline expected future output would cause the IS curve to.","choices":[{"text":"Shift up and to the right","value":"A"},{"text":"Shift down and to the left","value":"B"},{"text":"Remain unchanged","value":"C"},{"text":"shift up and to the right only if people face borrowing constratints.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213578,"question":"The IS curve shows the combinations of output and the real interest rate for which.","choices":[{"text":"The goods market is in equilibrium","value":"A"},{"text":"The labor market is in equilibrium.","value":"B"},{"text":"The financial assets market is in equilibrium","value":"C"},{"text":"An increase in output will cause the market clearing interest rate to be bid up.","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213577,"question":"A disadvantage of the barter system is that","choices":[{"text":"No trade occurs","value":"A"},{"text":"People must produce all their own food clothing and shelter","value":"B"},{"text":"The opportunity to specialize is greatly reduced.","value":"C"},{"text":"Gold is the only unit of account","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213576,"question":"Economists use the phrase ceteris paribus to express the assumption.","choices":[{"text":"All else equal","value":"A"},{"text":"Everything affects everything else.","value":"B"},{"text":"Scarcity is a fact of life","value":"C"},{"text":"There is no such thing as a free lunch","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213575,"question":"If the demand for coffee decreases as income decreases, coffee is a","choices":[{"text":"Normal good","value":"A"},{"text":"Inferior good","value":"B"},{"text":"Substitute good","value":"C"},{"text":"Complementary good","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213574,"question":"Which of the following solutions does the economist suggest to cost inflation in higher education.","choices":[{"text":"Cutting professor salaries","value":"A"},{"text":"Make students live at home","value":"B"},{"text":"Reduce college from four to three years","value":"C"},{"text":"B and C","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213573,"question":"An efficient economy is an economy","choices":[{"text":"In which output is steady or growing and there is low inflation","value":"A"},{"text":"That produces what consumers demand and does so at the least possible cost.","value":"B"},{"text":"that distributes output equally among all consumers","value":"C"},{"text":"In which there is a fair distribution of wealth.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213572,"question":"As the economy nears full capacity the short run aggregate supply curve","choices":[{"text":"Stagflation","value":"A"},{"text":"Structural inflation","value":"B"},{"text":"Demand side inflation","value":"C"},{"text":"Supply side inflation","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213571,"question":"The main cause of cyclical unemployment is that.","choices":[{"text":"Firms engage in race gender and sex discrimination in their hiring practices.","value":"A"},{"text":"Some induvial do not have marketable job skills.","value":"B"},{"text":"the level of overall economic activity fluctuates","value":"C"},{"text":"Workers offer voluntarily quit a job to look for a better job.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213570,"question":"Which of the following actions is an example of expansionary fiscal policy.","choices":[{"text":"A decrees in welfare payments","value":"A"},{"text":"A purchase of government scantiest in the open market","value":"B"},{"text":"A decrease in the Bank rate","value":"C"},{"text":"A decrease in the corporate profits tax rates","value":"D"},{"value":"E"}],"correctAnswer":4}]