Quiz 7 Flashcards
(16 cards)
If a surplus exists in a market, then we know that the actual price is
above the equilibrium price, and quantity supplied is greater than quantity demanded
Suppose the number of buyers in a market increases and a technological advancement occurs also. What would we expect to happen in the market?
Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous
If the nominal interest rate is 5 percent and there is a deflation rate of 3 percent, what is the real interest rate?
8 percent
Suppose there are 200 million people in the population, 120 million people in the civilian labor force, and 90 million people are employed. The number of people unemployed is _______ million and the unemployment rate is ___________ percent
30;25
If Y and M are constant and V doubles, the quantity equation implies that the price level
doubles
If the price level increased from 120 to 130, then what was the inflation rate?
8.3%
The long-run aggregate supply curve
All of the above are correct
The aggregate-demand curve shows the
quantity of domestically produced goods and services that households, firms, the government, and customers abroad want to buy at each price level
Suppose the economy is in long-run equilibrium. Then because of corporate scandal, international tensions, and loss of confidence in policymakers, people become pessimistic regarding the future and retain that level of pessimism for some time. Which curve shifts and in which direction?
aggregate demand shifts left
Shifts in the aggregate-demand curve can cause fluctuations in
the level of output and in the level of prices
Figure 6.2 - The price ceiling causes quantity
demanded to exceed quantity supplied by 85 units
Suppose there were a large decline in net exports. If the Fed wanted to stabilize output, it could
buy bonds to lower interest rates
Suppose consumption decreases at each price level. As a result, aggregate demand __________, and the AD curve shifts __________
decreases; leftward
When the government establishes a price floor that is set above the equilibrium price, this should lead to:
Surplus
On a supply-and-demand diagram, equilibrium is found
where the demand and supply curves intersect
Suppose the real exchange rate of 105 Japanese yen to the dollar moves to 115 yen to the dollar. The dollar has _________________, making Japanese goods __________ expensive for Americans.
appreciated; less
