Aggregate Demand and Supply: Homeschool Curriculum Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Why can crowding out have a strong impact on the economy?

Question 2 2. Which of the following factors does NOT cause a shift in the overall labor supply?

Question 3 3. Which is the best description of the short-run aggregate supply curve?

Question 4 4. What does it mean when the demand for labor shifts to the right?

Question 5 5. What is meant by short run'?

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Question 6 6. Assume that consumption spending is $16,000. For every $200 increase in disposable income, saving goes up by $20. Which of the following statements is true?

Question 7 7. Aggregate supply is defined as the total amount of goods and services that are _____.

Question 8 8. An upward sloping SRAS curve and a vertical LRAS reflect the fact that:

Question 9 9. In the Keynesian model, what is the orientation of the aggregate supply curve?

Question 10 10. Which of the following is true of wages and prices in the Keynesian Model?

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Question 11 11. How is an increase in the average price level in the economy along with a short run decrease in real GDP most likely caused?

Question 12 12. Which model of economic growth more accurately describes economic growth in the long-run?

Question 13 13. Labor supply is the total hours that workers or employees are willing to work at a given _____.

Question 14 14. Which of the following is an inaccurate explanation of why wages are sticky?

Question 15 15. Which of the following most accurately describes the difference between the short-run aggregate supply curve and the long-run aggregate supply curve?

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Question 16 16. According to the AS/AD Model, what happens to real GDP, prices, and unemployment when Consumption increases?

Question 17 17. What is the point at which aggregate supply and aggregate demand intersect?

Question 18 18. Assume the government spends more than it collects in net taxes. Economists refer to this as

Question 19 19. The economy is at the full employment level of real GDP. If wages and prices are flexible, how would a decline in aggregate demand affect GDP and prices in the short run and long run?

Question 20 20. Which of the following will cause aggregate supply to decrease?

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Question 21 21. Why can sticky wages and sticky prices be problematic?

Question 22 22. In a certain fiscal year, the federal government receives $4 trillion in revenue and spends $3.8 trillion for goods and services. What effect would this have on the national debt?

Question 23 23. When there is an unexpected increase in the world supply of oil, the Real GDP will _____.

Question 24 24. XYZ Water Company has recently experienced an increase in labor costs. What will this increase lead to?

Question 25 25. What did Keynes believe?

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Question 26 26. Which of the following correctly describes the curves in the AS/AD Model?

Question 27 27. Why is the income tax relevant to the federal government?

Question 28 28. Which of the following statements is true regarding changing economic conditions?

Question 29 29. Which of the following is an example of a budget surplus?

Question 30 30. How do technological advancements affect aggregate supply, all else constant? Why?

Aggregate Demand and Supply: Homeschool Curriculum Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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