BEC MCQ 5.1 Flashcards
A recession can be caused by
A decrease in aggregate demand
A decrease in aggregate supply
A period where Real GDP is rising is called
expansion
Peak and trough
Highest and lowest level of economic activity
Most expansionary set of fiscal policies
Increase Government purchases decrease in taxes
Increase in taxes in a contractionary fiscal policy
An increase in supply of money is a expansionary monetary policy
A increase in Government spending will cause
Real GDP rise and unemployment fall
An increase in personal income tax will cause
Real GDP to fall and unemployment to rise
Normal sequence of business cycle
Expansion, peak, Contraction and trough
Leftward shift of aggregate demand curve
An increase in the level of real interest rates
Right shift of demand curve
An increase in wealth, An increase in Government spending, An increase in consumer confidance. A fall in input rates and fall in input costs
Within the framework of aggregate demand and aggregate supply model an increase in
Real output to expand and price level to fall
Which one of the following is most likely to accompany a reduction in aggregate demand
A decrease in employment
An increase in nominal wages
will cause in Decreasing GDP and increase in price level
Economic Fluctuations ae best described as
Fluctuations in the level of economic activity relative to a long term growth trend.
Rightward shift in aggregrate supply curve
Real GDP per capital
Real GDP/ Population
Reasons for national output to fall
An rise in real interest rates, a rise in value of x currency,decrease in government spending, and increase in consumer taxes
