econ final

Question 1

Change in Rates

Answer 1

Shifts AD

Question 2

change in labor

Answer 2

shifts SRAS and LRAS

Question 3

change in technology

Answer 3

shifts LRAS and SRAS

Question 4

Change in taxes

Answer 4

shifts AD

Question 5

change in capital

Answer 5

shift SRAS and LRAS

Question 6

Change in gov. spending

Answer 6

shifts AD

Question 7

change in exchange rates

Answer 7

Shifts AD

Question 8

change in input costs

Answer 8

shifts SRASq

Question 9

Wealth effect

Answer 9

Shifts AD

Question 10

change in expected price level

Answer 10

Shifts SRAS

Question 11

change in natural resources

Answer 11

shifts LRAS

Question 12

optimism/pessimism

Answer 12

Shifts AD

Question 13

adjustments to past expected price level

Answer 13

Shifts SRAS

Question 14

three components of the industrial production index

Answer 14

manufacturing, utility, mining

Question 15

A fortiori

Answer 15

From the stronger

Question 16

what does the fed do to fix falling stock prices

Answer 16

buy bonds to lower the interest rate

Question 17

what does the fed do to combat rising stock prices

Answer 17

sell bonds to raise the interest rate

Question 18

what happens to interest rates when money supply increases

Answer 18

interest rates fall and AD shifts right

Question 19

what do deficits do

Answer 19

they increase interest rates and decrease investments

Question 20

classical model is appropriate for short run or long run

Answer 20

long run: real and nominal variables are determined separately in the long run

Question 21

Phillips curve: policy makers would reduce inflation but raise unemployment if they:

Answer 21

decrease the money supply

Question 22

ex vulgus scientia

Answer 22

from crowd, knowledge

Question 23

If there is excess demand for money, then people will

Answer 23

withdraw money from interest bearing accounts, and the interest rate will rise

Question 24

a fall in the price level results in firms having:

Answer 24

higher prices, which depresses their sales

Question 25

increase in the price level is a reduction in what spending

Answer 25

household consumption and investment

Question 26

lex parsimonia

Answer 26

law of succintness

Question 27

liquidity preference theory

Answer 27

people have a preference for holding money in case of unforeseen expenses or as a precautionary measure.

Question 28

what is measured on the philips curve

Answer 28

inflation rate vs. unemployment

Question 29

how many points falling from the consumer confidence index means the economy will enter a recession

Answer 29

30

Question 30

aggregate demand curve shows that a decrease in the price level

Answer 30

increases the real value of goods and services demanded in the economuy

Question 31

Real GDP

Answer 31

variable most commonly used to measure short-run economic fluctuations. it is almost impossible to predicrt these fluctuations with accuracy

Question 32

after an election...

Answer 32

inflation rises, so the central bank raises interest rates

Question 33

when taxes decrease, consumption

Answer 33

increases as shown by a shift of the AD curve to the right

Question 34

classical macroeconomic theory, changes in the money supply affect

Answer 34

variables measured in terms of money but not variables measured in terms of quantities or relative prices

Question 35

what is not included in the 10 components of the LEI

Answer 35

unemployment rate

Question 36

suum cuique tribuere

Answer 36

to render to every man his due

Question 37

what helps to explain the slope of the AD curve?

Answer 37

the exchange rate effect, the wealth effect, the interest rate effect

Question 38

oil prices fall due to

Answer 38

rising value of the dollar, slower global growth, and rising trade war disputes

Question 39

if the economy starts from long-run equilibrium and aggregate demand shifts right, the central bank must

Answer 39

decrease the money supply so interest rates rise

Question 40

the sticky wage theory suggests that when the price level rises more than expected...

Answer 40

production is more profitable and employment rises

Question 41

what shifts money demand to the left?

Answer 41

decrease in the price level

Question 42

why do some people question the phillips curve?

Answer 42

it doesn't apply in the long run

Question 43

if speculators gained greater confidence in foreign economies so that they wanted to buy more assets of foreign countries and fewer US bonds,

Answer 43

the dollar would depreciate which would cause AD to shift to the right

Question 44

sic semper tyrannus

Answer 44

thus always to tyrants

Question 45

quot capita tot sensus

Answer 45

as many heads so many options

Question 46

petitio principii

Answer 46

request of the beginning

Question 47

ex facie

Answer 47

from the face

Question 48

a contrario

Answer 48

from the opposite

Question 49

ad absurdum

Answer 49

to absurdity

Question 50

ad hominem

Answer 50

to the man

Question 51

a fortiori

Answer 51

from the stronger

Question 52

scio me nihil seire

Answer 52

i know that I know nothing

Question 53

sapiente sat

Answer 53

enough for the wise

Question 54

rem acu tetigisti

Answer 54

you have touched the point with the needle

Question 55

alea iacta est

Answer 55

the die has been cast

Question 56

lex parsimoniae

Answer 56

law of succintness

Question 57

per capita

Answer 57

by heads

Question 58

rerum caugnosere causas

Answer 58

to learn the causes of things

Question 59

una hurundo no facet vere

Answer 59

one swallow does not make summer