National Income and Price Determination
Which factor could cause a movement along the short-run aggregate supply (SRAS) curve rather than shifting it?
A change in price level
A change in production costs
A change in resource prices
A change in technology
If the government decides to subsidize flu vaccinations, a positive externality, what is the most likely outcome in the short run aggregate supply and demand model?
The aggregate demand curve shifts to the right.
The price level decreases while output remains unchanged.
Both the aggregate demand and aggregate supply curves shift to the left.
The aggregate supply curve shifts to the left.
If a country's central bank lowers interest rates, what is likely to happen to investment spending by firms?
Investment spending will increase because borrowing costs are lower.
Investment spending will remain unchanged, as interest rates do not affect business decisions.
Investment spending will decrease, since consumers will prefer saving over consumption.
Investment spending will decrease because saving becomes less attractive.
Which factor will cause a movement along the short-run aggregate supply curve?
An alteration in production costs.
A change in technology.
A shift in aggregate demand.
A change in the price level.
What term describes the total demand for goods and services in an economy at a given overall price level and point in time?
Price Index
Market Supply
Aggregate Demand
Fiscal Deficit
How might central banks utilize unconventional monetary tools effectively during liquidity traps wherein traditional open market operations become ineffective?
Use of quantitative easing to directly increase money supply by purchasing a wide range of financial assets from banks and other private sector entities.
Lowering reserve requirements for banks with the intention of promoting more traditional loans to stimulate spending.
Raising interest rates to encourage bank savings and thereby reduce excess reserves.
Narrowing the spread between discount rate and federal funds rate to encourage interbank lending.
In macroeconomics, what does "AD" stand for?
Average Dividend
Annual Deficit
Asset Depreciation
Aggregate Demand

How are we doing?
Give us your feedback and let us know how we can improve
How does a positive supply shock impact the quantity that producers are willing to supply?
The quantity that producers are willing to supply is not related, but other market factors will be affected
It will increase the quantity that producers are willing to supply
It will reduce the quantity that producers are willing to supply
It will not change the quantity that producers are willing to supply
Considering an open economy where domestic currency appreciates due to high-interest-rate policies aimed at controlling rising domestic prices, what could be observed regarding imports?
The cost for importing goods decreases prompting an increase importation activity.
INCOREECT
INCOREECT
INCOREECT
What effect does a significant improvement in technology typically have on aggregate supply?
It decreases aggregate supply
It has no effect on aggregate supply
It increases aggregate supply
It only affects demand, not supply