money and bank test bankchap22.docx

1、money and bank test bankchap22The Economics of Money, Banking, and Financial Markets, 9e (Mishkin)Chapter 22 Aggregate Demand and Supply Analysis22.1 Aggregate Demand1) The aggregate demand curve is the total quantity of an economysA) intermediate goods demanded at all price levels.B) intermediate g

2、oods demanded at a particular price level.C) final goods and services demanded at a particular price level.D) final goods and services demanded at different price levels.Answer: DQues Status: Previous Edition2) The total quantity of an economys final goods and services demanded at different price le

3、vels isA) the aggregate supply curve.B) the aggregate demand curve.C) the Phillips curve.D) the aggregate expenditure function.Answer: BQues Status: Previous Edition3) The aggregate demand curve slopes downward because a decrease in the price level means _ in the real money supply and therefore a _

4、level of real spending.A) an increase; higherB) an increase; lowerC) a decrease; lowerD) a decrease; higherAnswer: AQues Status: Previous Edition4) The quantity theory of money is derived fromA) the concept of velocity.B) the Keynesian monetary transmission mechanism.C) the equation of exchange.D) t

5、he money supply.Answer: CQues Status: Previous Edition5) As approached through the quantity theory of money, aggregate demand is derived fromA) the equation of exchange.B) its three component parts: consumer expenditure, investment spending, and government spending.C) its four component parts: consu

6、mer expenditure, investment spending, government spending, and net exports.D) the spending multiplier.Answer: AQues Status: Previous Edition6) According to the quantity theory of money, an increase in the money supply _ aggregate _, everything else held constant.A) increases; demandB) decreases; dem

7、andC) decreases; supplyD) increases; supplyAnswer: AQues Status: Revised7) According to the quantity theory of money, a decrease in the money supply, _ aggregate _, everything else held constant.A) increases; demandB) decreases; demandC) decreases; supplyD) increases; supplyAnswer: BQues Status: Rev

8、ised8) One way to derive aggregate demand is by looking at its four component parts, which are:A) consumer expenditures, planned investment spending, government spending, and net exports.B) consumer expenditures, actual investment spending, government spending, and net exports.C) consumer expenditur

9、es, planned investment spending, government spending, and gross exports.D) consumer expenditures, planned investment spending, government spending, and taxes.Answer: AQues Status: Previous Edition9) By analyzing aggregate demand through its component parts, we can conclude that, everything else held

10、 constant, a decline in the price level causesA) a decline in the real money supply, an increase in interest rates, a decline in investment spending, and a decline in aggregate output demand.B) a decline in the real money supply, a decline in interest rates, an increase in investment spending, and a

11、n increase in aggregate output demand.C) an increase in the real money supply, a decline in interest rates, an increase in investment spending, and an increase in aggregate output demand.D) an increase in the real money supply, an increase in interest rates, a decline in investment spending, and a d

12、ecline in aggregate output demand.Answer: CQues Status: Previous Edition10) By looking at aggregate demand via its component parts, we can conclude that the aggregate demand curve is downward sloping becauseA) a lower price level, holding the nominal quantity of money constant, leads to a larger qua

13、ntity of money in real terms, causes the interest rate to fall, and stimulates planned investment spending.B) a lower price level, holding the nominal quantity of money constant, leads to a larger quantity of money in nominal terms, causes the interest rate to rise, and stimulates planned investment

14、 spending.C) a higher price level, holding the nominal quantity of money constant, leads to a larger quantity of money in real terms, causes the interest rate to fall, and stimulates planned investment spending.D) a higher price level, holding the nominal quantity of money constant, leads to a small

15、er quantity of money in real terms, causes the interest rate to fall, and stimulates planned investment spending.Answer: AQues Status: Previous Edition11) By looking at aggregate demand through its component parts, we can conclude that a _ price level _ the real quantity of money, _ higher spending.

16、A) lower; expands; encouragingB) higher; contracts; encouragingC) lower; contracts; discouragingD) higher; expands; encouragingAnswer: AQues Status: Previous Edition12) By analyzing aggregate demand via its component parts, we can conclude that changes in the money supplyA) have no effect on aggrega

17、te demand.B) affect aggregate demand in the opposite direction of the change in government spending.C) affect aggregate demand in the same direction as the change in government spending.D) affect the quantity of aggregate output demand.Answer: CQues Status: Previous Edition13) Everything else held c

18、onstant, an increase in government spending _ aggregate _.A) increases; demandB) decreases; demandC) decreases; supplyD) increases; supplyAnswer: AQues Status: Revised14) Everything else held constant, a decrease in government spending _ aggregate _.A) increases; demandB) decreases; demandC) decreas

19、es; supplyD) increases; supplyAnswer: BQues Status: Previous Edition15) Everything else held constant, a decrease in net taxes _ aggregate _.A) increases; demandB) decreases; demandC) decreases; supplyD) increases; supplyAnswer: AQues Status: Revised16) Everything else held constant, an increase in

20、net taxes _ aggregate _.A) increases; demandB) decreases; demandC) decreases; supplyD) increases; supplyAnswer: BQues Status: Revised17) Everything else held constant, a balanced budget increase in government spending (that is, an increase in government spending that is matched by an identical incre

21、ase in net taxes) willA) increase aggregate demand, but not by as much as if just government spending increases.B) increase aggregate demand by more than if just government spending increases.C) not affect aggregate demand.D) decrease aggregate demand.Answer: AQues Status: Revised18) Everything else

22、 held constant, an increase in net exports _ aggregate _.A) increases; demandB) decreases; demandC) decreases; supplyD) increases; supplyAnswer: AQues Status: Revised19) Everything else held constant, a decrease in net exports _ aggregate _.A) increases; demandB) decreases; demandC) decreases; suppl

23、yD) increases; supplyAnswer: BQues Status: Revised20) Everything else held constant, an increase in planned investment expenditure _ aggregate _.A) increases; demandB) decreases; demandC) decreases; supplyD) increases; supplyAnswer: AQues Status: Previous Edition21) Everything else held constant, a

24、decrease in planned investment expenditure _ aggregate _.A) increases; demandB) decreases; demandC) decreases; supplyD) increases; supplyAnswer: BQues Status: Previous Edition22) Everything else held constant, aggregate demand increases whenA) taxes are cut.B) government spending is reduced.C) anima

25、l spirits decrease.D) the money supply is reduced.Answer: AQues Status: Previous Edition23) Everything else held constant, aggregate demand increases whenA) net exports decrease.B) taxes increase.C) planned investment spending increases.D) the money supply decreases.Answer: CQues Status: Previous Ed

26、ition24) Everything else held constant, which of the following does not cause aggregate demand to increase?A) An increase in net exportsB) An increase in government spendingC) An increase in taxesD) An increase in consumer optimismAnswer: CQues Status: Previous Edition25) Explain through the compone

27、nt parts of aggregate demand why the aggregate demand curve slopes down with respect to the price level. Be sure to discuss two channels through which changes in prices affect demand.Answer: A fall in the price level increases the real value of a fixed nominal money supply. This increase in the real

28、 money supply lowers interest rates. Lower rates increase investment, thereby increasing aggregate demand. Lower interest rates also cause depreciation of the domestic currency, increasing net exports and aggregate demand.Ques Status: Previous Edition22.2 Aggregate Supply1) The aggregate supply curv

29、e is the total quantity ofA) raw materials offered for sale at different prices.B) final goods and services offered for sale at the current price level.C) final goods and services offered for sale at different price levels.D) intermediate and final goods and service offered for sale at different pri

30、ce levels.Answer: CQues Status: Previous Edition2) The aggregate supply curve shows the relationship betweenA) the level of inputs and aggregate output.B) the price level and the level of inputs.C) the wage rate and the level of employment.D) the price level and the level of aggregate output supplie

31、d.Answer: DQues Status: Previous Edition3) The long-run rate of unemployment to which an economy always gravitates is theA) normal rate of unemployment.B) natural rate of unemployment.C) neutral rate of unemployment.D) inflationary rate of unemployment.Answer: BQues Status: Previous Edition4) The long-run aggregate supply curve isA) a vertical line through the non-inflationary rate of output.B) a vertical line t