Exam 1 Macro Econ

D. Increases

C. a positive supply shock and lower price level

B. not in the labor force

B. GDPr: Increases, NIR: Increases

A. Per capita real gross domestic product

E. inflation and unemployment

D. Bond Prices: Decrease, Price Level: Increases

C. The supply of dollars will increase

D. 2010

B. The SRAS curve will shift to the right

E. Supply: Decrease, Demand: No change

B. Investment Expenditures

C. 6,000

D. Decreasing government spending and increasing administered interest rates

E. decrease in factor productivity

B. the interest rate will increase and private investment in plant and equipment will decrease

A. An unanticipated increase in government spending

B. The unemployment rate will increase

D. increase in interest rates caused by an increase in government borrowing

C. Real GDP per capita increased

E) Total Reserves: No change, Money Multiplier: Increase, Money Supply: Increase

B) 20 percent.

B) increase the price level and decrease the real wage

D) Increasing investment in human capital

A) A Japan-based company sells roasted coffee to Canada.

B) Betania has a comparative advantage in producing apparel, and Alphania has a comparative advantage in producing electronics.

C) AD1 to AD2

A) Nominal gross domestic product

A) An increase in investment demand

C) Increasing funding for research and development

A

A

E

C

B

E

B

either D or E) Income Taxes: Dec; Real Int Rate: Dec; Investment: Inc

A

D

B

A

C

B

B

B

E

D

D

A

C

C

D

B

C

D

A

A

A