Question 1 0 / 1 pts A reduction in interest rates will shift __________. Correct Answer aggregate demand to the left You Answered aggregate demand to the right aggregate supply to the right aggregate supply to the left The answer can be found in Chapter 6, Section 6.3, Macroeconomic Equilibrium and Changes in Equilibrium. Question 2 0 / 1 pts Monty owns an export/import firm in Brooklyn, New York. Last year, Monty’s firm experienced a surplus in its balance on goods and services. What does this mean for Monty? His inventory contained more exports than imports. His inventory contained more imports than exports. Correct Answer His purchases of imports from foreign markets were less than their purchases of his exports. You Answered His purchases of imports from foreign markets exceeded purchases of his exports by foreign markets. The answer can be found in Chapter 5, Section 5.1, Revisiting the Circular Flow Model. Question 3 1 / 1 pts If the economy’s price level and Joan Smith’s nominal income increase by the same proportion, then Joan Smith’s real income __________. increases decreases Correct! remains unchanged cannot be determined Question 4 1 / 1 pts An aggregate demand (AD) curve shows the quantity of __________. a single product that all consumers will buy at various prices, all else being equal Correct! total real output that all consumers in an economy will buy at various price levels a total of services that all consumers will buy at various prices, all e ...
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