25 May Question 119. Refer to the above graph. At price level P2,:
Question
119. Refer to the above graph. At price level P2,:
A) the quantity of output is constant.
B) the quantity of output is equal to the quantity of output demanded.
C) the quantity of output is greater than the quantity of output demanded.
D) the quantity of output is less than the quantity of output demanded.
Type: G Topic: 4 Level: Easy E: 196-197 MA: 196-197
120. Refer to the above graph. At price level P1,:
A) the quantity of output is constant.
B) the quantity of output is equal to the quantity of output demanded.
C) the quantity of output is greater than the quantity of output demanded.
D) the quantity of output is less than the quantity of output demanded.
Type: A Topic: 4 Level: Moderate E: 196-197 MA: 196-197
121. If at a particular price level, real domestic output from producers is greater than real domestic output desired by purchasers, there will be a:
A) surplus and the price level will rise. C) shortage and the price level will rise.
B) surplus and the price level will fall. D) shortage and the price level will fall.
Use the following to answer questions 122-124:
It shows the aggregate demand-aggregate supply schedule for a hypothetical economy.
Type: T Topic: 4 Level: Easy E: 196-197 MA: 196-197
122. Refer to the above table. The equilibrium price level and quantity of real domestic output will be:
A) 200 and $5000. B) 200 and $6000. C) 250 and $7000. D) 300 and $8000.
Type: T Topic: 4 Level: Moderate E: 196-197 MA: 196-197
123. Refer to the above table. If the quantity of real domestic output demanded increased by $2000 at each price level, the new equilibrium price level and quantity of real domestic output would be:
A) 350 and $8000. B) 300 and $8000. C) 250 and $7000. D) 200 and $6000.
Answer: C
Type: T Topic: 4 Level: Difficult E: 196-197 MA: 196-197
124. Refer to the above table. Using the original data from the table, if the quantity of real domestic output demanded increased by $3000 and the quantity of real domestic output supplied increased by $1000 at each price level, the new equilibrium price level and quantity of real domestic output would be:
A) 350 and $8000. B) 300 and $9000. C) 250 and $8000. D) 200 and $7000.
Type: A Topic: 4 Level: Moderate E: 196-198 MA: 196-198
125. A decrease in aggregate demand will decrease:
A) both real output and the price level.
B) the price level and increase the real domestic output.
C) the real domestic output and have no effect on the price level.
D) the price level and have no effect on real domestic output.
Type: A Topic: 4 Level: Moderate E: 196-198 MA: 196-198
126. Demand-pull inflation will:
A) increase productivity. C) increase the strength of the multiplier.
B) decrease input prices. D) decrease the strength of the multiplier.
Answer: D
Use the following to answer questions 127-128:
Type: G Topic: 4 Level: Easy E: 196-198 MA: 196-198
127. Refer to the above diagram. If AD1 shifts to AD2, then the equilibrium output and price level are:
A) P1Q3. B) P2Q3. C) P1Q2. D) P2Q2.
Type: G Topic: 4 Level: Moderate E: 196-198 MA: 196-198
128. Refer to the above diagram. When AD1 shifts to AD2, then at P1Q3 output demanded will:
A) equal output supplied. C) be less than output supplied.
B) exceed output supplied. D) be at stable full-employment GDP.
Type: G Topic: 4 Level: Moderate E: 197-198 MA: 197-198 Status: New
129. Refer to the above diagram. When AD1 shifts to AD2, real output:
A) increases from Q1 to Q2, but the price level stays the same.
B) increases from Q1 to Q3, but the price level declines.
C) increases from Q1 to Q2, but the price level rises.
D) stays the same, but the price level rises.
Type: G Topic: 4 Level: Moderate E: 197-198 MA: 197-198 Status: New
130. Refer to the above diagram. A shift from AD1 shifts to AD2, would be consistent with what economic event in U.S. history?
A) demand-pull inflation in the late 1960s
B) cost-push inflation in the mid-1970s
C) full-employment in the late 1990s
D) recession in 2001
Use the following to answer questions 131-134:
Answer the next question(s) on the basis of the following aggregate demand and supply schedules for a hypothetical economy.
Type: T Topic: 4 Level: Moderate E: 196-197 MA: 196-197
131. Refer to the above table. What price level would be associated with a shortage of real output?
A) 225 B) 200 C) 150 D) 125
Type: T Topic: 4 Level: Moderate E: 196-197 MA: 196-197
132. Refer to the above table. What price levels would be associated with a surplus of real output?
A) 200 B) 175 C) 125 D) 120
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