Question 181. A fall in real interest rates will reduce aggregate demand.

25 May Question 181. A fall in real interest rates will reduce aggregate demand.

Posted at 14:23h in Essay Writing Services by Past Papers

Question

181. A fall in real interest rates will reduce aggregate demand.

Type: A Level: Moderate E: 191 MA: 191

182. Depreciation of the dollar relative to foreign currencies will tend to increase net exports and aggregate demand.

Type: A Level: Easy E: 192 MA: 192

183. The long-run aggregate supply curve slope is horizontal.

Type: A Level: Moderate E: 193 MA: 193

184. The shape of the short-run aggregate supply curve basically depends on what happens to production costs and therefore to the prices which businesses must receive to cover costs and make a profit as real domestic output expands.

Type: A Level: Moderate E: 195 MA: 195

185. Below the full-employment level of output, per unit production costs rise and firms must receive higher product prices for them to be profitable.

Type: A Level: Moderate E: 195-196 MA: 195-196

186. A change in business taxes and regulation can affect input prices and aggregate supply.

Type: A Level: Moderate E: 195 MA: 195

187. Per-unit production cost is determined by dividing output by total input cost.

Type: A Level: Easy E: 196-198 MA: 196-198

188. A rightward shift of the aggregate demand curve will increase real domestic output and the price level.

Type: A Level: Easy E: 196-198 MA: 196-198

189. When there is an increase in aggregate demand, there will be an increase in the price level but not in the level of output or employment.

Type: A Level: Moderate E: 198 MA: 198

190. A decrease in aggregate demand will have no effect on the real equilibrium GDP of the economy and will lower its price level.

Type: A Level: Moderate E: 194, 199-200 MA: 194, 199-200

191. If the prices of imported resources increase, then aggregate supply will fall.

Type: A Level: Difficult E: 199-200 MA: 199-200

192. Cost-push inflation can be described as a rightward shift of the aggregate supply curve.

Type: A Level: Moderate E: 200 MA: 200

193. An increase in aggregate supply increases the real domestic output and reduces the price level effects from an increase in aggregate demand.

Type: A Level: Moderate E: 199 MA: 199

194. Minimum wage laws tend to make the price level more flexible rather than less flexible.

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