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Question 1. The dynamic aggregate demand curve is 

Question 1. The dynamic aggregate demand curve is 

Question

1. The dynamic aggregate demand curve is
A) upward sloping.
B) downward sloping.
C) a vertical line.
D) a horizontal line.

2 The Solow growth curve is
A) upward sloping.
B) downward sloping.
C) a vertical line.
D) a horizontal line.

3. Which of the following can shift the Solow growth curve?
A) wars
B) increases in technology
C) strikes
D) Each of these answers is correct.

4. A negative real shock causes the Solow growth curve to shift
A) up.
B) down.
C) left.
D) right.

5. Wages that do not respond quickly to changes in the inflation rate are
A) real wages.
B) flexible wages.
C) decreasing wages.
D) sticky wages.

6. The short-run aggregate supply curve is
A) upward sloping.
B) downward sloping.
C) a vertical line.
D) a horizontal line.

Page 2
7. A negative real shock causes
A) a lower inflation rate and a lower real growth rate.
B) a lower inflation rate and a higher real growth rate.
C) a higher inflation rate and a lower real growth rate.
D) a higher inflation rate and a higher real growth rate.

8. From Point X in the accompanying dynamic aggregate demand model, a negative real
shock will cause the economy to move to Point
A) W.
B) X.
C) Y.
D) Z.

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