Question

1. While one occasionally sees references to inflation over short time periods, the term typically implies a(n)_____________ in prices.

A. ongoing decrease

B. ongoing rise

C. short term rise

D. short term decrease

2. In macroeconomics, ___________________________ describes a situation in which two people each want to exchange some good or service that the other can provide.

A. a medium of exchange

B. a double coincidence of wants

C. interrelated banking

D. the usefulness of money

3. During a recession, if a government uses an expansionary fiscal policy to increase GDP, the:

A. aggregate supply curve will shift to the right.

B. aggregate supply curve will shift to the left.

C. aggregate demand curve will shift to the left.

D. aggregate demand curve will shift to the right.

4. Which of the following would be expected if the tariff on foreign-produced automobiles were increased?

A. The domestic price of automobiles would fall.

B. The supply of foreign automobiles to the domestic market would decline, causing auto prices to rise.

C. The number of unemployed workers in the domestic automobile industry would rise.

D. The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.

Answer 1