An adverse supply shock causes the short-run aggregate supply curve to shift left, increasing the ...

An adverse supply shock causes the short-run aggregate supply curve to shift left, increasing the price level.
 
  Indicate whether the statement is true or false

---

Ques. 2

If the size of the underground economy is large,
 
  A) government agencies have difficulty measuring nominal and real GDP.
  B) it is relatively easy to gather productivity data on many businesses.
  C) measuring real GDP is relatively easy, but measuring nominal GDP is difficult.
  D) measuring nominal GDP is relatively easy, but measuring real GDP is difficult.

---

Ques. 3

The application of economic analysis to human resources issues is called
 
  A) labor economics. B) human economics.
  C) personnel economics. D) resource economics.

---

Ques. 4

When the Fed uses contractionary policy
 
  A) it does not change the price level.
  B) the price level rises less than it would if the Fed did not pursue policy.
  C) it causes inflation.
  D) the price level rises higher than it would if the Fed did not pursue policy.

---

Ques. 5

If expected inflation rises, the long-run Phillips curve will
 
  A) become negatively sloped. B) shift to the left.
  C) shift to the right. D) not be affected.

---

Ques. 6

Refer to Scenario 25-2. As a result of Kristy's deposit, Bank A's required reserves increase by
 
  A) 2,000. B) 8,000. C) 10,000. D) 50,000.

---

Ques. 7

The inflation rate measures the percentage increase in the price level from one year to the next.
 
  Indicate whether the statement is true or false

---

Ques. 8

In 2003, Congress passed a tax cut that included a reduction in the marginal tax rate on stock dividends. This essentially increased the after-tax rate of return on stocks that offer dividends.
 
  Using the loanable funds market, describe what will happen to saving, investment, economic growth, the real interest rate, and the quantity of loanable funds exchanged.

---

Ques. 9

Refer to Figure 16-6. Suppose instead of charging the monopoly price for his classes, Sensei charges the competitive price. What is the competitive price and what is the quantity demanded at this price?
 
  A) P1, Q0 B) P0, Q1 C) P1, Q1 D) P0, Q0