Greater entrepreneurship in the economy will shift the aggregate:
a. supply curve rightward.
b. supply curve leftward.
c. demand curve rightward.
d. demand curve leftward.
QUESTION 2The precautionary demand for money is the demand for money:
a. for normal transactions purposes.
b. for normal investment purposes.
c. for special stock purchases.
d. to protect against inflation.
e. to cover unexpected events.
QUESTION 3The phase of the business cycle that follows a recession is known as the:
a. peak.
b. recession.
c. recovery.
d. trough.
QUESTION 4The demand for money that households keep for emergency purposes is known as the:
a. precautionary demand.
b. emergency demand.
c. speculative demand.
d. transactions demand.
e. temporary demand.
QUESTION 5Advances in technology will shift the aggregate:
a. demand curve rightward.
b. supply curve rightward.
c. demand curve leftward.
d. supply curve leftward.
QUESTION 6The period during which real output falls during a business cycle is called:
a. peak.
b. recession.
c. recovery.
d. trough.
QUESTION 7A reduction in regulation will shift the aggregate:
a. supply curve leftward.
b. supply curve rightward.
c. demand curve leftward.
d. demand curve rightward.
QUESTION 8The precautionary demand for holding money is when people hold money:
a. instead of near money.
b. to transact purchases they expect to make.
c. as insurance against unexpected needs.
d. to speculate in the stock market.
e. to take advantage of changes in interest rates.
QUESTION 9The point at which real GDP reaches a maximum during a business cycle is called the:
a. peak.
b. recession.
c. recovery.
d. trough.
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