Lower taxes on businesses will shift the aggregate:
a. demand curve rightward.
b. demand curve leftward.
c. supply curve rightward.
d. supply curve leftward.
QUESTION 2If you hold money in anticipation of household emergency expense, this represents the::
a. speculative demand for holding money.
b. transactions demand for holding money.
c. opportunity cost motive for holding money.
d. precautionary demand for holding money.
e. regressive cost of holding money.
QUESTION 3A business cycle is the:
a. period of time in which expansion and contraction of economic activity are equal.
b. period of time in which there are three phases: peak, depression, and recovery.
c. recurring growth and decline in real GDP.
d. period of time in which a business is established and ceases operations.
QUESTION 4An increase in oil prices will shift the aggregate:
a. demand curve leftward.
b. demand curve rightward.
c. supply curve leftward.
d. supply curve rightward.
QUESTION 5The precautionary demand for money:
a. varies inversely with the income level.
b. varies inversely with the price level.
c. is used as an insurance agent against unexpected needs.
d. states that nominal income must exceed real income.
e. is a classical concept in monetary theory.
QUESTION 6Which of the following is true of the business cycle record of the United States?
a. Recessions have been lengthier during the last two decades than was true prior to 1980.
b. Real GDP contracted throughout most of the 1950s.
c. Real GDP in 2000 was approximately the same as 1950.
d. Since 1950, the fluctuations in GDP have been less severe than before 1950.
QUESTION 7Other factors held constant, a decrease in resource prices will shift the aggregate:
a. demand curve leftward.
b. demand curve rightward.
c. supply curve leftward.
d. supply curve rightward.
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