If the price of computers falls during a period when the average price level remains constant, which of the following has occurred? Deflation Inflation A recession A change in relative pricesPrice stability refers to: A constant average price level. An inflation rate of zero. Increases in prices equal to or less than the growth rate of the economy. The absence of significant changes in the average price level. If the CPI is 119 in Year X, then it costs _______ in Year X to buy the same market basket that cost _______ in the base period. $100; $119 $19; $100 $100; $19 $119; $100People who are not working for pay but are actively looking for work are not included in the labor force. FALSE TRUEDuring a period of inflation: Relative prices are rising, but it is not certain what is happening to average prices. Both relative prices and average prices are rising. Specific prices are rising, and relative prices are falling. Average prices are rising, but it is not certain what is happening to relative prices.The labor force is smaller than the total population because the labor force does not include: People looking for a job. People who have jobs. Teachers. The very young and old.Nominal GDP is defined as the: Dollar value of services but not goods. Value of output in current dollars. Value of output in constant prices. Output produced by domestically owned factors of production regardless of where the factors are located.Keynes believed that small disturbances in the economy would be made even greater by the market mechanism and thus government intervention was required. FALSE TRUEThe total amount of output producers are willing and able to produce at alternative price levels in a given time period is known as: Aggregate supply. Real GDP. Aggregate demand. Macro equilibrium.At macro equilibrium: Exports equal imports. Aggregate demand equals aggregate supply. Population growth is stable. Money supply equals money demand.According to the real balances effect, if the price level rises then the real value of savings increases and individuals will buy more output. FALSE TRUEAccording to supply-side theories, an increase in supply incentives shifts the aggregate: Supply curve to the right. Supply curve to the left. Demand curve to the left. Demand curve to the right.Which of the following is an example of the real balances effect, assuming the U.S. price level decreases? U.S. production costs stay constant and profits for businesses decrease. The demand for loans decreases so interest rates decline and loan-financed purchases increase. U.S. goods are less expensive for foreigners to buy and exports increase. The purchasing power of money increases and people buy more goods.Which of the following suggests that lower average prices stimulate more borrowing? The real balances effect The cost effect The profit effect The interest rate effectMonetary policy emphasizes the role of money and interest rates in shifting the aggregate supply curve. TRUE FALSEAt the intersection of the aggregate supply and aggregate demand curves, the economy is experiencing: Macro equilibrium. Full employment. Low levels of inflation. Population growth.The Classical view of the economy is characterized by: Overt fiscal policy. A laissez-faire approach. The inherent instability of the economy. The belief that demand creates its own supply.Fiscal policy is the use of the government’s tax and spending powers to shift the aggregate demand curve. TRUE FALSEFigure 11.2—Aggregate supply and demand In Figure 11.2, at what level of output does equilibrium occur? Q5 Q4 Q3 Q2Individual employment and training programs are levers most likely to be advocated by: Keynesians. Classical economists. Supply-side economists. New classical economists.Ceteris paribus, based on the real balances effect, if the price level falls: Purchasing power increases. Real income decreases. Wealth decreases. Business profits increase.Unlike the Classical economists, Keynes asserted that: Markets would naturally self-adjust. Wages and prices were flexible. Laissez-faire would lead to macro equilibrium. The economy was inherently unstable.Macro equilibrium always occurs at an optimal level of output. FALSE TRUEA tax hike will increase the level of aggregate demand since the government will have more money to spend. TRUE FALSE

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more