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(1) Country A and Country B initially have the same real GDP per capita

Economics

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(1)

Country A and Country B initially have the same real GDP per capita. Country A experiences no economic growth, while Country B grows at a sustained rate of 4 percent. In 36 years, Country A's GDP will be approximately ____ that of Country B.

Group of answer choices

?one-fourth

?one-half

?double

?triple

(2)

Which of the following statements represents a correct and sequentially accurate economic explanation?

Group of answer choices

Goods X and Y are complements. The price of X rises, the quantity demanded of X falls, and the demand for Y falls.

Goods X and Y are substitutes. The price of X rises, the demand for X falls, and the demand for Y rises.

Goods X and Y are substitutes. The price of X falls, the demand for X rises, and the quantity demanded of Y rises.

Goods X and Y are substitutes. The price of X falls, the quantity demanded of X rises, and the demand for Y rises.

Goods X and Y are complements. The price of X falls, the quantity demanded of X rises, and the demand for Y falls.

(3)

Suppose that for a given good, demand decreases and supply decreases at the same time. If supply decreases by a greater amount than demand decreases, then equilibrium price __________ and equilibrium quantity __________ for that good.

Group of answer choices

rises; rises

rises; falls

falls; rises

falls; falls

(4)

The government imposes a $2.50 per-unit tax on the consumption of good X. As a result the

Group of answer choices

supply curve for good X shifts leftward and the price of good X rises.

quantity demanded of good X falls and the price of good X rises.

demand curve for good X shifts leftward and the price of good X falls.

demand curve for good X shifts rightward and the price of good X rises.

supply curve for good X shifts leftward and the price of good X falls.

(5)

On a supply-and-demand diagram, consider a price for which the horizontal distance to the demand curve exceeds the horizontal distance to the supply curve. There is a __________ at that price and the current price must be __________ the equilibrium price.

Group of answer choices

shortage; above

shortage; below

surplus; above

surplus; below

(6)

Within the aggregate demand and supply model (AD-AS model), which one of the following adjustments will cause the economy to return to its long-run capacity when output is temporarily greater than the economy's long-run potential?

Group of answer choices

Lower wage rates and resource prices reduce short-run aggregate supply.

Lower interest rates increase aggregate demand and, thereby, stimulate output.

Higher wage rates and resource prices reduce short-run aggregate supply.

A decrease in prices reduces aggregate demand.

(7)

Increases in the capital stock:

Group of answer choices

?Shift the short run aggregate supply curve upward.

?Shift the long run aggregate supply curve to the right.

?Shift short run aggregate supply curves upward and long run aggregate supply curves to the right.

?Do none of the above

(8)

Which of the following does not increase U.S. aggregate demand?

Group of answer choices

?an increase in real wealth

?lower interest rates

?an increase in imports

?a decrease in the exchange rate value of the dollar

(9)

The long-run aggregate supply curve (LRAS curve) is ____ with real output levels that ____.

Group of answer choices

?upward sloping; vary positively with the price level

?upward sloping; vary negatively with the price level

?vertical; are equal to the natural level of real output at all price levels

?vertical; can be either greater than or less than the natural level of real output

(10)

Aggregate demand does not include:

Group of answer choices

?Purchases of intermediate goods and final goods.

?Purchases of used goods and services.

?Purchases of stocks and bonds.

?Aggregate demand does not include any of the above.

(11)

The short-run aggregate supply curve:

Group of answer choices

?Is a schedule showing the relationship between the price level and the quantity of real GDP supplied.

?Is typically upward sloping.

reflects output prices changing relative to input prices.

?all of the above

(12)

Within the aggregate demand and supply model (AD-AS model), how does an economy adjust to an output beyond its long-run capacity as a result of an unanticipated increase in aggregate demand?

Group of answer choices

Wage rates and resource prices will fall, causing a decrease in aggregate demand and the restoration of equilibrium at a higher price level.

Long-run aggregate supply will increase, leading to a new equilibrium at a lower price level.

Resource prices and real interest rates will rise causing output to fall back to its long-run sustainable rate.

Lower real interest rates will stimulate demand and restore equilibrium at the initial price level.

(13)

If real GDP in Country A amounted to $1.62 trillion in 2019 and $1.71 trillion in 2018, the real GDP growth rate in this country in 2019 is:

Group of answer choices

5.26%

5.56%

2.47%

-5.26%

-5.56%