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ECON-1012-B-Introduction to Macroeconomics

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Short Description: A set of four graph of price level versus real G D P. Long Description: The vertical axis of each graph is labelled, price level and the horizontal axis is labelled, real G D P. The graph are as follows.(a) The line for S A S slopes upward from the lower left corner to the upper right corner. The line for A D slopes downward from the upper left corner to the lower right corner, intersecting the lines for S A S. The line for L A S is a vertical line from a point on the horizontal axis. The line intersect the lines for S A S and A D right to their point of intersection.(b) The line for S A S slopes upward from the lower left corner to the upper right corner. The line for A D slopes downward from the upper left corner to the lower right corner, intersecting the lines for S A S. The line for L A S is a vertical line from a point on the horizontal axis. The line intersect the lines for S A S and A D at their point of intersection. (c) The line for S A S slopes upward from the lower left corner to the upper right corner. The line for A D slopes downward from the upper left corner to the lower right corner, intersecting the lines for S A S. The line for L A S is a vertical line from a point on the horizontal axis. The line intersect the lines for S A S and A D left to their point of intersection.(d) The line for S A S slopes upward from the lower left corner to the upper right corner. The line for A D slopes downward from the upper left corner to the lower right corner, intersecting the lines for S A S. The line for L A S is a vertical line from a point on the horizontal axis. The line intersect the lines for S A S and A D left to their point of intersection.

Figure 10.3.3

Refer to Figure 10.3.3, which shows the AS-AD model in which an economy is in four possible short-run macroeconomic equilibrium. In which of the graphs is the economy at a below full-employment equilibrium?
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Short Description: A set of four graph of price level versus real G D P. Long Description: The vertical axis of each graph is labelled, price level and the horizontal axis is labelled, real G D P. The graph are as follows.(a) The line for S A S slopes upward from the lower left corner to the upper right corner. The line for A D slopes downward from the upper left corner to the lower right corner, intersecting the lines for S A S. The line for L A S is a vertical line from a point on the horizontal axis. The line intersect the lines for S A S and A D right to their point of intersection.(b) The line for S A S slopes upward from the lower left corner to the upper right corner. The line for A D slopes downward from the upper left corner to the lower right corner, intersecting the lines for S A S. The line for L A S is a vertical line from a point on the horizontal axis. The line intersect the lines for S A S and A D at their point of intersection. (c) The line for S A S slopes upward from the lower left corner to the upper right corner. The line for A D slopes downward from the upper left corner to the lower right corner, intersecting the lines for S A S. The line for L A S is a vertical line from a point on the horizontal axis. The line intersect the lines for S A S and A D left to their point of intersection.(d) The line for S A S slopes upward from the lower left corner to the upper right corner. The line for A D slopes downward from the upper left corner to the lower right corner, intersecting the lines for S A S. The line for L A S is a vertical line from a point on the horizontal axis. The line intersect the lines for S A S and A D left to their point of intersection.

Figure 10.3.3

Refer to Figure 10.3.3, which shows the AS-AD model in which an economy is in four possible short-run macroeconomic equilibrium. In which of the graphs would we predict that eventually the price level will fall and real GDP will increase, everything else remaining the same?
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Short Description: A graph of price level versus real G D P. Long Description: The vertical axis is labelled, price level (G D P deflator, 20 12 = 100) and ranges from 90 to 130 in increments of 10 with a kink near the origin. The horizontal axis is labelled, real G D P (trillions of 20 12 dollars) and ranges from 12.0 to 14.0 in increments of 0.50 with a kink near the origin. The line for S A S slopes upward from the lower left corner to the upper right corner passing through the points A (13.0, 100) and B (13.5, 110). The line for A D0 slopes downward from the upper left corner to the lower right corner, passing through the point A (13.0, 100). The line for A D1 slopes downward from the upper left corner to the lower right corner, parallel to the line for A D0 on the right and passing through the point B (13.5, 110).

Figure 10.3.4

Refer to Figure 10.3.4, which shows the AS-AD model. Which of the following events might have shifted the aggregate demand curve from AD0 to AD1?
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Table 10.3.1

The three columns of the table are titled Price level (2012 = 100), and real GDP demanded and real GDP supplied in billions of 2012 dollars. The rows display the data as follows: 100; 800; 300110; 700; 400120; 600; 500130; 500; 600140; 400; 700

Refer to Table 10.3.1, which shows the aggregate demand and aggregate supply schedules. If potential GDP is $600 billion, which of the following outcomes describes this economy?
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Which of the following newspaper quotations describes a leftward shift of the LAS curve?
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Table 10.3.1

The three columns of the table are titled Price level (2012 = 100), and real GDP demanded and real GDP supplied in billions of 2012 dollars. The rows display the data as follows: 100; 800; 300110; 700; 400120; 600; 500130; 500; 600140; 400; 700

Refer to Table 10.3.1, which shows the aggregate demand and aggregate supply schedules. At which pice level and real GDP does short-run macroeconomic equilibrium occur?

The price level is ________ and real GDP is ________ billion.
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Which of the following variables is a monetary policy instrument used by the Bank of Canada?
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How is consultation between the Bank of Canada and the Government of Canada on monetary policy arranged? 
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Why does the Bank increase the overnight rate when the economy experiences inflation?

The higher overnight rate results in
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What is the distinction between limited reserves and ample reserves?

Limited reserves are ________, and ample reserves ________ that quantity.
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