the economics of money, banking, and financial markets

750 $

© 2014 Pearson Canada Inc.$

18. 
    

    Everything else held constant, a change in workers' expectations about the inflation rate will
    cause ____ to change.
    A) aggregate demand
    B) short-run aggregate supply
    C) the production function
    D) long-run aggregate supply
    Answer: B
    Diff: 2 Type: MC Page Ref: 580
    Skill: Recall
    Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
    of aggregate output and the inflation rate

    
    


19. 
    

    A decrease in the availability of raw materials that increases the price level is called a
    ____ shock.
    A) unfavourable demand
    B) favourable demand
    C) unfavourable supply
    D) favourable supply
    Answer: C
    Diff: 2 Type: MC Page Ref: 581
    Skill: Recall
    Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
    of aggregate output and the inflation rate

    
    


20. 
    

    An unfavourable supply shock causes ____ to ____.
    A) aggregate demand; increase
    B) aggregate demand; decrease
    C) short-run aggregate supply; decrease
    D) short-run aggregate supply; increase
    Answer: C
    Diff: 2 Type: MC Page Ref: 581
    Skill: Recall
    Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
    of aggregate output and the inflation rate

    
    


21. 
    

    A favourable supply shock causes ____ to ____.
    A) aggregate demand; increase
    B) aggregate demand; decrease
    C) short-run aggregate supply; decrease
    D) short-run aggregate supply; increase
    Answer: D
    Diff: 2 Type: MC Page Ref: 581
    Skill: Recall
    Objective List: 24.1 Interpret the aggregate demand and supply framework for the determination
    of aggregate output and the inflation rate