econ

Name: ___________________________ Class: _________________ Due Date: 11/15/2020

Assignment 6 ECON 002

1. If U.S. produced goods become more expensive than foreign-produced goods, imports will ________. At the same time, exports will ________.

a. decrease; decrease

b. increase; be unaffected

c. increase; decrease

d. decrease; increase

e. decrease; be unaffected

2. CNN.com runs a story reporting that the Consumer Confidence Index has risen. Having taken an economics class, you predict that spending in the economy will ________. At the same time, aggregate demand will ________.

a. decrease; increase

b. increase; increase

c. increase; remain the same

d. remain the same; decrease

e. decrease; remain the same

3. Which of the following would shift aggregate demand to the right?

a. A study predicts the recent drought will increase food prices this winter.

b. A drop in the price level increases saving and interest rates.

c. The value of the dollar decreases.

d. China enters a recession.

e. There is a drop in the median price of houses.

4. In the long run, the output of an economy

a. does not grow.

b. grows at a positive rate.

c. depends on aggregate demand.

d. is equal to full-employment output.

e. depends on the price level.

5. According to the textbook, which factor(s) shift the long-run output of an economy?

a. the level of government control

b. the level of unemployment

c. the level of inflation

d. the level of aggregate demand

e. resources, technology, and institutions