7.A Investment spending A.responds more dramatically to changes in interest rates than to changes in business confidence, expectations, or technology. B.typically increases when the interest rate falls. C.does not respond to short-term interest rates. D.responds negatively to technical change and product innovation. 7.B Net exports in the United States A.will fall if prices in the United States rise relative to other nations' prices. B.will fall if China reduces trade barriers against the United States. C.will increase if prices in the United States rise relative to other nations' prices. D.will increase if the price level in China declines. 7.C In an Aggregate Demand (AD)/Aggregate Supply (AS) diagram, __________________________ could explain a rise in cyclical unemployment? A.a shift in AS to the left B.a shift in AS to the right C.a shift to the left in either AS or AD D.a shift of AD to the right

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7.A Investment spending A. responds more dramatically to changes in interest rates than to changes in business confidence, expectations, or technology. B. typically increases when the interest rate falls. C. does not respond to short-term interest rates. D. responds negatively to technical change and product innovation.

7.A Investment spending A. responds more dramatically to changes in interest rates than to changes in business confidence, expectations, or technology. B. typically increases when the interest rate falls. C. does not respond to short-term interest rates. D. responds negatively to technical change and product innovation.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 3.6P

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Between 2014 and 2015, the exports of the U.S. economy decreased by $5 billion and its imports increased by $5 billion. All else equal? By how much has the GDP changed between the two years? Select one: a. None of the answers are correct b. The change in net exports will increase GDP by $5 billion. c. The change in net exports will decrease GDP by $5 billion. d. The change in net exports will decrease GDP by $10 billion. e. The decrease in exports is offset by the decrease in imports, so there is no change in net exports and no effect on GDP.
2. Net exports are best defined as a. The difference between total exports and total imports b. Net Imports – Net Exports c. Economic output from a given year that is not consumed d. Y = C + I + G - NX e. None of the above
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1. The curves showing the various quantities of goods and services that domestic consumers, businesses, the government, and foreign buyers collectively want to buy, at each price level, establish that: a. the higher the price level, the lower the real GDP these buyers will acquire; therefore, the lower the price level, the lower the actual production they buy b. the lower the price level, the greater the real GDP that these buyers will acquire; therefore, the higher the price level, the higher the actual output they buy c. the lower the price level, the greater the real GDP that these buyers will acquire; on the contrary, the higher the price level, the lower the real production they buy d. the higher the price level, the greater the real GDP that these buyers will acquire; therefore, the lower the price level, the lower the actual production they buy 2. The quantity of labor supplied increases when the real wage increases by: a. the increase in the labor force participation rate and…
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A.	responds more dramatically to changes in interest rates than to changes in business confidence, expectations, or technology.
	B.	typically increases when the interest rate falls.
	C.	does not respond to short-term interest rates.
	D.	responds negatively to technical change and product innovation.

	A.	will fall if prices in the United States rise relative to other nations' prices.
	B.	will fall if China reduces trade barriers against the United States.
	C.	will increase if prices in the United States rise relative to other nations' prices.
	D.	will increase if the price level in China declines.

	A.	a shift in AS to the left
	B.	a shift in AS to the right
	C.	a shift to the left in either AS or AD
	D.	a shift of AD to the right