Welcome to...
A Game of X’s and O’s
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Scoreboard
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X
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O
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Click Here if
X Wins
Click Here if
O Wins
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1
An increase in labour productivity shifts
which curve and in what direction?
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Aggregate supply curve to the
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right.
2
Since the AS curve always has a vertical section,
any increase in aggregate demand will result in an
increase in the price level. True or false?
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False; an increase in AD in the Keynesian
range will not result in an increase in the
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price level.
3
A national catastrophe reduces the economy’s
productive capacity. Which curve shifts and in
what direction?
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The aggregate supply curve shifts to the
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left.
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In the intermediate range, a shift of AD to
the right causes what for the price level,
unemployment, and real output?
4
Price level increases
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Unemployment decreases
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Aggregate demand and supply fall under
which economic theory – macroeconomic
or microeconomic theory?
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Macroeconomic theory.
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6
The ratio of the change in taxes to the
change in income is called the
_____ _____ ______
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Marginal tax rate
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7
What two main policies are used by the
government to affect aggregate expenditure and
therefore shift aggregate demand?
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Fiscal policy and monetary policy.
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8
During stagflation, shifting Aggregate
Demand does more harm than good. What
can be done instead?
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Shift Aggregate Supply to the right.
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An improvement in technology that
improves productivity shifts which curve
and in which direction?
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Aggregate supply shifts to the right.
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