Hi was studying for final exam and just bit confusing about these questions !! Q

Question

Hi was studying for final exam and just bit confusing about these questions !!

Q1) In the macroeconomy, deteriorating economic conditions could be due to:

1. decreases in spending on factories, housing and inventories

2. consumers buying too much on credit
3. increases in investment spending
4. decreases in the national debt

Q2) If the government decides to increase expenditure on public transportation, there will be:

1. no effect on the aggregate-demand curve
2. A movement along the aggregate demand curve
3. A shift of the aggregate demand curve to the left
4. A shift of the aggregate demand curve to the right
5. A shift of the aggregate supply curve

Q3) The classical dichotomy refers to the separation of:

1. Real and nominal variables
2. Predictable and unpredictable variables
3. Monetary and fiscal variables
4. Endogenous and exogenous variables

Q4) The aggregate-demand curve shows:

1. The quantity of goods and services that households want to buy at any income level

2. The quantity of goods and services that households, firms and government want to buy at any income level

3. The quantity of goods and services that households, firms and government want to buy at any price level

4. The quantity of goods and services that households want buy at any price level

Q5) According to the RBA, resources sector investment spending is set to decline significantly. If resources instead became more productive:

1. the short run aggregate supply curve is not affected but the long run aggregate curve shifts

2. the aggregate demand curve shifts

3. both the short run and the long run aggregate supply curves shifts

4. neither the short run aggregate curve nor the long run supply curve shifts

2. the aggregate demand curve shifts

3. both the short run and the long run aggregate supply curves shifts

4. neither the short run aggregate curve nor the long run supply curve shifts

Explanation / Answer

Q1) In the macroeconomy, deteriorating economic conditions could be due to:

1. decreases in spending on factories, housing and inventories

2. consumers buying too much on credit
3. increases in investment spending
4. decreases in the national debt

Q2) If the government decides to increase expenditure on public transportation, there will be:

1. no effect on the aggregate-demand curve
2. A movement along the aggregate demand curve
3. A shift of the aggregate demand curve to the left
4. A shift of the aggregate demand curve to the right
5. A shift of the aggregate supply curve

Q3) The classical dichotomy refers to the separation of:

1. Real and nominal variables
2. Predictable and unpredictable variables
3. Monetary and fiscal variables
4. Endogenous and exogenous variables

Q4) The aggregate-demand curve shows:

1. The quantity of goods and services that households want to buy at any income level

2. The quantity of goods and services that households, firms and government want to buy at any income level

3. The quantity of goods and services that households, firms and government want to buy at any price level

4. The quantity of goods and services that households want buy at any price level

Q5) According to the RBA, resources sector investment spending is set to decline significantly. If resources instead became more productive:

1. the short run aggregate supply curve is not affected but the long run aggregate curve shifts

2. the aggregate demand curve shifts

3. both the short run and the long run aggregate supply curves shifts

4. neither the short run aggregate curve nor the long run supply curve shifts

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