1、Name: Class: Date: Chapter15-TheInfluenceofMonetaryandFiscalPolicyonAggregateDemand1. Whatisthedifferencebetweentheeffectsoffiscalpolicyandtheeffectsofmonetarypolicy? a. Monetarypolicycanaffectlong-termgrowthwhilefiscalpolicycannot. b. Fiscalpolicy
2、canaffecttheshort-termpricelevelwhilemonetarypolicycannot. c. Fiscalpolicycanaffectlong-termgrowthwhilemonetarypolicycannot. d. Monetarypolicycanaffecttheshort-termlevelofoutputwhilefiscalpolicycannot.ANSWER: c2. WhichstatementisNOTareasontheaggrega
3、te-demandcurveslopesdownward? a. Asthepricelevelincreases,realwagesdecline. b. Asthepricelevelincreases,realwealthdeclines. c. Asthepricelevelincreases,theinterestrateincreases. d. Asthepricelevelincreases,theexchangerateincreases.ANSWER: a3. Forthe
4、Canadianeconomy,whatistheleastimportantofthethreereasonsforthedownwardslopeoftheaggregate-demandcurve? a. wealtheffect b. interest-rateeffect c. exchange-rateeffect d. real-wageeffectANSWER: a4. Whichreasonforthedownwardslopeoftheaggregatedemandcurv
5、ewouldlikelybemoreimportantforasmallclosedeconomy? a. wealtheffect b. interest-rateeffect c. exchange-rateeffect d. real-wageeffectANSWER: b5. WhichstatementdoesNOTaccuratelyexplaintheslopeoftheaggregate-demandcurve? a. Wheninterestratesfall,Sleepwe
6、llHotelsdecidestobuildsomenewhotels. b. Theexchangeratefalls,soFrenchrestaurantsinParisbuymoreCanadianbeef. c. Janetfeelswealthierbecauseofthepricedrop,soshedecidestolandscapeherbackyard. d. Withpricesdownandwagesfixedbycontract,SafeWellServicingdeci
7、destolayoffworkers.ANSWER: d6. Thewealtheffecthelpsexplainthedownwardslopeoftheaggregate-demandcurve.Howimportantisthiseffectandwhy? a. ItisrelativelyimportantinCanadabecauseexpendituresonconsumerdurablesisveryresponsivetochangesinwealth. b. Itisrel
8、ativelyimportantinCanadabecauseconsumptionspendingisalargepartofGDP. c. ItisrelativelyunimportantinCanadabecausemoneyholdingsareasmallpartofconsumerwealth. d. ItisrelativelyunimportantinCanadabecauseittakesalargechangeinwealthtomakeasignificantchange
