Macroeconomics > EXAM > Sophia Macroeconomics Milestone 2 -Complete Questions and Answers | GRADED A+ (All)

Sophia Macroeconomics Milestone 2 -Complete Questions and Answers | GRADED A+

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Sophia Marcoeconomics Milestone 2 1 Select the TRUE statement below regarding aggregate supply in the short and long run. In the long run, there are no limits on production. The relationship betw ... een price level and RGDP is negative in the short run. The LRAS curve can move over time. In the long run, there is a close relationship between price level and RGDP. CONCEPT Aggregate Supply 2 Which graph below correctly illustrates a scenario in which the regular price for a set of four tires is $250, but Erin finds a store that has the tires she needs on sale for $175? CONCEPT Shifts in Demand 3 Which of the following would NOT cause a shift in the supply curve for cheese? The results of a medical study show that eating too much cheese can lead to premature aging. The price of feed for the dairy cattle goes up significantly. A celebrity chef develops a new technique for making cheese that makes it easier to increase output. Thousands of dairy cattle come down with a mysterious illness and need to be quarantined. CONCEPT Law of Supply 4 As the price level falls, people feel as if they have more money, so they spend more, which influences which of the following, in economic terms? Aggregate supply Interest rate effect Aggregate demand Exchange rate effect CONCEPT Aggregate Demand 5 If the price of gasoline is too low and vendors sell out quickly, which of the following will happen next? Consumers will purchase less gasoline. Consumers will purchase more gasoline. The price of gasoline will rise to eliminate the shortage. Producers will lower the price of gasoline. CONCEPT Prevailing Price 6 Which statement below best describes what will most likely happen, from an economic standpoint, when a music group with growing popularity goes on tour and sells out a certain venue in hours with tickets for $25 apiece? The group will add more performance dates with tickets at a lower cost. The price of tickets for future concert dates will rise until it hits equilibrium. Nothing changes, since the market is already clearing. The group will cancel the concert and give everyone a refund. CONCEPT Prevailing Price 7 The prevailing market price for smart TVs is $450 and John is willing to pay $600 for a TV. Which graph accurat [Show More]

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