Personal Economics Practice Final

1

One timing problem in using fiscal policy to counter a recession is the "recognition lag" that occurs between the

1

A budget surplus means that

1

The financing of a government deficit increases interest rates and, as a result, reduces investment spending. This statement describes

1

Michelle transfers $4,000 from her savings account to her checking account. What effect is this change likely to have on M1 and M2?

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Refer to the diagram, in which T is tax revenues and G is government expenditures. All figures are in billions. The budget will entail a deficit

1

In the diagram, the economy's immediate-short-run AS curve is line ___, its short-run AS curve is _, and its long-run AS curve is line ___.

1

Stock market price quotations best exemplify money serving as a

1

A contractionary fiscal policy is shown as a

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The lag between the time that the need for fiscal action is recognized and the time action is actually taken is referred to as the

1

Other things equal, if the U.S. dollar were to depreciate, the

1

In the diagram, a shift from AS1 to AS2 might be caused by

1

Paper money (currency) in the United States is issued by the

1

An increase in expected future income will

1

Fiscal policy is enacted through changes in

1

If you write a check on a bank to purchase a used car, you are using money primarily as

1

The Federal Reserve System is divided into

1

The functions of money are to serve as a

1

The amount by which federal tax revenues exceed federal government expenditures during a particular year is the

1

The equilibrium price level and level of real output occur where

1

The real-balances, interest-rate, and foreign purchases effects all help explain

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The accompanying table gives budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt. The budget deficit in year 3 is

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The value of money varies

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The public debt is the

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The labels for the axes of the aggregate demand graph should be

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The amount of money reported as M2

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The foreign purchase effect suggests that an increase in the U.S. price level relative to other countries will

1

Refer to the diagram. Which tax system has the least built-in stability?

1

An economy's aggregate demand curve shifts leftward or rightward by more than changes in initial spending because of the

1

Other things equal, if the national incomes of the major trading partners of the United States were to rise, the U.S.

1

One timing problem in using fiscal policy to counter a recession is the "operational lag" that occurs between the

1

Which of the diagrams for the U.S. economy best portrays the effects of a decrease in the availability of key natural resources?

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Suppose that the economy is in the midst of a recession. Which of the following policies would most likely end the recession and stimulate output growth?

Only using this for personal use.

Personal Economics Practice Final

Personal Economics Practice Final

One timing problem in using fiscal policy to counter a recession is the "recognition lag" that occurs between the

A budget surplus means that

The financing of a government deficit increases interest rates and, as a result, reduces investment spending. This statement describes

Michelle transfers $4,000 from her savings account to her checking account. What effect is this change likely to have on M1 and M2?

Refer to the diagram, in which T is tax revenues and G is government expenditures. All figures are in billions. The budget will entail a deficit

In the diagram, the economy's immediate-short-run AS curve is line _____, its short-run AS curve is _____, and its long-run AS curve is line _____.

Stock market price quotations best exemplify money serving as a

A contractionary fiscal policy is shown as a

The lag between the time that the need for fiscal action is recognized and the time action is actually taken is referred to as the

Other things equal, if the U.S. dollar were to depreciate, the

In the diagram, a shift from AS1 to AS2 might be caused by

Paper money (currency) in the United States is issued by the

An increase in expected future income will

Fiscal policy is enacted through changes in

If you write a check on a bank to purchase a used car, you are using money primarily as

The Federal Reserve System is divided into

The functions of money are to serve as a

The amount by which federal tax revenues exceed federal government expenditures during a particular year is the

The equilibrium price level and level of real output occur where

In the diagram, the economy's immediate-short-run AS curve is line ___, its short-run AS curve is _, and its long-run AS curve is line ___.