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1Equilibrium GDP on the demand side occurs when total spending
- Aequals total production, and inventories are zero.
- Bequals total production, and firms are unable to adjust inventories.
- Cexceeds total production, and inventories are rising.
- Dequals total production, and inventories remain at desired levels.
- Eis less than total production, and inventories are falling.
2The expenditure schedule will shift upward when
- Anet exports decrease.
- Bnet exports increase.
- Ctotal imports increase.
- Dtotal exports decrease.
3If total spending exceeds total output, then
- Ainventory levels will rise.
- Binventory levels will remain constant.
- Cinventory levels will fall.
- Doutput will eventually decrease.
4The aggregate demand curve
- Aslopes upward.
- Bslopes downward.
- Cis perfectly vertical.
- Dis perfectly horizontal.
5In the income-expenditure model, at equilibrium GDP
- Aeither unemployment or inflation may occur.
- Binflation can occur but unemployment cannot.
- Cunemployment can occur but inflation cannot.
- Dboth unemployment and inflation are impossible.
6John Maynard Keynes concluded that investment spending is determined by
- Abusiness confidence.
- Beconomic expectations.
- Cpsychological perceptions about the economy.
- DAll of the above are correct.
7Government stabilization policy
- Acannot influence investment spending
- Bcan stimulate aggregate demand and thereby induce businesses to invest, but the amount is
not totally predictable. - Ccan stimulate aggregate demand, but investment spending will not be affected.
- Dcan stimulate aggregate demand, but only in the long run.
8Given the slope of the aggregate demand curve, real GDP demanded will decrease when
- Areal income rises.
- Breal income falls.
- Cthe price level falls.
- Dthe price level rises.
9A level of GDP cannot be at equilibrium when aggregate demand exceeds output because firms will notice that
- A inventory stocks are building up.
- Binventory stocks are being depleted.
- Ctheir profits are negative.
- Dmany of their workers have little to do.
1045° line diagrams show how
- Ainvestment varies with income.
- Bexpenditures vary with income.
- Cinvestment spending rises when GDP rises.
- DGDP is affected by government purchases.
11Writing during the Great Depression, Keynes naturally focused on problems of
- Ahyperinflation.
- Bbudget deficits.
- Ctrade deficits.
- Dunemployment
12At the equilibrium level of income it must be true that total
- Aincome equals total spending.
- Bproduct equals total output.
- Coutput equals total inventory.
- Dincome equals total saving.
- Aincome equals total spending.
13When equilibrium real GDP falls short of potential GDP, there is a(n)
- Ainflationary gap.
- Bpotential gap.
- Crecessionary gap.
- Dprecautionary gap.
- Ainflationary gap.
14In the circular flow diagram saving
- Ais a leakage and investment is an injection.
- Band investment are both injections.
- Cis an injection and investment is a leakage.
- Dand investment are both leakages.
- Ais a leakage and investment is an injection.
15In the 2007-2009 period, the expenditure level in the United States intersected the 45-degree line below potential GDP, causing
- Ahyperinflation.
- Ba growing trade deficit.
- Ca government budget surplus.
- Dunemployment.
16A rising price level should shift the expenditure schedule
- Aupward and decrease equilibrium real GDP .
- Bdownward and increase equilibrium real GDP .
- Cdownward and decrease equilibrium real GDP .
- Dupward and increase equilibrium real GDP .
- Aupward and decrease equilibrium real GDP .
17When businesses are cutting back production, then it probably true that
- Atotal spending is greater than total output.
- Btotal output is greater than total income.
- Ctotal spending is less than total output.
- Dinventory levels are decreasing.
- Atotal spending is greater than total output.
18Each C + I + G + (X − IM) expenditure schedule is drawn assuming a specific
- Aincome level.
- Bspending level.
- Cproduction level.
- Dprice level.
- Aincome level.
19The federal government could stimulate investment spending by
- AA) phasing out the depreciation allowance on corporate income taxes.
- BB) enacting an investment tax credit.
- CC) reinstating the windfall profits tax.
- DD) reducing the tax rate on capital gains.
- EE) Both b and d are correct.
20If the price level rises, the effect on the expenditure schedule and equilibrium real GDP is to
- Aincrease both.
- Bdecrease both.
- Cshift the expenditure schedule upward and decrease equilibrium real GDP.
- Aincrease both.
21Stagflation" refers to the unwelcome combination of
- Ainflation and rising prices.
- B deflation and unemployment.
- Cinflation and unemployment.
- D inflation and expansion.
- Ainflation and rising prices.
22 To calculate a firm's per unit of output profit, it is necessary to subtract
- Aprice from cost per unit.
- Bprice from resource costs.
- Ccost per unit from product price.
- Dcost per unit from cost of resources.
- Aprice from cost per unit.
23 Increases in the availability of natural resources will affect the aggregate supply curve such that it
- Ashifts inward and becomes flatter.
- Bshifts inward.
- Cshifts outward.
- Dbecomes flatter.
- Ebecomes steeper.
- Ashifts inward and becomes flatter.
24In contrast to changes in government spending, tax changes affect spending
- Adirectly.
- Bin the same proportion.
- Cby a greater amount.
- Dindirectly.
- Adirectly.
25How does a tax cut affect the expenditure schedule?
- AIt causes movement to the left along the schedule.
- BIt causes the schedule to shift upward.
- CIt causes movement to the right along the schedule.
- DIt causes the schedule to shift downward.
- AIt causes movement to the left along the schedule.
26How will a cut in a fixed tax affect the consumption schedule?
- AIt will shift downward.
- BIt will shift upward.
- CIt will become flatter.
- DIt will become steeper.
- AIt will shift downward.
27In 2009, President Obama and Congress stimulated aggregate demand by
- Aincreasing taxes and government spending.
- Bdecreasing taxes and government spending.
- Cincreasing taxes and decreasing government spending.
- Ddecreasing taxes and increasing government spending.
- Aincreasing taxes and government spending.
28For conservatives, the United States needs
- Aan expanded public sector to protect consumers.
- Ba smaller public sector and less regulation.
- Ca larger tax rate and more government spending.
- Dmore public goods and services, such as national health care.
- Aan expanded public sector to protect consumers.
29 The slope of the aggregate supply curve increases as output increases because
- Athe cost of resource-use increases as potential is reached.
- B consumers are willing to pay more as output expands.
- Cfirms substitute capital for labor as prices increase.
- Dfirms substitute capital for labor as capacity is reached.
- Athe cost of resource-use increases as potential is reached.
30"Fiscal Policy" is the federal government's plan for
- Ainternational trade, designed to balance exports and imports.
- Bspending and taxes, designed to influence the level of aggregate demand.
- Cmanipulating the money supply and the control of interest rates.
- DAll of the above are correct.
- Ainternational trade, designed to balance exports and imports.
31 If the price level in Figure below were 120,
- Athere would be excess goods on the market.
- Bfirms would have to raise their prices.
- C inventories would be disappearing.
- Daggregate quantity demanded would exceed aggregate quantity supplied.
- Athere would be excess goods on the market.
32When government spending is added to the basic macroeconomic model, the multiplier for G would
- Abe higher than the multiplier for autonomous spending.
- B be lower than the multiplier for autonomous spending.
- C be equal to the multiplier for autonomous spending.
- Dhave no relationship to the autonomous spending multiplier.
- Abe higher than the multiplier for autonomous spending.
33An increase in wages will cause the aggregate supply curve to
- Ashift outward.
- Bshift inward.
- Cbecome flatter.
- Dbecome steeper.
- Ashift outward.
34If wealthy U.S. consumers save most of their tax cut, this means that, compared to government spending changes,
- Atax changes would have a higher multiplier effect.
- Btax changes would have a weaker multiplier effect.
- Cgovernment spending would have a weaker multiplier effect.
- DU.S. consumers would spend all of their tax cut.
- Atax changes would have a higher multiplier effect.
35The existence of an inflationary gap or an recessionary gap depends on the
- Aaggregate supply only.
- Bexpenditure schedule.
- Cleakages schedule.
- Dinjections schedule.
- Eaggregate demand and aggregate supply schedules.
- Aaggregate supply only.
36In 2009, the U.S. economy was experiencing a(n)
- Arecessionary gap.
- Binflationary gap.
- Cbalance of trade deficit.
- Dhyperinflation.
- Arecessionary gap.
37To eliminate an inflationary gap, the aggregate demand curve should
- Ashift outward.
- Bbecome vertical.
- Cbecome horizontal.
- Dshift inward.
- Ashift outward.
38If resource prices are fixed and the selling price rises, then
- Aprofits will decrease.
- Bprofits will increase.
- Cprofits will remain constant.
- Dboth profits and output will decrease.
- Aprofits will decrease.
39 Economists generally assume that there is a short-run trade-off between
- Aoutput and employment.
- B inflation and employment.
- C deflation and unemployment.
- D inflation and unemployment.
- E output and growth.
- Aoutput and employment.
40The slope of the aggregate supply curve is
- Aperfectly vertical.
- Bperfectly horizontal.
- C upward.
- D downward.
- Aperfectly vertical.
41The president has influence on Federal Reserve policy because
- A he can veto any Fed policy.
- B he appoints the board members and the chair.
- Che can fire the chair.
- Dhe can replace board members at any time.
- A he can veto any Fed policy.
42If the Fed buys a T-bill from a commercial bank, how will it pay for the T-bill?
- A It will give the bank new reserves.
- BIt will write the bank a check.
- CIt will transfer cash to the bank's vault.
- D It will take reserves from another bank.
- A It will give the bank new reserves.
43Technically, the Federal Reserve district banks are corporations whose stockholders are the
- Astate governments in each district.
- B citizens of the United States.
- C Departments of Treasury and Commerce.
- Dmember banks.
- Astate governments in each district.
44The Federal Open Market Committee meets
- Aonce a month.
- Beight times a year.
- Cfour times a year.
- Dsemi-annually.
- Aonce a month.
45Agraria sends wheat to Cyberia in exchange for computers and technology goods. This is an example of
- Aunidirectional trade.
- B joint venture.
- C barter.
- Dmonetary exchange.
- Aunidirectional trade.
46The principal difference between income and money is that income is a ____ and money is a ____.
- Aschedule, curve
- Bpoint, line
- Cstock, flow
- D flow, stock
- Aschedule, curve
47The Federal Open Market Committee consists of
- Athe president and the Board of Governors.
- B Congresspeople, Senators, and the Board of Governors.
- Cthe Secretary of the Treasury and the Board of Governors.
- D the Board of Governors and five district bank presidents.
- Athe president and the Board of Governors.
48The immediate impetus for the establishment of the Federal Reserve System came from
- Asevere outbreaks of inflation in the early 1900s.
- Bfour severe banking panics between 1873 and 1907.
- Cthe discovery of gold in Alaska.
- Dthe desire to copy the founding of the Bank of England.
- Asevere outbreaks of inflation in the early 1900s.
49Nowadays, most observers believe that monetary policy
- Ais less important than fiscal policy.
- B is more important than fiscal policy.
- Cand fiscal policy are equally important.
- D and fiscal policy are both unimportant.
- Ais less important than fiscal policy.
50The central bank of the United States is known as the
- AInternal Revenue Service.
- B Federal Reserve System.
- CFederal Deposit Insurance Corporation.
- DDepartment of Commerce.
- AInternal Revenue Service.
51Agraria uses bushels of wheat to quote prices. In this case, bushels of wheat act as a
- Amedium of exchange.
- Bstore of value.
- Ccommodity value.
- Dunit of account.
- Amedium of exchange.
52One advantage of a money system compared to a barter system is that
- Abarter never works.
- B money creates the need for banks.
- C money is more efficient.
- Deveryone has money.
- Abarter never works.
53 Critics of Fed independence argue that
- Amonetary policy and fiscal policy are necessarily inconsistent.
- B political control ensures low rates of inflation.
- Cmonetary policy run by specialists is inherently inflationary.
- Dunelected officials are undemocratic.
- Amonetary policy and fiscal policy are necessarily inconsistent.
54 Fiat money is money
- Abacked by land.
- Bbacked by gold or silver.
- C that can be converted to gold or silver.
- Dbecause a government says it is.
- Abacked by land.
55Which of the following is included in M1?
- Asavings accounts
- B money market deposit accounts
- C money market mutual funds
- Dcertificates of deposit
- ENone of the above are included.
- Asavings accounts
56Fiat money is
- Aalways backed by gold or silver.
- Buseful in buying Italian cars.
- C only backed by government decree.
- D not as liquid as precious metals.
- Aalways backed by gold or silver.
57Barter is a system of
- A trade without the use of money.
- B trading one good for another.
- C the double coincidence of wants.
- D All of the above are correct.
58People are often heard saying, "She makes good money." An economic interpretation of this statement would be that
- Ashe has an honest job.
- B she makes money that is not counterfeit.
- C she has a high income.
- D there is little inflation.
- Ashe has an honest job.
59 The primary feature of money is that it serves as
- A barter value.
- Ba medium of exchange.
- Cintrinsic value.
- D commodity value.
- A barter value.
60If depositors become worried about the safety of their deposit accounts, they may trigger a
- Adeposit surplus.
- B bank run.
- Cfiscal policy crisis.
- Drequired reserve increase.
- Adeposit surplus.
Informações
- Descrição
- All reading quizzes combined
- Autor
- Taylor Morris
- Idioma
- English
- Visualizações
- 147
- Etiquetas
- Avaliação
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