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Unit 3 Bell ringers
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Questions in this quiz (28)
1If the marginal propensity to consume increased from 0.5 to 0.76 the simple spending multiplier and marginal propensity to save (MPS) would change in which of the following ways?
Multiplier MPS- AIncrease increase
- BIncrease decrease
- CNo change decrease
- DDecrease increase
2A decrease in taxes will necessarily result in an increase in which of the following?
- Anominal gross domestic product
- BMarginal propensity to save
- Cmoney supply
- Dunemployment
3The marginal propensity to consume is
- A0.80
- B0.20
- C0.75
- D0.50
4All of the following changes will shift the investment demand curve to the right except
- Aa decrease in the corporate income tax rate
- Ban increase in the productivity of new captial good
- Can increase in the real interest rate
- Dan increase in corporate goods
5As an indicator of the impending recession, inventories will most likely
- Adecrease as a result of a decrease in consumption
- Bincrease as a result of a decrease in consumption
- Cincrease as a result of a decrease in aggregate supply
- Ddecrease as a result of an increase in aggregate supply
6In an economy with lump sum taxes and no international trade, if the marginal propensit to consume is 0.8, which of the following is true?
- Awhen consumption increases by $5, investment increases by a maximum of $1
- BWhen consumption increase by $5 and savings increase by a maximum of $1
- Cwhen investment increase $1 and national income increase by a max of $5
- Dwhen investment increase by $1 consumption increases by a maximum of $5
7If the government increases expenditures on goods and services and increases taxation by the same amount, which of the following will occur ?
- AAggregate demand will be unchanged
- Baggregate demand will increase
- Cthe money supply will decrease
- Dthe money supply will increase
8Aggregate demand may be measured by adding
- Aconsumption, investment, saving and imports
- Bsavings, government spending and business inventories
- Cconsumption, investment, government spending and net exports
- Ddomestic private, expenditures and government
9which of the following changes would cause an economys aggregate demand curve to shift to the right?
- Aan increase in spending on imports
- Ban increase in autonomous consumption spending
- Can increase in interest rates
- Da decrease in the money supply
10An increase in which of the following would cause the aggregate demand curve to shift to the left
- Aconsumer optimism
- Bcost of resources
- Cincome taxes
- Dnet exports
- Epopulation
11an increase in which of the following will increase aggregate demand
- Athe federal funds rate
- Bgovernment spending
- Creserve requirements
- Dthe discount rate
- Etaxes
12the aggregate demand curve is downward sloping because as the price level increases the
- Apurchasing power of wealth decrease
- Bdemand for imports decrease
- Cdemand for interest sensitive expenditures increases
- Ddemand for domestically produced substitute good increases
- Ereal value of fixed assets increases
13if an economys aggregate supply curve is upward sloping an increase in government spending will most likely result in a decrease in the
- Areal level of output
- Bunemployment rate
- Cgovernments budget deficit
- Dprice level
- Einterest rate
14In an economy with lump sum taxes and no international trade, autonomous investment spending increases by $2 million. if the marginal propensity to consume is 0.75, equilibrium gross domestic product will change by a maximum of
- A$o.5 million
- B$1.5 million
- C$2.0 million
- D$8.0 million
- E$15.0 million
15Assume that janes marginal propensity to consume equals 0.8, and that in 2014 she spent $36,000 from her disposable income of $40,000. if her disposable income in 2005 increased to $50,000, her consumption spending increased by
- A$4,000
- B$8,000
- C$9,000
- D$10,000
- E$14,000
16according to the income and consumption schedules shown above, the marginal propensity to consume is
- A1.33
- B0.90
- C0.80
- D0.75
17a hgih marginal propensity to consume implies which of the following
- Aa small change in consumption when income changes
- Ba high savings rate
- Ca high marginal tax rate
- Da low marginal propensity to save
18Under which of the following conditions would consumer spending most likely increase ?
- Aconsumers have large unpaid balances on their credit cards
- Bconsumers wealth is increased by changes in the stock market
- Cthe government encourages consumers to increase their savings
- Dsocial security taxes are increased
- Econsumers believe they will not receive pay increases next year
19An increase in which of the following would cause an increase in aggregate supply?
- AThe wage rate
- Bconsumer spending
- Cprice of imports
- Dlabor productivity
- Einterest rates
20Based on the diagram what effect will an increase in the world supply of oil have on real GDP and the price level?
rGDP Price Level
- Aincrease decrease
- Bdecrease increase
- Cdecrease decrease
- Dincrease increase
21ID AD and AS represents aggregate demand and supply curves respectively and the arrows indicate the movement of the curves which of the following graphs best illustrates long run economic growth?
- A
- B
- C
- D
- A
22Assume that the economy is at full employment equilibrium in the diagram shown above. which of the following would lead to stagflation?
- Aa leftward shift of the SRAS curve only
- BA rightward shirt of the SRAS curve only
- Ca leftward shift of the AD curve only
- Da rightward shift of the AD curve only
23According to the graph which of the following is true about the long run equilibrium of the economy depicted ?
- AAs wages increase, the SRAS curve will shift to the left to restore long run equilibrium
- BThe economy is in long run equilibrium
- Cthe AD curve will shift to the left to restore long run equilibrium
- DThe LRAS curve will shift to the right to restore long run equilibrium
24An increase in the price of a key input will cause the aggregate demand curve and the short run aggregate supply curve to change in which of the following ways ?
AD curve AS curve- Ashift to the right; shift to the right
- Bshift to the left; shift to the left
- Cshift to the left; no change
- Dno change; shift to the left
25An increase in net investment leads to faster economic growth because capital per worker and output per worker will change in which of the following ways?
Capital per worker Output per worker- AIncrease increase
- Bincrease decrease
- Cno change increase
- Ddecrease increase
26An increase in which of the following would be most likely to increase long run growth ?
- Apension payments
- Bunemployment compensation
- Ctariffs on imported oil
- Dtariffs on imported capital goods
- ESubsidies to businesses for purchases of capital goods
27An unanticipated decrease in aggregate demand when the economy is in equilibrium will result in
- Aincrease in unplanned inventories
- Ba decrease in the natural rate of unemployment
- Can increase in the rate of inflation
- Da decrease in aggregate supply
28The classical economist argued that involuntary unemployment would be eliminated by
- Aself correcting market forces stemming from flexible prices and wages
- Bincreasing the money supply to stimulate investment spending
- Cmaintaining the growth of the money supply at a constant rate
- Dincreasing government spending to increase aggregate demand
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- Description
- 12th grade Macroeconomics Quiz on Unit 3 Bell ringers , created by Renee Germani on 06/03/2018.
- Author
- Renee Germani
- Language
- English
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