chapter 6
chapter 7
chapter 8
misc 1
misc 2
100
b) output
when a firm self an item to a purchaser GDP adds this to a) investment b) output c) income approach d) monetary value
100
a) SRAS will increase
the government reduces regulations on firms, this means that a) SRAS will increase b) this would decrease resource demand c) this would affect the I component of Aggregate demand d) would cause a stagflation gap
100
c) .75
For your christmas, you receive 300 dollars from your parents. With this new added income, you save 75 dollars. calculate the MPC a) .25 b) 250 c) .75 d) 4
100
d) increasing inventory
which one of there is a part of the expenditure approach a) supplemental healthcare provided by an employer b) income paid to the owner of a resource c) interest paid to the owners of capital d) increasing inventory
100
d to the left of the equilibrium of aggregate expenditures
In the Planned expenditures schedule, where is the expansion gap located at? a) at the intersection of the income product schedule and Planed expenditures b) located to the right of equilibrium of aggregate expenditures c) in an inflation gap d) to the left of the equilibrium of aggregate expenditures
200
household purchases of a car through craigslist
which of these is not a success of GDP a) GDP indicates whether an economy is expanding or contracting b) firms increasing their investments into capital c) household purchases a car through craiglist d) government pays off 10% of the national debt
200
d) there is an unexpected increase in firms inventory
if Inflation and RDGP are both decreasing, then a) household consumption has increased b) the price of oil has increased c) the FRB has decreases short term interest rates d) there is an unexpected increase in firms inventory
200
a) 30 trillion
you have 2.5 trillion in autonomous expenditures, the government adds .5 trillion and the maps is at .9, calculate the planned expenditures a) 30 trillion b) 3.33 trillion c) 15 trillion d) 1.5 trillion
200
b) there are incremental price increases over time
If put in nominal terms, GDP will appear larger because a) taxes raise the price b) there are incremental price increases over time c) interest rates in the Loanable Funds market increase d) it is set in real terms
200
a) price and RGDP would increase
If consumer confidence and real wealth were to increase, what would most likely happen a) price and RGDP would increase b) price would increase and RGDP would decrease c) a favorable gap would happen d) inventories would unexpectedly increase
300
a) increase real wages actually decrease real wages
Inflation does all of the following except a) increase real wages b) increase market value of goods and services c) make GDP look larger d) causes GDP to constantly rise
300
a) decrease income
a decrease in short run aggregate supply would a) decrease income b) decrease prices c) cause a recession gap d) shift to the right
300
b) a rightward shift along the planned expenditures
If the government increases purchases of public goods this will cause a) the income-product schedule to shift to the right b) a rightward shift along the planned expenditures c) marginal taxes to increase d) cause a change in slope of the Planned expenditures
300
c) a recession gap
As inventories unexpectedly build, there is a decrease in capital and inventory purchases. this results in a) AD shifts to the right b) price increases and quantity demanded decreases c) a recession gap d) a favorable gap
300
c) .4 trillion
the current economy is at 8 trillion with autonomous expenditures at 1.6 and marginal taxes at .8. what does G have to add to get the economy to 10 trillion a) 2 trillion b) 4 trillion c) .4 trillion d) .8 trillion
400
b) .1
Nominal GDP of 9 was $13,939 (in billions) and its RGDP came in at $12,703. How much inflation took place? a) $1,236 b) .1 c) 1.1 d) 109.7
400
d) stagflation gap
the government imposed a new legal minimum wage, raising the pay level from $8.00 to $9.00 an hour. What gap is the economy in? a) favorable gap b) inflation gap c) recession gap d) stagflation gap
400
d) a decrease in planned expenditures
property taxes increased, causing a) an increase of the vertical intercept of aggregate expenditures b) a decrease in the expenditure multiplier c) change the slope of the planned expenditures d) a decrease in planned expenditures
400
a) unemployment may decrease
all of these are outcomes of a recession gap except a) unemployment may decrease b) transfer payments may increase c) aggregate quantity supplied will decrease d) decrease investments into capital
400
c) production of Hondas in Fresno, CA
GNP measures all of the following except a) local coffee roasters income b) GM production of cars in Germany c) production of Hondas in Fresno, CA d) growing of local vegetables sold in the farmers market
500
b) GNP
Japanese company toyota is producing at a plant in Long Beach, CA. this is best represented in a) capital inflows b) GNP c) exports d) net domestic product
500
b) decrease in quantity demanded
a decrease in aggregate demand would result in all of the following except a) decrease in price b) decrease in quantity demanded c) decrease in quantity supplied d) decrease in RGDP
500
c) add .4 trillion in capital purchases
We have an economy a total mpc of .8 and a total of 12 trillion in planned expenditures. How much would firms have to add to autonomous expenditures to take this economy from 12 trillion to 14 trillion a) increase I by 2 trillion b) decrease taxes on firms c) add .4 trillion in capital purchases d) add 2.8 trillion in autonomous expenditures
500
b) a recession gap
The GDY of our TPA’s decreases, this will result in a) Increase household consumption b) A recession gap c) Shift to the right of AD d) Increased participation of the labor force
500
d) decreased value of a piece of capital over a certain period
Depreciation may be described as a) value added taken into account in GDP b) subtracting the capital consumption adjustment from GDP c) barter or trade d) decreased value of a piece of capital over a certain period
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