Trang chủ 23. Test - Economics - No 19





In the basic Keynesian model of income determination, aggregate expenditures refer to

Starting with initial long-run equilibrium in the goods and services market (the AD/AS diagram), the

Short-run effect of a sudden decrease in optimism about future business conditions will be a(n)



Starting from an initial long-run equilibrium at full employment, an unanticipated shift to more

Expansionary fiscal or monetary policy would tend to increase



If the central bank wishes to increase output, it would attempt to ________ the money supply by

________ short-term interest rates.



Which of the following is the best definition of money?

If a budget deficit leads to an increase in U.S. real interest rates, the higher rates will tend to cause

Which of the following statements is true?

I. During periods of inflation, decision makers with adaptive expectations will systematically

Underestimate future inflation.

II. During periods of dysinflation, decision makers with rational expectations will systematically

Underestimate future inflation.



A change in which of the following would cause the long-run aggregate supply curve to shift?

I. Quantity of resources.

II. Level of technology.

III. Level of demand in the economy.

IV. Public policy toward the supply industry.




Which of the following will lead to a reduction in aggregate demand in the U.S?



Within the AD/AS model, increased consumer and investor optimism concerning the future will lead to

A(n)



Which of the following is most indicative of a recession?

If policy makers wished to increase aggregate demand, which of the following policies might be

Undertaken?



Excess reserves of banks equal

First National Bank currently does not have the legally required cash reserves on hand. The bank

Expects this situation will only last a day or two. In order to rectify the reserve problem, the bank

Treasurer borrows cash on the intra-bank loan market. If the Central Bank provides this loan, the

Money supply will ________. If another bank supplies this loan, the money supply will ________.



The nation of Economica nominal GDP has increased from 100 to 104 units over the last 12 months.

Foreigners within Economica have earned income of 1.1 units. Which of the following conclusions are

Valid?



The nation of Economica has increased their M1 money supply by 10% over the last year by printing

Currency. This policy causes no price inflation. Which of the following could explain this phenomenon?

I. The nation of Islandia begins using the Economican currency as a reserve.

II. Aggregate output increases in Economica.

III. The Central Bank begins a government debt buy-back program.




According to the Keynesians,

Which of the following best expresses the central idea of counter-cyclical fiscal policy?



In the aggregate demand/aggregate supply model, when the intersection of AD and SRAS is to the left

Of LRAS, the economy



The velocity of money ________ if the money demand declines but the same amount of business is

Being conducted in the economy.