Trang chủ 18. Test - Economics - No 14





Which of the following correctly states the relationship between gross domestic product and net

Domestic product?



If the money velocity is 5 and the nominal GDP is $100 million, then the stock of money in circulation

Is



For a modern economy such as that of the U.S., full employment generally means



Without money to serve as a medium of exchange,



In a given economy, an increase of 200 in income causes an increase in consumption of 123. By how

Much will aggregate output expand due to an increase in aggregate expenditure of 1,000?



Which of the following about the aggregate expenditure model is true?



An economy is currently in equilibrium at full employment. If there is a decrease in aggregate demand,

Which of the following is/are true?

The price decrease will be larger if the change is unanticipated than in the case where it is

Anticipated.

II. The supply curve moves to the left in the short run if the change is anticipated.

III. The unemployment falls below the natural rate.

IV. Real GDP remains unaffected if the change is not anticipated.




If the full impact of an expansionary demand-stimulus policy is not completely anticipated, the policy

Will affect which of the following:


I. Total output.

II. Total employment.

III. Inflation.

IV. Real interest rates.




Which one of the following about expansionary monetary policy is true?

If an economy is operating below capacity, a monetary expansion will help move the economy toward

________.



Inflation

If an unanticipated decrease in aggregate demand results in an output below the economy's long-run

Capacity, long-run equilibrium will eventually be restored by



The largest component of GDP as measured by the expenditure approach is



Under a fractional reserve banking system, commercial banks will increase the money supply if they



A country's gross national product will most likely exceed its gross domestic product when the



In year 0, $100 purchases a certain basket of goods. By year 3, $124 is required to purchase the

Same basket of identical goods. What has the average annual inflation rate been over this period?



The permanent income hypothesis implies that the consumption component of aggregate demand will



In the short run, macroacceleration will tend to induce an expansion in output and employment

Because decision makers are



When the marginal propensity to consume is 3/4 and an economy operates at its full-employment

Capacity, in the Keynesian model a $25 billion increase in government expenditures will



According to the Keynesian view, if policy makers thought the economy was about to fall into a

Recession, which of the following would be most appropriate?