Trang chủ 11. Test - Economics - No 7





Which of the following is/are components of the M1 money supply? I. Checking accounts. II. Credit card loans. III. Money-market mutual funds. IV. Traveler's checks.

If actual unemployment exceeds the natural unemployment, the AD/AS model indicates that full employment

In 1992, GDP equaled $6,039 billion while the M2 money supply was $3,498 billion. What was the velocity of the M2 money stock?

If producers suddenly become more pessimistic about future sales and profits, which of the following will most likely occur?

Within the AD/AS model, an increase in capital formation that permits the economy to achieve a larger output will

Which one of the following factors would cause the demand for money balances to increase?

Under Classical economic theory, if aggregate demand were to fall with no corresponding drop in aggregate supply, what would result?

Inflation is defined as

The Central Bank determines that for each $1 billion increase in the money supply, the general price level increases by 1%. Inflation is generally expected to be 5% per year. If unemployment is 7%, and the Central Bank wishes to reduce this to the natural rate of 5%, how much could the Central Bank increase the money supply without causing inflation in the long-term?

Recession is usually defined by economists as:

The government currently has cash reserves of $10 billion. In the current year, tax revenues declined due to an ailing economy. Spending did not change, and therefore the government had a current budget deficit of $100 million. Considering only the impact of government activity, how will real interest rates be impacted and why?

If consumers generally believe prices will be higher in the future for durable goods, what impact will this have on current demand and future inflation?

Within the Keynesian aggregate expenditure model, an increase in aggregate demand will

Suppose all banks are subject to a uniform reserve requirement of 20 percent and that the First Guarantee Bank has no excess reserves. If a new customer deposits $10,000, then the bank could extend new loans up to a maximum of ________.

Net domestic product will always be less than gross domestic product because net domestic product

Which of the following would increase GDP?

According to supply-side theory, if the government were to reduce the marginal tax rates substantially, which of the following effects is/are likely to occur? I. Real tax revenues might actually increase. II. Real GDP would increase. III. The domestic currency would weaken.

The Fed unexpectedly raises the discount rate by 25 basis points. In the short run, unemployment will ________. Demand for imported goods will ________.

Classical economists believe that since ________ is derived from the supply of goods and services, then ________ is simply a function of production.

Which of the following will most likely occur in the short run when the long-run equilibrium of an economy is disturbed by an unanticipated decrease in aggregate demand?