Trang chủ 7. Test - Economics - No 3





If consumption equals 1,100 when disposable income is 1,200 and increases to 1,400 when disposable income goes to 1,600, what are the marginal propensities to consume and to save?

Keynesians believe that a discretionary fiscal policy:

Which of the following is/are true about monetary policy? I. The money supply is neutral in the long-run. II. Monetary policy can only serve to decrease economic volatility. III. Of the monetary aggregates, Central Bankers only have direct control over the monetary base.

Keynesian analysis suggests that a planned budget surplus

If business decision makers suddenly become more optimistic about future sales and profits, which of the following will most likely occur?

Which one of the following will most likely cause a future increase in a country's sustainable level of real output?

Assume that Polaroid decides to build a camera-research facility in Twin Falls, Idaho. The plant will employ 1,000 workers who will be guaranteed full-time jobs at annual earnings of $25,000. If the marginal propensity to consume in Twin Falls is 3/4, what change in income will result from operation of the plant for one year?

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

Fiscal policy designed to increase aggregate demand during economic downturns and decrease aggregate demand during economic booms is called

________ policy may be used by government officials to deliberately generate a budget deficit.

Deposits denominated in U.S. dollars at banks and other financial institutions outside the U.S. are known as ________.

A reserve requirement of 5 percent implies a potential money deposit multiplier of ________.

Inflation is problematic for which of the following reasons I. Purchasing power declines at a faster rate than incomes rise II. Inflation causes nominal interest rates to rise III. Inflation creates a disincentive to enter into otherwise beneficial long-term agreements

The unemployment rate of teen-agers is substantially higher than the unemployment rate of prime-age workers primarily because teen-agers

Frictional unemployment means

Mr. Brown was in the habit of cashing his weekly paycheck and using this cash for his daily expenses. However, he now gets his paycheck direct deposited into his checking account and uses a debit card exclusively instead of cash. This represents an increase in which of the following types of money demand for Mr. Brown?

Inflation has been about 5% for the last several years. There is widespread fear that oil and natural gas prices are about to spike at the same time there is unusually high unemployment. If inflation were actually 6% next year, and this causes no change in real GDP, what can be said about the general expectation for inflation?

Which of the following correctly describes how expansionary fiscal policy through tax cuts eventually impacts employment?

If the money supply is held constant, an increase in nominal GDP leads to ________ in the velocity of money.

In the Keynesian model, if the multiplier is 3, then ________.