Trang chủ 20. Test - Economics - No 16

If an economy's stock of privately owned capital goods is greater at the end of the year than at the beginning of the year, then over this period

Which of the following is/are true about the "permanent income hypothesis?"
I. It implies that there is a permanent one-to-one increase in consumption for a given change in income. 
II. It maintains that the consumption of households is largely determined by their long-range expected income. 
III. It implies that changes in business cycle do not exert a large impact on current consumption.
IV. Consumption instability destabilizes aggregate demand over a business cycle.

Within the framework of Keynesian analysis, if the federal government increased its spending without increasing its tax revenues during a period of full employment,

Assume the Fed purchases $20,000 worth of U.S. Treasury bonds from Donald Trunk, who deposits the money with First National Bank. If the required reserve ratio is 20 percent, the immediate effect of this transaction(before the deposit expansion multiplier)will be to

Both the U.S. experience and international comparisons strongly indicate that persistent, rapid growth in the money supply is linked with ________.

An unanticipated ________ will temporarily stimulate output and employment.


Population 50 million
Number in the labor force 30 million
Number employed full time 20 million
Number employed part time 8 million
Number unemployed 2 million

What is the labor force participation rate of the economy?

An economist who calls for reducing marginal tax rates to pull an economy out of a recession is:

The four components of planned aggregate expenditures are

If depreciation and indirect business taxes (including business transfers) were added to national income, the result would be

Which one of the following persons would be considered unemployed?

If an economy operates on the Keynesian range of its SRAS curve and the marginal propensity to consume is 2/3, a $100 billion increase in investment will cause real output to increase approximately ________.

"On the whole, statistics show that the velocity of money is high when the nominal interest rate is high." This statement is most consistent with the idea that

The economy has had unusually high inflation over the last 4 years due in part to an oil shock. However, the Central Bank has been aggressively raising interest rates recently.
According to the adaptive expectations hypothesis, which of the following is most likely for the upcoming year?

Which of the following describes the historical record of the business cycle in the U.S. ?

How would a domestic citizen's purchase of a foreign-produced good change GDP?

The demand for money is inversely related to ________.

The impact of expansionary anticipated monetary policy in the short run will be to ________ the real interest rate.

A nation has a government program by which workers who are laid-off are paid their previous salary for one month. Which of the following terms most accurately describes this program?

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