Trang chủ 17. Test - Economics - No 13

In a given economy, an increase of 100 in income causes an increase in consumption of 64. By how much will aggregate output expand due to an initial expenditure of 1,000?

In a given economy, full employment occurs at a real GDP of 9,200. Planned aggregate expenditure equals 7,100. Planned consumption and government expenditures total 5,400 and planned exports equal 940. If the economy is in Keynesian equilibrium, real GDP equals ________.

An economy is currently in a state of equilibrium at full employment. If a sudden demand shock were to decrease aggregate demand, which of the following effects will occur in the long run? I. Profit margins will decline. II. Resource prices will stay relatively unchanged. III. Prices will decrease. IV. Employment will increase.

According to the Keynesian view, which of the following would most likely decrease aggregate demand?

Which one of the following best explains why the crowding-out effect indicates that an increase in government spending financed by the sale of U.S. bonds to the public is unlikely to exert a strong expansionary impact on aggregate demand?

Assume that between 1982 and 1990, nominal GDP increased from $3 trillion to $5.2 trillion and that the price index rose from 100 to 130. Which of the following expresses GDP for 1990 in terms of 1982 prices?

Which of the following is true?

Calculate real output growth from period 1 to period 2 given the following information:    

Nominal GDP GDP Deflator
Period 0993 100
Period 1 1,000 106
Period 2 1,042 111

Assume period 0 is the base period.

Incorporation of expectations into economic decision making and the economic experience of recent decades indicate that in the long run

Which of the following is/are objections to the use of discretionary fiscal policy to control the economy? I. It is difficult to correctly time the fiscal policy. II. Fiscal policy changes without a consistent monetary policy is destabilizing. III. Implementation of fiscal policy changes takes much too long to be of use. IV. There are automatic stabilizers built into the economy.

Within the Keynesian aggregate expenditure model, what happens if the planned expenditures of

consumers, investors, governments and foreigners are less than output?

In the Keynesian view of macroeconomics

. If the supply of money is held constant, a decrease in the demand for money will ________ aggregate


Fed purchases of U.S. securities ________ the monetary base.

________ budget deficits reflect reduced tax revenues or increased spending due to a decline in

Economic activity during a recession.

If there is an increase in foreign financial investment in the U.S. as the result of large U.S. budget

Deficits, then

Which of the following best illustrates the difference between GDP and GNP?

Kelly receives a pay increase of 5%, but unbeknownst to her, this only compensates her for inflation

Over the next 12 months. What will the impact of inflation be on her spending habits?

How would the Bureau of Labor Statistics count a person working part time who refuses a full-time job

But who continues to look for a better paying full-time job?

Employment identifies the proportion of the population age 16 and over that is