Trang chủ 24. Test - Economics - No 20

The period between the peak of the business cycle and the trough is called the

Since 1993, the GDP deflator of an economy has gone up by 14%. The nominal GDP has grown by

31%. Then, the growth in the real GDP equals ________.

The Keynesian analysis implies that maximum potential output, full employment and price stability can

Be achieved if

According to the permanent income hypothesis, a family's consumption is primarily dependent on its

Inflation creates an incentive to spend now because

When additional reserves are injected into the banking system, they can potentially increase the

Money supply by an amount equal to the additional (excess) reserves multiplied by the

If people anticipate that expansionary macroeconomic policy will lead to higher prices than actually

Occur (they overestimate inflation), then the expansionary policy will

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

A discouraged worker is a worker who

An individual should continue to spend time searching for a job as long as

Rudy owns a bagel shop. He knows nothing about economics, and pays little attention to monetary or

Fiscal policy. If monetary policy causes long-run 5% inflation, how will this impact Rudy's production

Decisions in the long-run?

A person is considered unemployed if she is

If the money velocity (V) and real output (Q) were increasing at approximately the same rate, then

The equation of exchange is ________.

Jenna and Colleen both own rival clothing factories, and each is working on next year's production

Plans. Jenna assumes that inflation will probably be 5%, since this is about what it has been the last 5

Years. Colleen has been reading in the news that the Federal Reserve may be changing their policy

And lowering interest rates in the near-term. If Colleen makes her inflation judgement based on the

Adaptive expectations hypothesis, how will her estimation differ from Jenna's?

The marginal propensity to consume is defined as the

Which of the following about inflation is true?

According to the Keynesian model, if the marginal propensity to consume were 0.8, an independent

Increase in investment expenditures of $25 billion would cause the equilibrium aggregate income to


The demand for money to provide instant purchasing power is known as

For an oil-importing country such as the U.S., the immediate effect of a supply shock caused by an

Increase in the price of imported oil would tend to be a(n)