Question 1

In comparison to the oversimplified formula for the multiplier,the real-world multiplier is

Accepted Answer

A)  lower. 
B)  higher. 
C)  almost equal to it. 
D)  higher if taxes are included. 
A)  lower. 
B)  higher. 
C)  almost equal to it. 
D)  higher if taxes are included.

Question 2

The slope of the aggregate demand curve illustrates that as the price level rises,

Accepted Answer

A)  real GDP demanded decreases. 
B)  real GDP demanded increases. 
C)  the aggregate demand curve shifts rightward. 
D)  the aggregate demand curve shifts leftward. 
A)  real GDP demanded decreases. 
B)  real GDP demanded increases. 
C)  the aggregate demand curve shifts rightward. 
D)  the aggregate demand curve shifts leftward.

Question 3

An expenditure schedule that lies below the full employment level of GDP will cause

Accepted Answer

A)  rising prices. 
B)  increasing output. 
C)  falling inventories. 
D)  falling prices. 
A)  rising prices. 
B)  increasing output. 
C)  falling inventories. 
D)  falling prices.

Question 4

In a simplified circular flow model with no government,in equilibrium,S = I + (X − IM).

Accepted Answer

A) True 
 B)False

Question 5

The main examples of macroeconomic coordination failures are

Accepted Answer

A)  profit declines. 
B)  relative price changes. 
C)  recessions and depressions. 
D)  consumer taste changes. 
A)  profit declines. 
B)  relative price changes. 
C)  recessions and depressions. 
D)  consumer taste changes.

Question 6

Figure 9-5
  
-If the shift in the C + I + (X − IM)in Figure 9-5 was caused by a 80 dollar increase in investment,then the multiplier is

Accepted Answer

A) 0. 
B) 2. 
C) 3 
D) 4. 
E) 5. 
A) 0. 
B) 2. 
C) 3 
D) 4. 
E) 5.

Question 7

The concept that increases in spending cause larger increases in equilibrium GDP is known as the

Accepted Answer

A)  profiler. 
B)  mystifier. 
C)  multiplier. 
D)  depreciator. 
A)  profiler. 
B)  mystifier. 
C)  multiplier. 
D)  depreciator.

Question 8

The basic idea behind the multiplier is that an increase in

Accepted Answer

A)  GDP brings about an additional, larger increase in GDP. 
B)  consumer spending causes a larger increase in investment spending. 
C)  government spending causes a larger increase in tax revenues. 
D)  spending will cause an even larger increase in equilibrium GDP. 
A)  GDP brings about an additional, larger increase in GDP. 
B)  consumer spending causes a larger increase in investment spending. 
C)  government spending causes a larger increase in tax revenues. 
D)  spending will cause an even larger increase in equilibrium GDP.

Question 9

Economists before Keynes assumed that equilibrium GDP occurred

Accepted Answer

A)  automatically. 
B)  only with the help of government stabilization. 
C)  if spending was generally greater than output. 
D)  only in socialist economies with central planning. 
A)  automatically. 
B)  only with the help of government stabilization. 
C)  if spending was generally greater than output. 
D)  only in socialist economies with central planning.

Question 10

Define the terms recessionary gap and inflationary gap.Why do they occur?

Accepted Answer

A recessionary gap exists when the expen

Question 11

Carefully define the following terms and explain their importance in the study of macroeconomics:
a.expenditure schedule
b.saving schedule
c.equilibrium GDP
d.leakages schedule
e.injections schedule

Accepted Answer

a.The expenditure schedule shows the rel

In comparison to the oversimplified formula for the multiplier,the real-world multiplier is

The slope of the aggregate demand curve illustrates that as the price level rises,

An expenditure schedule that lies below the full employment level of GDP will cause

In a simplified circular flow model with no government,in equilibrium,S = I + (X − IM).

The main examples of macroeconomic coordination failures are

Figure 9-5 -If the shift in the C + I + (X − IM)in Figure 9-5 was caused by a 80 dollar increase in investment,then the multiplier is

The concept that increases in spending cause larger increases in equilibrium GDP is known as the

The basic idea behind the multiplier is that an increase in

Economists before Keynes assumed that equilibrium GDP occurred

Define the terms recessionary gap and inflationary gap.Why do they occur?

Carefully define the following terms and explain their importance in the study of macroeconomics: a.expenditure schedule b.saving schedule c.equilibrium GDP d.leakages schedule e.injections schedule

What Is Economics?

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

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Exam 9: Demand-Side Equilibrium: Unemployment or Inflation?

In comparison to the oversimplified formula for the multiplier,the real-world multiplier is

The slope of the aggregate demand curve illustrates that as the price level rises,

An expenditure schedule that lies below the full employment level of GDP will cause

In a simplified circular flow model with no government,in equilibrium,S = I + (X − IM).

The main examples of macroeconomic coordination failures are

Figure 9-5 -If the shift in the C + I + (X − IM)in Figure 9-5 was caused by a 80 dollar increase in investment,then the multiplier is

The concept that increases in spending cause larger increases in equilibrium GDP is known as the

The basic idea behind the multiplier is that an increase in

Economists before Keynes assumed that equilibrium GDP occurred

Define the terms recessionary gap and inflationary gap.Why do they occur?

Carefully define the following terms and explain their importance in the study of macroeconomics: a.expenditure schedule b.saving schedule c.equilibrium GDP d.leakages schedule e.injections schedule

What Is Economics?

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

Filters