Question 1

An increase in government purchases,ceteris paribus,will

Accepted Answer

A)  increase public saving. 
B)  increase the supply of loanable funds. 
C)  reduce investment. 
D)  reduce real GDP. 
A)  increase public saving. 
B)  increase the supply of loanable funds. 
C)  reduce investment. 
D)  reduce real GDP.

Question 2

When the government runs a deficit,which of the following is true?

Accepted Answer

A) T > TR - G B) G > T + TR C) G > TR - T D) T < G + TR A) T > TR - G B) G > T + TR C) G > TR - T D) T < G + TR

Question 3

If,in a closed economy,real GDP is $30 billion,consumption is $20 billion,and government purchases are $5 billion,what is total saving in the economy?

Accepted Answer

A)  $5 billion 
B)  $15 billion 
C)  $45 billion 
D)  $55 billion 
A)  $5 billion 
B)  $15 billion 
C)  $45 billion 
D)  $55 billion

Question 4

Inflation is measured

Accepted Answer

A)  using the level of the consumer price index. 
B)  as the percentage change in the consumer price index. 
C)  using the level of real GDP. 
D)  as the percentage change in real GDP. 
A)  using the level of the consumer price index. 
B)  as the percentage change in the consumer price index. 
C)  using the level of real GDP. 
D)  as the percentage change in real GDP.

Question 5

Explain and show graphically how a decrease in government spending affects the equilibrium interest rate and equilibrium quantity of loanable funds in the market for loanable funds.

Accepted Answer

When government spending decreases,gover

Question 6

Which of the following financial securities is most liquid?

Accepted Answer

A)  a savings account 
B)  a share of stock 
C)  a cashier's check 
D)  a $20 bill 
A)  a savings account 
B)  a share of stock 
C)  a cashier's check 
D)  a $20 bill

Question 7

The best measure of the standard of living is

Accepted Answer

A)  nominal GDP. 
B)  real GDP. 
C)  nominal GDP per capita. 
D)  real GDP per capita. 
A)  nominal GDP. 
B)  real GDP. 
C)  nominal GDP per capita. 
D)  real GDP per capita.

Question 8

The only way the standard of living of the average person in a country can increase is if ________ increases faster than ________.

Accepted Answer

A)  production; population 
B)  population; GDP per capita 
C)  population; production 
D)  population; income 
A)  production; population 
B)  population; GDP per capita 
C)  population; production 
D)  population; income

Question 9

Which of the following would occur if the United States switched from income taxes to consumption taxes?

Accepted Answer

A)  Consumption would increase. 
B)  The supply of loanable funds would decrease. 
C)  Saving would increase. 
D)  Tax revenues would rise. 
A)  Consumption would increase. 
B)  The supply of loanable funds would decrease. 
C)  Saving would increase. 
D)  Tax revenues would rise.

Question 10

What is the main difference between a consumption tax and an income tax?

Accepted Answer

A)  A consumption tax requires households to pay taxes only on the income they have left after consumption, while an income tax requires households pay taxes on all earned income before consumption. 
B)  A consumption tax requires households to pay taxes only on the income they spend, while an income tax requires households pay taxes on all earned income. 
C)  A consumption tax always generates less revenue than an income tax. 
D)  There is no difference between a consumption tax and an income tax. 
A)  A consumption tax requires households to pay taxes only on the income they have left after consumption, while an income tax requires households pay taxes on all earned income before consumption. 
B)  A consumption tax requires households to pay taxes only on the income they spend, while an income tax requires households pay taxes on all earned income. 
C)  A consumption tax always generates less revenue than an income tax. 
D)  There is no difference between a consumption tax and an income tax.

An increase in government purchases,ceteris paribus,will

When the government runs a deficit,which of the following is true?

If,in a closed economy,real GDP is $30 billion,consumption is $20 billion,and government purchases are $5 billion,what is total saving in the economy?

Inflation is measured

Explain and show graphically how a decrease in government spending affects the equilibrium interest rate and equilibrium quantity of loanable funds in the market for loanable funds.

Which of the following financial securities is most liquid?

The best measure of the standard of living is

The only way the standard of living of the average person in a country can increase is if increases faster than .

Which of the following would occur if the United States switched from income taxes to consumption taxes?

What is the main difference between a consumption tax and an income tax?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 10: Economic Growth, the Financial System, and Business Cycles

An increase in government purchases,ceteris paribus,will

When the government runs a deficit,which of the following is true?

If,in a closed economy,real GDP is $30 billion,consumption is $20 billion,and government purchases are $5 billion,what is total saving in the economy?

Inflation is measured

Explain and show graphically how a decrease in government spending affects the equilibrium interest rate and equilibrium quantity of loanable funds in the market for loanable funds.

Which of the following financial securities is most liquid?

The best measure of the standard of living is

The only way the standard of living of the average person in a country can increase is if ________ increases faster than ________.

Which of the following would occur if the United States switched from income taxes to consumption taxes?

What is the main difference between a consumption tax and an income tax?

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Unemployment and Inflation

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

The only way the standard of living of the average person in a country can increase is if increases faster than .