Econ Final

Suppose the Treasury sell $10 billion worth of securities to the Social Security Administration and $15 billion to the general public. This sale added_____billion to gross public debt and ____billion to the debt held by the public

$25; $15

There are 15 million people living in Marketstan, of whom 9 million are working and 1 million are actively looking for work. Labor Force?

10 million

_____ involves increasing government spending, increasing transfer payments and/or decreasing taxes

Expansionary Fiscal Policy

In the full aggregate expenditure model with net exports included

I + G + X = S + T + M.

Which statement about the Rule of 70 is TRUE?

IT is fairly accurate for small growth rates

Whose analysis serves as the foundation of modern macroeconomics?

John Maynard Keynes

Which of the following people would NOT be considered employed?

an unpaid family worker working 10 hours a week

Between 1990 and 2010, the number of people in the world living in poverty has:

been cut in half

The Federal Reserve can purchase ____to fund fiscal policy, resulting in _____.

bonds; an increase in the money supply

Which of the following institutions is NOT an example of our nation's infrastructure?

buildings of General Electric

Which fiscal policy time lag can occur when the legislative process works slowly?

decision lag

Which of the following terms describes a situation in which there is a reduction in the rate of inflation from 4% to 3% per year

disinflation

Wages set high to discourage employee turnover are called ____wages

efficiency

When the government funds Head Start, it is acting in its role to promote economic growth by:

enhancing physical and human capital.

When the government records a deed showing that ownership of a piece of property has passed from one party to another, it is acting in its role to promote economic growth by

ensuring a stable legal system.

____unemployment includes workers who voluntarily quit their jobs to search for better positions

frictional

When the economy is under performing and policymakers pursue expansionary fiscal policy, they express willingness to trade off _____ output for a ____price

higher; higher

An increase in net export spending will result in an

increase in aggregate demand.

Protection of property rights is:

independent of a stable legal system

What statement about short-run economic growth is NOT true?

it is likely to occur when obstacles preventing resources from being used are put in place

The natural gas deposits found in the United States over the past decade are an example of an increase in:

land and natural resources

In the United States, Social Security and Medicare are examples of:

pay-as-you-go programs.

Infrastructure is defined as a country's

public capital

If interest rates fall, the burden of a nation's public debt will____ and it will be ____difficult to service its debt?

rise; more

Which of the following occurrences is the key explanation for the high economic growth in the United Sates in the past century?

technology improvements

In the United States, our principle measure of inflation is:

the consumer price index

Hannah is not at work because she broke her leg, but she will return once it is healed...

temporarily unemployed

If consumption decreases from $600 billion to $575 billion and the marginal propensity to consume is 0.8, then equilibrium income will

fall by $125 billion.