macro econ exam 3

if the exchange rate between the US dollar and the yen is 130 per dollar, how much would a pizza that cost $12 cost in yen

$1/12 = 130/x = 10.83

disposable iincome. consumption 100. 180 200 260 300 340 400 420 500 500 what is the marginal propensity to consume

.8

if there are no taxes or Imports and the MPC equals point nine what is the value of the multiplier

10

price level. real gdp. real gdp s long 100. 800. 400. 500 110. 700. 500. 500 120. 600. 600. 500 130. 500. 700. 500 what is the magnitude of the gap

100

price level. real gdp. real gdp s long 140. 2000. 1800. 2100 150. 1900. 1900. 2100 160. 1800. 2000. 2100 170. 1700. 2100. 2100 what is the short run equilibrium

150- price lvl 1900- real gdp

price level. real gdp. real gdp s long 140. 2000. 1800. 2100 150. 1900. 1900. 2100 160. 1800. 2000. 2100 170. 1700. 2100. 2100 what is the magnitude of the gap

200

disposable iincome. consumption 100. 180 200 260 300 340 400 420 500 500 at what level of disposable income does saving equals 0

500

price level. real gdp. real gdp s long 100. 800. 400. 500 110. 700. 500. 500 120. 600. 600. 500 130. 500. 700. 500 what is the short run equilibrium

600- real GDP 120- price lvl

if money wage rate increases what happens to the SAS curve and the L A S curve

SAS curve goes left L A S curve doesn't change

we expect the dollar to depreciate

Supply increases demand decreases the dollar depreciates

increase demand for imports

Supply increases dollar depreciates

what happens to aggregate demand when a) exchange rate increase b) transfer payments decrease c) increase in govt expenditures d)increase in taxes e) import increase

a)decrease b)decrease c)increase d) decrease e) decrease

if the demand for the dollar increases will the dollar appreciate or depreciate

appreciate

demand pull inflation

caused by an increase in aggregate demand

net borrower

country that is borrowing more than it is Lending

net lender

country that is lending more to other countries than it is borrowing

if a country is importing more than it is exporting will there be a positive or negative balance and current account and capital account

current - neg capital- pos

foreign interest rate increase

demand decreases Supply increases the dollar deppreciates

increase demand for US exports

demand increases the dollar appreciates

if the supply of dollars increases will the dollar appreciate or depreciate

depreciate

what is taxation

disposable income decreases if we raise taxes consumption decreases and aggregate demand decreases

if the Dollar's value changes from 120 yen per dollar to 110 Yen per dollar has the dollar appreciated or depreciated has the Yen appreciated or depreciated

dollar- d yen- a

monetary policy

fed buys government security you have hurt yourself

if real gdp= potential gdp this is

full employment

fiscal policy

government use of Taxation and spending to impact the economy

if real GDP is greater than potential GDP what kind of Gap is

inflationary Gap

if there is an increase in the quantity of human capital what happens to the Las curve and the SAS curve

l - shifts right s - shifts right

if the exchange rate Falls foreign Goods become (________) expensive and US Imports (________)

more, decrease

price level. real gdp. real gdp s long 100. 800. 400. 500 110. 700. 500. 500 120. 600. 600. 500 130. 500. 700. 500 is this long run equilibrium if not what type of output Gap exist

no inflationary Gap

price level. real gdp. real gdp s long 140. 2000. 1800. 2100 150. 1900. 1900. 2100 160. 1800. 2000. 2100 170. 1700. 2100. 2100 is this long run equilibrium if not what type of output Gap exist

no recessionary Gap

foreign exchange rate

price at which one currency traits for another

if I could get demand increases what happens to price level and real GDP

price level increases and real GDP increases

short run aggregate supply increases what happens to price level and real GDP

price level increases real GDP decreases

if real GDP is greater than potential GDP what kind of Gap

recessionary gap

autonomous consumption

when disposable income is zero the level of consumption