Macroeconomics Exam 3

¡Supera tus tareas y exámenes ahora con Quizwiz!

As of March 2019, the supply of money (M1) in the United States was about

$3,760 billion.

Which of the following is a true statement?

Fiscal policy swung from contractionary to expansionary in 2002.

If the economy is in equilibrium at $400 billion of GDP and the full-employment GDP is $500 billion,

GDP will remain at $400 billion unless aggregate expenditures change.

In the United States from 1929 to 1933, real GDP _____________ and the unemployment rate ________________.

declined by 27 percent; rose to 25 percent.

Which of the following is an example of built-in stability? As real GDP decreases, income tax revenues

decrease and transfer payments increase

When the excess capacity of business expands unintentionally, aggregate...

demand will decrease.

The American Recovery and Reinvestment Act of 2009 is a clear example of

discretionary fiscal policy that made the cyclically adjusted budget become more negative.

In the aggregate expenditures model, it is assumed that investment...

does not change when real GDP changes.

immediate-short-run AS curve is

horizontal line

An increase in expected future income will...

increase aggregate demand.

In a recessionary expenditure gap, the equilibrium level of real GDP is...

less than full-employment GDP

The real-balances effect on aggregate demand suggests that a...

lower price level will increase the real value of many financial assets and therefore cause an increase in spending.

Most economists believe that fiscal policy is

not as good as monetary policy for month-to-month stabilization.

The most likely way the public debt burdens future generations, if at all, is by

reducing the current level of investment.

One of the most important views expressed by classical macroeconomists was that...

supply creates its own demand.

The financing of a government deficit increases interest rates and, as a result, reduces investment spending. This statement describes

the crowding-out effect

short-run AS curve is

upward sloping

long-run AS curve is

vertical


Conjuntos de estudio relacionados

Pennsylvania Real Estate Practice Chapter 4 - Agency Law

View Set

Economics Chapter 13. Aggregate Supply/Demand

View Set

Adjusting Entries and the Work Sheet

View Set

Substance Abuse Disorders Midterm

View Set

AP Human Geography: Unit 7.1 & 7.2

View Set

ACC 151: Chapter 12: The Statement of Cash Flows

View Set

Colloquial Egyptian Arabic Expressions

View Set

ASD 3 EXAMEN FINAL PRIMER SEMESTRE

View Set

Small Talk (Vocabulary in the context and pronounce)

View Set