macro final

A country has national saving of $50 billion, government expenditures of $30 billion, domestic investment of $10 billion, and net capital outflow of $40 billion. What is its supply of loanable funds?

$50 billion

If imports = 500 billion euros, exports = 700 billion euros, purchases of domestic assets by foreign residents = 600 billion euros, and purchases of foreign assets by domestic residents = 800 billion euros, what is the quantity of euros demanded in the market for foreign-currency exchange?

200 billion euros

A country has a net capital outflow of $200 billion and domestic investment of $150 billion. what is the quantity of loanable funds demanded?

$350 billion

Which of the following would shift the long-run aggregate supply curve right?

An increase in the capital stock, but not an increase in the price level

People had been expecting the price level to be 120 but it turns out to be 122. In response Robinson Tire Company increases the number of workers it employs. What could explain this?

Both sticky price theory and sticky wage theory

Investment is

a small part of real GDP, yet it accounts for a large share of the fluctuation in real GDP.

Other things the same, which of the following would cause the real exchange rate to rise?

both an increase in the real interest rate and an increase in foreign demand for U.S. goods and services

The effect of an increase in the price level on the aggregate-demand curve is represented by a

movement to the left along a given aggregate-demand curve

According to classical macroeconomic theory and monetary neutrality, changes in the money supply affect

the GDP deflator

What would shift the aggregate-demand curve to the left?

A decline in the stock market, an increase in taxes, a decrease in government spending

In the open-econonmy macroeconomic model, the market for loanable funds identity can be written as

S = I + NCO

Which of the following would make both the equilibrium real interest rate and the equilibrium quantity of loanable funds decrease?

The demand for loanable funds shifts left

Which of the following would cause stagflation?

aggregate supply shifts left

When Mexico suffered from capital flight in 1994. Mexico's net capital outflow

and net exports increased

If business leaders in Great Britain become more confident in their economy, they will increase investment, causing the British pound to ________ and pushing the British trade balance toward ________.

appreciate, deficit

In 2009, Congress passed legislation providing states with funds to build roads and bridges. It also instituted tax cuts. Which of these shifts aggregate demand right?

both the increased funding for states and the tax cuts

A sudden increase in business pessimism shifts the aggregate-________ curve, leading to ________ output.

demand, lower

If U.S. speculators gained greater confidence in foreign economies so that they wanted to move more of their wealth into foreign countries, the dollar would

depreciate which would cause aggregate demand to shift right.

When the economy goes into a recession, real GDP ________ and unemployment ________.

falls, rises

Other things the same, an increase in the U.S. real interest rate induces

foreigners to buy more U.S. assets, which reduces U.S. net capital outflow.

The sticky-price theory of the short-run aggregate supply curve says that if the price level rises by 5% while firms were expecting it to rise by 2%, then some firms with high menu costs will have

lower than desired prices, which leads to an increase in the aggregate quantity of goods and services supplied

The value of net exports equals the value of

national saving - domestic investment

In 2002, the United States placed higher tariffs on imports of steel. According to the open-economy macroeconomic model this policy reduced imports

of steel into the United States, but reduced U.S. exports of other goods by an equal amount

According to the model of aggregate supply and aggregate demand, in the long run, an increase in the money supply should cause

prices to rise and output to remain unchanged.

Other things the same, in the open-economy macroeconomic model, if the real exchange rate rises, the

quantity of dollars demanded falls

One reason the short-run aggregate-supply curve slopes upward is that a higher price level

reduces real wages if nominal wages are sticky

If the supply of dollars in the market for foreign-currency exchange shifts left, then the exchange rate

rises and the quantity of dollars exchanged for foreign currency falls

If the United States were to impose import quotas

the demand for dollars in the market for foreign-currency exchange would increase, but the demand for loanable funds would not.

During the financial crisis it was proposed that firms be provided with a tax credit for investment projects. Such a tax credit would shift

the demand for loanable funds right and shift the supply of dollars in the market for foreign-currency exchange left.

A change in which of the following would shift the short-run aggregate-supply curve but not the long-run aggregate-supply curve?

the expected price level

Aggregate demand includes

the quantity of goods and services the government, households, firms, and customers abroad want to buy.

An increase in the expected price level shifts

the short-run aggregate supply curve to the left but does not affect the long-run aggregate supply curve.

Imagine that in 2019 the economy is in long-run equilibrium. Then stock prices rise more than expected and stay high for some time. In the long run, the change in price expectations created by the stock market boom shifts

the short-run aggregate supply left