econ help

In general economic research suggest that economies tend to

All of the above

a tax cut is associated with which of the following

Expansionary Fiscal Policy

The cyclically adjusted deficit as a percentage of GDP is 3 % in yr 1. This deficit becomes a surplus of 2 percent of GDP in year 2. from yr 1 to 2

Fiscal Policy turned more contractionary

when the economy is at equilibrium GDP level, all of the following will occur but

Inventories will be at zero

Which factor explains the high variability of investment

The durability of capital goods

If the cyclically- adjusted budget deficit and the actual budget deficit were the same, what could we assume

The economy is at full employment

In the how of income and spending, saving and investment are respectively

a leakage and an injection

Say's law in classical economics suggest that, over a period of time

aggregate spending total output and income

Would cause the multiplier consumer income to increase

all of the above (increase in MPC, decrease in MPS)

Which of the following will shift A1 to A3

an increase in input price

Relative to the US dollar, ________ over these months making it _____ for businesses to sell but also making it ______ for US consumers to buy goods imported from GB

appreciated, harder, easier

The long run aggregate supply analysis assumes that

both input and product prices are variable

Without a change in discretionary fiscal policy , if the economy goes into a rescission then the

cyclically- adjusted deficit would stay the same while the actual deficit increases

Given the expected rate of return on all possible investments opportunities in the community , a ______ in real interest rate will tend to _______ the level of overall investment

decrease, increase

An economy characterized by high unemployment is likely to be

experiencing a recessionary expenditure gap

The investment demand curve will shift to the left as a result of

general business- pessimism about future economic conditions

The immediate-short run aggregate supply curve is _____, while the short-run aggregate supply curve is _______

horizontal, upward sloping

net exports are negative

imports exceed exports

The American Recovery and Reinvestment Act of 2007 included mostly

increase in government spending and decrease in taxes

In the Great Rescission of 07-09 the aggregate expenditures schedule in the US economy dropped, due to a large part of what

investment expenditures

The "rockets and feathers" phenomenon that we discussed in class references to what economic tendency

prices in general tend to rise faster than they fall

constant, if domestic consumers purchase fewer foreign goods and more domestic goods, at each level the GDP in the short run will

rise

Assume that MPS in an economy went from .25 to .15. The multiplier effect associated w/ initial changes in consumer spending will

rise to a higher value

If GDP exceeds aggregate expenditures

saving will exceed planned investment

one major flay with says law is

say's lawigher savings

If business feel more optimistic about the state of the economy then this change is likely to

shift the investment demand curve to the right

The short run version of aggregate supply assumes

that product prices are flexible but resource prices are fixed

if the aggregate consumption in an economy was always equal to the disposable income then

the income consumption graph would be the same as the 45% reference line

An investment demand curve shows the varying amount of investment that would be undertaken at various levels of

the real investment rate

If the real interest rate increases

there would be a movement upward along the investment demand curve

best example of an automatic stabilizer for the economy

unemployment benefits paid to laid off workers

The long run aggregate supply curve is

vertical

The upward slope of the short- run aggregate supply curve is based on the assumption that

wages and other resource prices do not respond to price level changes

The cyclically-adjusted budget deficit in an economy is zero. If the economy goes through a recession then the actual gov budget

will be in a deficit

The marginal propensity to save is

.25

The marginal propensity to consume is

.75

suppose that an economy produces 2400 units of output, employing 60 units of the input , and the price is $30 per unit the per unit cost is:

.75

If the MPS if .1 then the multiplier will be

10 (multiplier= 1/mps)

What year did the US federal government experience a surplus

2001

The multiplier associated with this autonomous increase in investment is

4.0