Macroeconomics exam 2

If the marginal propensity to consume is 0.9, by how much will $100 of government spending increase GDP?

$1000

When disposable income is $1,200, what is the value of the average propensity to save

-0.083

The value of the MPC is:

0.90

The twin perils of the modern macroeconomy are said to be

Inflation and unemployment

According to the table,who will have higher real per capita GDP in 11.67 years

Macia because its starting level is high enough that Ecoland will not have enough time to catch up

If Europe has a large increase in income,what will happen in the UnitedStates

The aggregate demand curve will shift to the right

(Figure:InterpretingAggregateShifts)The graph shows

an increase in aggregate demand

Which one of the following would NOT lead to higher prices

an increase in the supply of food

Which of the following people would NOT be considered employed

an unpaid family employee working 10hours a week

Inflation is a

general rise in prices.

Disposable income equals

income minus taxes

Public debt owned by U.S.banks,corporations,mutualfunds,pensionplans,and individuals is called _____ debt.

internally held

(Figure:DeterminingFiscalPolicy)Expansionary fiscal policies could

move the economy to full employment

In the UnitedStates, our principal measure of inflation is

the consumer price index

The corporate income tax constitutes of federal government revenues.

up to 25%

When disposable income increases from $1,000 to $1,200, what is the value of the marginal propensity to save?

0.5

Based on the information provided in the graph above, the marginal propensity to consumer equals

0.6

According to the table,the GDP deflator for 2012 is

100

According to the table, the number of people in the labor force is

140

If the growth rate in an economy is3.5%,then its GDP will double in about

20 years

According to the table,which country will have the highest real GDP per capita in 23.67 years?

Ecoland

According to the table, which country will double its real GDP per capita most quickly?

Econia

Which of the following statements is NOT true?

Economic growth always leads to a more equitable distribution of income

Which statement aboutshort-run economic growth is NOT true?

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

If the government raises taxes or increases regulations, the short-run aggregate supply curve will shift from SRAS0 to _____ and the price level will be at _____.

SRAS2;P2