econ 202 final

the slope of englands production possibilities frontier would be -4/10 and the slope of hollands production possibilities frontier would be -3/4

assume that england and holland can switch between producing milk and oats at a constant rate

decrease the interest rate and so investment spending increases

a decrease in government spending:

to the right, the larger the multiplier is, the farther it shifts

a decrease in taxes shifts aggregate demand

leftward, in an attempt to stabilize the economy, the government could increase expenditures

a reduction in the u.s. net exports would shift u.s. aggregate demand?

crowd out investment spending by business firms

an increase in government purchases is likely to:

shift aggregate demand from ad1 to ad2

an increase in government purchases will:

purchased bonds to increase banks reserves

an increase in the money supply might indicate that the fed had?

increase the number of dollars in the hands of the public and decreases the number of bonds i the hands of the public

an open market purchase is?

money demand falls, so the interest rate falls

as real GDP falls?

the case with which an asset is converted to the medium of exchange

liquidity refers to

output in the short run only

monetary policy and fiscal policy influences on:

the interest rate decreases, which tends to raise stock prices

of the fed's increase the money supply:

All of the above

the appearance of the long - run aggregate - supply (LRAS) curve

50

the banks leverage ratio is?

inflation in the long - run, and employment in the short - run

the fed's policy decisions have an important influence on:

conducting open market operation

the fed's primary tool to change the money supply

154

what belongs in space A?

a decrease in supply

what best describes the movement from e1 to e2?

net exports rise for some reason other than a price change & government purchase rise

what both shifts aggregate demand right?

the cost of an input to the production of this good increases

what explains movement from e1 to e2?

all of the above is correct

what is correct?

decrease in price of fiberglass and sail cloth

what would cause supply curve to shift from supply A to C in the market for sail boats?

an increase in the price of milk

what would cause the supply curve to shift from supply B to A in the market for butter?

AB

Along which of these segments of the supply curve is simply most elastic

24 units of cheese and 15 units of wine

Assume that England & France each has 40 labor hours available. If each country divides its time equally between the production if cheese and wine, then total production is?

The total production of bread and wine each rise

Assume that John and Jane each work 24 hours. What happens to total production if instead of each person spending 21 hours producing each good, jane spends 21 hours producing wine and 3 hours producing bread, and John spends 3 hours producing wine and 21 hours producing bread?

value of all final goods and services produced within a country in a given period of time

GDP is defined as

3

How many in the sample are unemployed?

CP1 in 2015- CP1 in 2014 / CP1 in 2014 * 100

If 2010 is the base year, then the inflation rate in 2015 equals?

CP1 in 2013 - CP1 in 2012 / CP1 in 2012 * 100

If 2012 is the base year, then the inflation rate for 2012 equals?

83.33%, 16.67%

If nominal GDP is 10 trillion and real GDP is 12 trillion, the GDP deflator is?

increase by $4,800 and demand is elastic between points X and Z

If the price decreased from $36 to $12, total revenue would:

both 100% reserve banking and fractional reserve banking.

a banks assets equal its liabilities under:

30 million are not in the labor force?

Suppose that the adult population in the city of atlanta is 115 million. If 80 million people are employed and 5 million are unemployed, then.

500

a banks reserve ratio is 10% and the bank has 5000 in deposits. its reserves amount to:

it is possible that either fiscal or monetary policy might have escalated he shift from AD1 to AD2

What is correct?

monetary policy

a central banks setting of the money supply is known as?

decrease in the labor costs of the workers who pick peaches

The shift from s to s' in the market for peaches could be causes by a:

the resources that owners have put into the bank

a bank capital is?

25%

a bank has 8,000 in deposits and 6,000 in loans. it has loaned out all it can give for the reserve requirement. it follows that that reserve requirement is?

an asset for the bank and a liability for Gregs icecream, the loan increases the money supply

a bank loans gregs icecream 250,000, to remodel a building near campus to use as a new store. on their respective balance sheets, this loan is?

interest rate

according to the theory of liquidity preference, which variable adjusts to balance the supply and demand for money

are a problem because banks only hold a fraction of deposits as reserves

bank runs

checking account

demand deposits are a type of?

fall and thereby increase aggregate demand

during recessions, taxes tend to:

the president and congress and involves changing government spending and taxtation

fiscal policy is determined by?

2

if a 10% increase in price for a good results in a 20% increase in quantity demanded, the price elasticity of demand is:

1.33

if a 15% increase in price for a good results in a 20% decrease in quantity demanded, the price elasticity of demand is:

0.75

if a 20% increase in price for a good results in a 15% decrease in quantity demanded, the price elasticity of demand is:

83.33%, 16.67%

if nominal GDP is 10 trillion and real GDP is 12 trillion, then the GDP deflator is:

1/r

if r represents the reserved ratio for all banks in the economy, then the money multiplier is:

increase, fall

if the demand for software engineers ____ slower than does supply, then wages of software engineers will ___

decrease in the money supply eventually decreases

if the public decides to hold more currency and fewer deposits in banks, bank reserves:

at the supply curve right

in the market for foreign - currency exchange, capital flight shifts:

A to B

in the short run, a favorable shift in aggregate supply would move the economy from?

number of people employed plus the number of people umemployed

the labor force equals

decrease in the quantity supplied

the movement from point A to B represents a:

the inflation rate

the percentage change in the price level from 1 period to another is :

increase first nationals reserves by $120. Its excess reserves are $240

the required reserve ratio is 12% and FNB sells $120 of its short - term securities to the federal reserve. This action will:

31.6%

the unemployment rate of Aridia in 2011 was: