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