Macroeconomics final

Consider the consumption function in the table below. By how much will consumption change if disposable income goes down by $500? (Hint: use the mpc that you calculated in the previous problem). a) $500 b) $400 c) $-400 d) $-500

$-400

What is the slope of Arnold's demand for burittos? a) -2 b) -0.05 c) -0.5 d) 0.5

-0.5

Refer to the graph below. Suppose the economy is at point A. If the economy experiences a supply shock (an increase in the prices of crude oil), where will the new short-run (SR) equilibrium be (immediately after this increase in the price of crude oil)? a) A b) B c) C d) D

B

According to the figure below, at what point is AE>Y? a) J b) K c) L d) none of the above

J

Consider info in the table below. What was nominal GDP in 2016? a) $560 b) $690 c) $880 d) $1,140

$1,140

Consider in the table below. What is the unemployment rate in this economy? a) 5.25% b) 7% c) 7.5% d) 93%

7%

Refer to the graph below. Suppose the Fed sells government bonds in pursuit of contractionary monetary policy in response to a BOOM. This situation would be depicted as a movement from a) A to B b) B to C c) C to B d) C to D e) A to E

C to B

Refer to the graph below. Suppose the economy is in a boom and NO policy is pursued (i.e., the economy is allowed to self adjust). This situation would be depicted as a movement from a) A to B b) B to C c) C to B d) C to D e) A to E

C to D

Which aggregate supply curve has a positive slope? a) LRAS b) SRAS only c) both LRAS and SRAS d) neither LRAS, nor SRAS

SRAS only

Given the equation for C, and the values of I, G, and NX below, what is the equilibrium level of GDP, Y? C = 4,000 + 0.5Y I = 1,500 G=2,250 NX = -150 a) Y=$3,800 b) Y=$3,950 c) Y=$15,200 d) Y=$15,800

Y=$15,200

If a person takes $200 from his/her piggy bank at home and puts it in his/her savings account, then M1 will ____ and M2 will ____. a) increase; decrease b) increase; increase c) decrease; increase d) not change; increase e) decrease; not change

decrease; not change

Suppose the Fed buys $20 million in government bonds. If the required reserve ration, rr, is 25%, what will happen to money supply? a) it will decrease by $20 million b) it will increase by $20 million c) it will increase by $80 million d) it will increase by $100 million

it will increase by $80 million

Suppose the economy is in a recession. If Congress wants to help the economy speed up its recovery to the long-run equilibrium, it should ____ and this can be shown as the movement from _ . a) raise T; D to A b) raise G; D to A c) lower T; B to C d) lower G; B to C e) lower interest rate, r; B to C

lower T; B to C

Rising global demand for coal has led to increases in the price of coal. a) positive b) normative

positive

What phase of a business cycle was economy in between years 1 and 2? a) boom b) recession c) peak d) trough

recession

Disease, poor nutrition, and substandard health care in developing nations can reduce growth in an economy by a) reducing human capital. b) increasing labor productivity. c) increasing technological change. d) reducing physical capital.

reducing human capital

The study of economics arises due to a) greed b) money c) resources d) scarcity

scarcity

Suppose you are the president of a local bank. Your business is giving small business loans to local companies. Which of the scenarios below would you prefer as a borrower? Scenario I: Nominal interest rate is 10%, inflation is 5%. Scenario II: Nominal interest rate is 15%, inflation is 12%. Scenario III: Nominal interest rate is 7%, inflation is 3%. Scenario IV: Nominal interest rate is 9%, real interest rate is 6%. a) scenario I b) scenario II c) scenario III d) scenario IV

scenario II

Suppose you are the president of a local bank. Your business is giving small business loans to local companies. Which of the scenarios below would you prefer as a lender? Scenario I: Nominal interest rate is 10%, inflation is 5%. Scenario II: Nominal interest rate is 15%, inflation is 12%. Scenario III: Nominal interest rate is 7%, inflation is 3%. Scenario IV: Nominal interest rate is 9%, real interest rate is 6%. a) scenario I b) scenario II c) scenario III d) scenario IV

scenario IV

Emily is a fiction writer. She buys pens and paper for $20 and writes a novel that she sells to a publisher for $500,000. If the publisher prints 1 million copies of Emily's novel which sell for $25 each, what is publisher's VA (for all 1 million copies of Emily's novel)? a) $25,000,000 b) $24,500,000 c) $500,000 d) $499,980

$24,500,000

Refer to the table below. If government purchases, G, increase by $100 billion(i.e. from G=$150 to Gnew=$250), what will be the new equilibrium real GDP, Ynew? (Hint: Use the MULTIPLIER formula to answer this question and the value of Y that you found in the previous problem) a) $4,000 b) $3,000 c) $2,000 d) $1,000

$4,000

Refer to the table below. Suppose you deposit $5,000 at your bank, as indicated in the T-account below, and the required reserve ratio, rr, is 20%. As a result of the transaction, your bank can make a maximum loan of a) $5,000 b) $4,000 c) $3,500 d) $1,000

$4,000

Suppose you deposit $20,000 into a saving account at your local bank. If the bank pays an average interest rate of 5% annually, how much money will you have in your saving account in 15 years? a) $21,000 b) $35,000 c) $36,150 d) $41,579

$41,579

Suppose in 2015, the real GDP per capita in Belgium was $46,875. If the Belgian economy was growing at the 0.3% average annual growth rate (g=0.003), what would Belgium's real GDP per capita be in 2025? a) $46,875 b) $48,300 c) $60,9375 d) $62,996

$48,300

Emily is a fiction writer. She buys pens and paper for $20 and writes a novel that she sells to a publisher for $500,000. If the publisher prints 1 million copies of Emily's novel which sell for $25 each, what is Emily's VA? a) $25,000,000 b) $24,500,000 c) $500,000 d) $499,980

$499,980

Refer to the table below. What is the equilibrium level of real GDP, Y? a) $7,000 b) $6,000 c) $5,000 d) $4,000

$6,000

Equations for C, I, G, and NX are given below (same as in the previous problem): C = 2,000 + 0.9Y I = 2,500 G = 3,000 NX = 400 Now assume that investment, I, goes up by $500, i.e. increases from I=$2,500 to Inew=$3,000. Using the multiplier method, calculate the new level of equilibrium real GDP, Ynew. a) $78,500 b) $79,500 c) $84,000 d) $90,000

$84,000

Consider the data in the table below. How much is the marginal propensity to save, mps, in this economy? a) 0.2 b) 0.4 c) 0.75 d) 0.8

0.2

Given the consumption schedule in the table below, the marginal propensity to consume, mpc, is a) 0.5 b) 0.6 c) 0.75 d) 0.8

0.8

Refer to the table below. What is the marginal propensity to consume, mpc, in this economy? a) 0.8 b) 0.875 c) 0.9 d) not enough information to determine

0.8

Refer to the table below. If you deposit $5,000 at your bank, by how much will total deposits go up as a result of your deposit? Again, assume that the required reserve ratio is 20%. a) $4,000 b) $5,000 c) $9,000 d) $25,000

$25,000

Refer to the following balance sheet of small bank. If the required reserve ratio, rr, is 5%, how much excess reserves, ER, does this bank have? a) $400 b) $300 c) $350 d) $100 e) $50

$350

Refer to the graph below. Suppose that government purchases increase by $10 million, shifting up the aggregate expenditure line and GDP increases from GDP1 to GDP2. If the MPC is 0.75, then what is the change in GDP? a) $7.5 million b) $10 million c) $25 million d) $40 million

$40 million

If the mpc is 0.5, then a $10 million increase in disposable income will increase consumption by a) $50 million b) $15 million c) $5 million d) $2 million

$5 million

Refer to the table below. What was the real wage in 2019? a) $33.2 b) $15 c) $5.1 d) $4.2

$5.1

Refer to the table below. What was the real wage in 2020? a) $38.6 b) $15.1 c) $5.8 d) $4.2

$5.8

The CPI in 1990 was 131, and the CPI in 2008 was 215. If your mom earned a salary of $40,000 in1990, what would be her salary measured in 2008 dollars? a) $52,400 b) $65,649 c) $86,000 d) $105,649

$65,649

Consider the info in the table below. What was real GDP in 2016? Assume that 2005 is the base year. a) $560 b) $690 c) $880 d) $1,140

$690

Equations for C, I, G, and NX are given below: C = 2,000 + 0.9Y I = 2,500 G = 3,000 NX = 400 What is equilibrium real GDP, Y, in this economy? a) $4,333 b) $7,100 c) $8,778 d) $79,000

$79,000

Refer to the graph below. Suppose the Fed buys government bonds in pursuit of expansionary monetary policy in response to a RECESSION, caused by the COVID-19 pandemic. This situation would be depicted as a movement from a) A to B b) B to C c) C to B d) C to D e) A to E

A to B

Refer to the graph below. Suppose the economy is in a recession and NO policy is pursued (i.e., the economy is allowed to self adjust). This situation would be depicted as a movement from a) A to B b) B to C c) C to B d) C to D e) A to E

A to E

According to the quantity theory of money, if money supply is $100 billion and velocity is 2, how much is nominal GDP? a) $50 billion b) $100 billion c) $200 billion d) not enough information to determine

$200 billion

Which of the following is an example of a worker experiencing cyclical unemployment? a) a freightliner employee that got laid off because of the recession of 2020. b) a lifeguard who was hired during the summer season is laid off after summer is over. c) a worker who quits his job because he does not get along with his boss. d) an assembly line worker who loses his job because of automation. e) a worker who changes jobs to move closer her family.

a freightliner employee that got laid off because of the recession of 2020.

Suppose technological progress is 1%. If labor productivity increased by 4% this year, by how much must have the capital-to-labor ratio grown? a) 1% b) 3% c) 4% d) 9%

9%

Consider data in the table below. What is the employment rate in this economy? a) 93% b) 69.75% c) 21% d) 7%

93%

Refer to the graph below. Suppose the economy is at point C. If government spending on the war in Syria decreases, where will the new long-run (LR) equilibrium be (after the self-adjustment is completed)? a) A b) B c) C d) D

A

Y = $10 trillion I = $3 trillion TR = $2 trillion C = $5 trillion T=$4 trillion What is public saving, Spub, in a closed economy if you have the following economic data? a) $0 trillion b) $2 trillion c) $3 trillion d) $5 trillion

$0 trillion

Consumption spending is $8.5 billion, gross private domestic investment is $4 billion, exports $1 billion are and government expenditures are $2 billion. If GDP is $14 billion, how much are imports in the economy? a) $1.5 billion b) $0.5 billion c) $1 billion d) $2.5 billion

$1.5 billion

Suppose that a simple economy produces only four goods and services: 1) sweat shirts, 2) dental examinations, 3) coffee drinks, and 4) coffee beans. Assume that half of the coffee beans are used in the production of the coffee drinks while the other half is sold in stores to final consumers. Using the information in the table below, calculate nominal GDP for 2020 for this economy: a) $14,000 b) $13,000 c) $12,000 d) $7,000

$13,000

Consider the following monetary (Taylor) policy rule, where n is the Federal funds rate, pi is the current inflation rate, Y is real GDP, Y* is potential GDP. What is the target inflation rate in this economy? a) 3% b) 2% c) 1.75% d) 0.5%

2%

Consider the following MP rule, where n is the Federal funds rate, pi is the current inflation rate, Y is real GDP, Y* is potential GDP. What is the long-run equilibrium interest rate in this economy? a) 3% b) 2% c) 1.75% d) 0.5%

3%

According to the quantity theory of money, if the money supply grows at 6%, real GDP grows at4%, and the velocity of money is growing at 2%, then the inflation rate will be a) 6% b) 4% c) 3% d) 2%

4%

Consider the following MP rule, where n is the Federal funds rate, pi is the current inflation rate, Y is real GDP, Y is potential GDP. Calculate the federal funds rate, n, if the inflation is currently 4% and real GDP, Y, is 2% BELOW potential GDP, Y (i.e., the output gap = - 2%). a) 5.5% b) 6% c) 7.5% d) 0.57% e) not enough information to determine

5.5%

Suppose the economy is in a boom. If Congress raises taxes (conducting a contractionary fiscal policy), this can be shown as the movement from _ . a) B to A b) B to C c) D to A d) D to C

D to A

Suppose the economy is in a boom. If NO policy is pursued (i.e., the economy is allowed to self-adjust), this can be shown as the movement from _ . a) B to A b) B to C c) D to A d) D to C

D to C

Suppose Congress cuts BOTH military expenditures and income taxes by $100 billion. If the mpc is 0.95, what will be the effect on equilibrium GDP, Y? a) Y will increase by $100 billion b) Y will decrease by $100 billion c) Y will decrease by $2,000 billion d) Y will increase by $1,900 billion

Y will decrease by $100 billion

Suppose Congress cuts military expenditures by $100 billion. If the mpc is 0.95, what will be the effect on equilibrium GDP, Y? a) Y will increase by $100 billion b) Y will decrease by $100 billion c) Y will increase by $2,000 billion d) Y will decrease by $2,000 billion e) Y will increase by $1,900 billion

Y will decrease by $2,000 billion

Suppose Congress cuts income taxes by $100 billion. If the mpc is 0.95, what will be the effect on equilibrium GDP, Y? a) Y will increase by $100 billion b) Y will decrease by $100 billion c) Y will increase by $1,900 billion d) Y will decrease by $2,000 billion e) Y will increase by $2,000 billion

Y will increase by $1,900

In the graph below, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by the Federal Reserve? a) an increase in income tax b) an increase in the required reserve ratio, rr c) an open market purchase of government bonds d) an open market sale of government bonds

an open market purchase of government bonds

In the figure below, the movement from point A to point B in the money market would be caused by a) a decrease in real GDP, Y b) a decrease in the required reserve ratio, rr, by the Federal Reserve c) an open market purchase of government bonds by the Federal Reserve d) an open market sale of government bonds by the Federal Reserve

an open market sale of government bonds by the Federal Reserve

According to the quantity theory of money, if money supply is $100 billion and velocity is 2, how much is real GDP? a) $50 billion b) $100 billion c) $200 billion d) not enough information to determine

not enough information to determine

If the Fed wants to decrease the money supply by $200 billion and the required reserve ratio, rr, is 5%, what does the Fed have to do? a) sell $10 billion in government bonds b) sell $40 billion in government bonds c) sell $200 billion in government bonds d) buy $200 billion in government bonds

sell $10 billion in government bonds

If the U.S. economy is currently at point K, which of the following could cause it to move to point N, i.e., cause an increase in AE (hint: use the list of determinants of each component of AE from lecture #8)? a) consumers feel pessimistic. b) investors feel pessimistic. c) government decreases public schools' funding. d) there is an economic boom in Canada.

there is an economic boom in Canada

How would you call year 4? a) boom b) recession c) peak d) trough

trough

Consider the following data for a closed economy: Y = $14 trillion C = $8 trillion G= $3 trillion Spub = $1 trillion T = $5 trillion What is the level of private saving, Spriv, in this economy? a) $1 trillion b) $2 trillion c) $3 trillion d) $5 trillion

$2 trillion

Refer to the graph below. Suppose that net exports increase, shifting up the aggregate expenditure line. Real GDP, Y, increases from GDP1 to GDP2 and this amount is $100 billion. If the mpc is 0.8, then what is the distance between N and L, or by how much did net exports change to cause this $100-billion increase in real GDP Y? a) $20 billion b) $80 billion c) $100 billion d) $500 billion

$20 billion

Refer to the table below. How much is equilibrium real GDP, Y, in this economy? a) $4,000 b) $3,000 c) $2,000 d) $1,000

$3,000

Refer to the table below. What was the real wage in 2018? a) $4.4 b) $10.8 c) $11 d) $27.6

$4.4

Refer to the table below. How much is the marginal propensity to consume, mpc, in this economy? a) 0.4 b) 0.6 c) 0.8 d) 0.9

0.9

Consider the data in the table below. What was the GDP deflator in 2015? a) 92.2 b) 94.1 c) 106.2 d) 108.5

106.2

Consider the data in the table below. What was the GDP deflator in 2016? a) 92.2 b) 94.1 c) 106.2 d) 108.5

108.5

Assume the market basket for the consumer price index has three products -Cokes, hamburgers, and CDs with the following values in 2010 and 2011 for price and quantity. The CPI for 2011 equals (round your answer to the next largest whole number) a) 75 b) 93 c) 108 d) 121

121

Suppose the working-age population (WAP) is 200 million. If the labor-force participation rate (LFPR) 75%, and the unemployment rate (UR) 10%, how many people are employed (E) in this economy? a) 240 million b) 222 million c) 150 million d) 135 million

135 million

In 2019, citizens of Smileville consumed 30,000 tubes of toothpaste. In 2020, toothpaste consumption rose to 35,000 tubes. Calculate the % change in toothpaste consumption between 2019 and 2020. a) 11.66% b) 14.28% c) 16.67% d) 22.25%

16.67%

Suppose labor productivity grows by 4% this year. If the capital-to-labor ratio increases by 6%, how much is technological progress? a) 4% b) 3% c) 2% d) 1%

2%

Consider the data in the table below. Using the GDP deflator that you calculated for 2015 and 2016, calculate the inflation rate between 2015 and 2016. a) -2.1% b) -1.9% c) 2.2% d) 2.6%

2.2%

If the CPI was 215 in 2008 and it was 131 in 1990, what was the average inflation rate over this18-year period? a) 64% b) 15% c) 3.5% d) 2.8%

2.8%

Assume the market basket for the consumer price index has three products -Cokes, hamburgers, and CDs with the following values in 2010 and 2011 for price and quantity. Using the CPI and assuming again that 2010 was the base year, what was the inflation rate between 2010 and 2011? a) 21% b) 8% c) -17% d) -25%

21%

Eva runs a small bakery in the village of Roggerli. She is debating whether she should extend her hours of operation. Eva figures that her sales revenue will depend on the number of hours the bakery is open as shown in the table below. She would have to hire a worker for those hours at a wage rate of $15 per hour. Using the MC/MB analysis, determine how many hours should Eva extend her bakery's hours of operations? a) 5 hours b) 4 hours c) 3 hours d) 2 hours

3 hours

Suppose real GDP grows by 7% this year and the amount of labor increases by 6%. If the rate of technological progress this year is 2%, then how much will the aggregate capital stock grow? a) 5% b) 4% c) 3% d) 1%

3%

If in a small economy both real GDP and capital grow by 9%, technological progress is 2%, by how much labor must have increased in this economy? a) 9% b) 6% c) 2% d) 1%

6%

Suppose, your bank talks you into opening a saving account with them. The bank promises that if you put $10,000 in the saving account today, you will receive $20,000 10 years from now. What is the average interest rate that the bank will pay you over this 10-year period? a) 10% b) 7% c) 5% d) 3%

7%

Consider data in the table below. What is the labor force participation rate in this economy? a) 93% b) 75% c) 69.75% d) 21%

75%

If the price of milk was $1.25 a gallon last year and it is now $2.25 a gallon, what is the percentage change in price? a) 4.4% b) 8% c) 44% d) 80%

80%

Suppose the working age population (WAP) is 300 million. If the unemployment rate (UR) is 5% and there are 228 million employed (E), what is the labor-force participation rate (LFPR)? a) 76% b) 80% c) 90% d) 95%

80%

Refer to the graph below. Suppose the economy is at point A. If the economy experiences a supply shock (an increase in prices of crude oil), where will the new long-run (LR) equilibrium be (after the self-adjustment is completed)? a) A b) B c) C d) D

A

Refer to the graph below. Which of the points in the above graph are possible short-run (SR) equilibria? a) A and D b) A and B c) A and C d) B and D

B and D

Refer to the graph below. Suppose the economy is at point A. If corporate taxes decrease in the economy, where will the new short-run (SR) equilibrium be (immediately following this decrease in taxes)? a) A b) B c) C d) D

D

Suppose Bob works for Mary as a proofreader. Mary and Bob fall deeply in love, marry, and have eight children. Bob stops working for Mary in order to care for the children. What will be the effect on GDP? a) GDP will not change b) GDP will decrease c) GDP will increase d) GDP may increase or may decrease depending on inflation.

GDP will decrease

If inflation in the United States is higher than inflation in other countries, what will be the effect on net exports, NX, for the United States? a) NX will rise as U.S. exports increase. b) NX will rise as U.S. imports decrease. c) NX will decrease as U.S. exports decrease. d) NX will decrease as U.S. imports decrease.

NX will decrease as U.S. exports decrease

If the U.S. dollar depreciates against the Canadian dollar from 1.2 Ca $/U.S. $ to 1 Ca $/U.S. $, whatwill happen to net exports, NX? a) NX will decrease, because exports to Canada will increase. b) NX will decrease, because exports to Canada will decrease. c) NX will increase, because exports to Canada will increase. d) NX will increase, because imports from Canada will increase.

NX will increase, because exports to Canada will increase

The following equations represent the demand and supply for bird feeders: Qd = 35 - P Qs = -5 + 3P What is the equilibrium price (P) and quantity (Q) of bird feeders? a) P=$35; Q=20 b) P=$10; Q=25 c) P=$20; Q= 20 d) P=$5; Q=30

P=$10; Q=25

Using the slope that you calculated in the previous questions, write down the equation for Arnold's demand for burritos. a) P=2*Qd b) P=4-0.5*Qd c) P=5-2*Qd d) P=3-0.5*Qd

P=3-0.5*Qd

Refer to the graph below. An increase in the labor force would be represented by a movement from - a) point A to point B b) point B to point A c) SRAS 1 to SRAS 2 d) SRAS 2 to SRAS 1

SRAS 1 to SRAS 2

Consider two countries, Alpha and Beta. In Alpha, real GDP per capita is $9,000. In Beta, real GDP per capita is $6,000. Based on the theory of "global convergence", what would you predict about the growth rates in real GDP per capita across these two countries? a) The growth rate of real GDP per capita in Alpha and Beta will be the same. b) The growth rate of real GDP per capita will be higher in Alpha than it is in Beta. c) The growth rate of real GDP per capita will be lower in Alpha than it is in Beta. d) The economic growth model makes no predictions regarding differences in growth rates of real GDP per capita across the two countries.

The growth rate of real GDP per capita will be lower in Alpha than it is in Beta.

Which of the following best describes the "wealth effect"? a) When the price level falls, the nominal value of household wealth falls. b) When the price level falls, the nominal value of household wealth rises. c) When the price level falls, the real value of household wealth falls. d) When the price level falls, the real value of household wealth rises.

When the price level falls, the real value of household wealth rises

Given the equation for C and the values of I, G, and NX below, what is the equilibrium level of GDP, Y? C = 2,000 + 0.9Y I = 2,500 G = 3,000 NX = 400 a) Y=$4,333 b) Y=$7,100 c) Y=$8,778 d) Y=$79,000

Y=$79,000

Suppose when L=50 and K=100, output Y=$1,000. How much will Ynew be if this company triples both inputs of production, i.e., Lnew=150 and Knew=300? a) Ynew=$1,000 b) Ynew=$1,300 c) Ynew=$2,000 d) Ynew=$3,000

Ynew=$3,000

A tomato is an example of a a) a fiat money. b) a barter money. c) a commodity money. d) a representative money.

a commodity money

Which of the following can explain why some countries have not experienced relatively high growth rates in real GDP per capita despite relatively low initial levels of real GDP per capita? a) Many of these developing countries do not have a functioning court system that can enforce laws. b) Countries that are relatively poor are more likely to experience wars and revolutions. c) Countries that are relatively poor are likely to have a lower quality of health care. d) all of the above.

all of the above

Which of the following will raise consumer expenditures? a) a general increase in housing prices. b) an increase in interest rates. c) an increase in expected future income. d) an increase in the price level.

an increase in expected future income

Refer to the graph below. If the U.S. economy is currently at point N, which of the following could cause it to move to point K, i.e., cause a decrease in AE? a) The price level in the United States falls relative to the price level in other countries. b) Government increases funding of Coronavirus research. c) Congress raises corporate taxes. d) Household wealth increases.

congress raises corporate taxes

A worker quits her job at the post office and tries to find a higher-paid job. a) cyclical b) structural c) frictional d) seasonal

frictional

If a person withdraws $500 from his/her saving account and buys a traveler's check with it, thenM1 will ____ and M2 will ____. a) not change; not change b) not change; increase c) increase; not change d) increase; decrease e) increase; increase.

increase; not change

Legalizing all forms of illegal activities a) reduces GDP and increases the size of the underground economy. b) reduces GDP and reduces the size of the underground economy. c) increases GDP and increases the size of the underground economy. d) increases GDP and reduces the size of the underground economy.

increases GDP and reduces the size of the underground economy.

Is the recession of 2020 going to be as bad as the Great Depression? a) microeconomics b) macroeconomics

macroeconomics

What will the level of unemployment be in the entire economy? a) microeconomics b) macroeconomics

macroeconomics

Should you major in economics, finance, or history? a) microeconomics b) macroeconomics

microeconomics

Which of the following is consistent with the graph depicted below? a) New government regulations decrease the profitability of new investment. b) An expected expansion increases the profitability of new investment. c) There is a shift from an income tax to a consumption tax. d) The government runs a budget surplus.

new government regulations decrease the profitability of new investment

Pharmaceutical manufacturers should not be allowed to patent their products so prescription drugs would be more affordable. a) positive b) normative

normative

Textbook prices should be lower. a) positive b) normative

normative

Refer to the graph below. An increase in the price level will be represented by a movement from a) SRAS 1 to SRAS 2 b) SRAS 2 to SRAS 1 c) point A to point B d) point B to point A

point A to point B

Refer to the graph below. An increase in the price level will be represented by a movement from a) point A to point B b) point B to point A c) AD1 to AD2 d) AD2 to AD1

point B to point A

If fresh peaches were used as money, what function of money would be the hardest for peaches to serve? a) unit of account b) store of value c) medium of exchange d) medium of barter

store of value

The advice to "retrain" would be most appropriate for which of the following types of unemployment? a) frictional b) seasonal c) cyclical d) structural

structural

Which of the following will decrease the level of investment in the economy? a) firms' cash flow increases. b) the Fed increases interest rates. c) Congress lowers corporate taxes. d) investors feel optimistic as they expect the economy to enter a boom.

the Fed increases interest rates

Refer to the figure below. If the economy is at a level of aggregate expenditure given by point K, a) production is less than spending, Y<AE. b) production is greater than spending, Y>AE. c) the economy is in equilibrium. d) inventories will increase above their desired level.

the economy is in equilibrium

Which of the following is consistent with the graph depicted below? a) The government runs a budget deficit. b) The government runs a budget surplus. c) An expected recession decreases the profitability of new investment. d) Technological change increases the profitability of new investment.

the government runs a budget surplus

The following equations represent demand and supply for silver pendants: Qd = 50 - 2*P Qs = -10 + 2*P What are the equilibrium price (P) and equilibrium quantity (Q) of silver pendants? a) P=$10; Q=30 b) P=$15; Q=20 c) P=$50; Q=10 d) P=$20; Q=15

P=$15; Q=20

Successful football seasons at Auburn result in higher freshmen enrollment in the following fall semesters. a) positive b) normative

positive

The "international trade" effect states that - a) an increase in the price level will raise net exports. b) an increase in the price level will lower net exports. c) an increase in the price level will raise exports. d) an increase in the price level will lower imports.

an increase in the price level will lower net exports

Refer to the graph below. An increase in households' expectations of their future income would be represented by a movement from a) AD1 to AD2 b) AD2 to AD1 c) point A to point B d) point B to point A

AD1 to AD2