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:
