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Macro Final review Flashcards | StudBud
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Macro Final review
Macro Final review
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Answers
1
A change from Point A to Point B represents a(n)
increase in demand
increase in quantity demanded
decrease in demand.
decrease in quantity demanded.
2
Andy views beer and pizza as complements to one another. If the price of pizza decreases, economists would expect
Andy's demand for beer to increase
Andy's demand for pizza to increase
Andy's quantity of pizza demanded to decrease
Andy's demand for pizza to decrease
3
Refer to the graph shown below. At point A
wages can be lowered due to worker surplus
economic growth is declining
inflation tends to be declining
the economy has near- full employment
4
What would be the effects of a negative consumer confidence index report on Aggregate Demand & GDP
shift AD to the right, decreasing GDP
no answers are correct
shift AD to the left, reducing GDP
shift AD to the right, increasing GDP
5
During WWII, Germany’s factories decimated and human casualties, what was impact to the production possibilities curve
shift out
remain unchanged
No change
shift inward
6
How do you convert a series of nominal economic data over time to real terms? Select base year and measure..
changes in the value of the currency with respect to the previous year.
changes in the value of the currency with respect to any other year
changes in the value of the output with respect to the most previous year
changes in the value of the currency with respect to that year
7
Summarize the Neoclassical model focuses on
aggregate demand
aggregate supply
8
Refer to Figure 3-1. Using the graph above and beginning on D1, a shift to D2 would indicate a(n):
increase in demand
decrease in quantity demanded
decrease in demand
increase in quantity demanded
9
What was real GDP in 2017 ?
Cannot compute from information given
6680
5540
7800
10
Summarize the Keynesian model
aggregate demand
aggregate supply
11
How is a basket of goods and services used to measure the price level?
we are able to get a more accurate representation of productivity
the government knows by how much to raise taxes each year.
consumers can determine how to plan for price increases
we are able to get a more accurate representation of costs to consumers
12
What is the Keynesian prescription for inflation?
increasing aggregate demand through fiscal restraint
increasing aggregate demand through government spending
decreasing aggregate demand through fiscal restraint
decreasing aggregate demand through increased government spending
13
Referring to the diagram below: Any increase in aggregate demand in the short-run will lead to:
an increase in output Q1 to Q2, but it will also lead to prices increasing
45 degree supply curve, which will lead to recession
an increase in output (Q1 to Q2), but it will also lead to a recession
45 degree supply curve, which will lead to increasing unemployment.
14
Most choices involve ____, which comparing the benefits and costs of choosing a little more or a little less of a good
marginal Analysis
the budget constraint
consumption
utility
15
Country has export $20B, gov purchase $1B, business investmenst $50B, imports $40B, consumption $2B. What is GDP
3030
3110
3060
non are correct
16
According to the law of supply
direct relationship between price and the quantity supplied
inverse relationship between price and quantity demanded
inverse relationship between price and the quantity supplied
direct relationship between price and quantity demanded
17
A decline in the demand for corn will
shift the soybean supply curve to the left.
shift the soybean supply curve to the right.
shift the soybean demand curve to the left.
shift the soybean demand curve to the right
18
What is the Keynesian prescription for curing recession?
decreasing aggregate demand through fiscal restraint
decreasing aggregate demand through government spending
increasing aggregate demand through government spending
increasing aggregate demand through fiscal restraint
19
Which of the following represents a financial inflow into the U.S. economy?
Canadian investors buying real estate in Arizona
foreign aid from the U.S. to Haiti
oil imports from Iraq
South Korean car imports
20
The economy represented by the AD/AS diagram, where the economy is not at full employment (Yfull).Keynes would suggest
Reduce government spending on bridges and roads
Decrease the rent because the rent is too high
Decrease tariffs (taxes on imports)
Increase taxes on consumers
Government building of a new bridge to an island off the coast of Maryland
21
From a neoclassical perspective, which would be viewed as an element that underpins long run productivity growth
flexible price levels
higher unemployment
investments in human capital
inflexible market forces
22
How is a central bank different from a typical commercial bank?
regulates the money supply of the economy
deals primarily with individuals and not commercial b
make loans or take deposits from individuals
takes deposits from commercial businesses
23
If immigration increases, it impacts AD/AS and GDP...
shifting AS to the right, higher GDP and a lower price level.
shifting AD to the left, higher GDP and a lower price level.
shifting AS to the right, lower GDP and higher price level
shifting AD to the right, higher GDP and a lower price level.
24
What is comparative advantage?
when a country can produce a good at a lower cost than others countries
when a country has a higher opportunity cost of production
when a country can produce a good at a lower opportunity cost
when a country can produce a good at a higher cost
25
The graph below refers an increase in income taxes. Which of the following is a likely result
inflationary pressures will be greater
the economy will experience lower economic growth
cyclical unemployment will decrease
input prices will rise in the short run
26
When nations desire a healthy macroeconomy, they typically focus on three goals, one of these being:
prudent monetary policy
low inflation
balanced budget
assuring competition between firms
27
Explain why scarcity leads to trade offs.Choose all correct answers
you have to give up something unless you have enough money for both
If you want a certain good, you have to give up something else to get it
supplies of all goods are limited, human wants are unlimited
only if you do not have the resources to obtain both
28
A change from Point A to Point B represents a(n
decrease in supply
increase in supply.
decrease in quantity supplied
increase in quantity supplied
29
The unemployment rate in a town in which 65,400 persons are employed and 11,000 are unemployed equals
20.2%
11%
16.8%
14.4%
