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MACRO ECON UNIT 3 AD, AS & FISCAL POLICY Flashcards | StudBud

Explore/MACRO ECON UNIT 3 AD, AS & FISCAL POLICY

If the MPS is .5 what is the spending multiplier?

Contractionary fiscal policy shifts the AD curve leftward.

MACRO ECON UNIT 3 AD, AS & FISCAL POLICY

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Questions 11

Answers

1
Contractionary fiscal policy shifts the AD curve leftward.
False
True
2
If the MPS is .5 what is the spending multiplier?
4
3
1
2
3
If the MPS is .5 what is the tax multiplier?
3
2
1
4
4
The longrun aggregate supply curve is
Vertical
Upward sloping
Downward sloping
Horizontal
5
Which one of these will NOT shift the demand curve.
a change in price level
an increase in government spending on defense
a decrease in investment spending
appreciation of the international value of the dollar
6
If the MPC is .75 what is the MPS?
.25
-.25
1
.75
7
A shift from AS₁ to AS₃ could be caused by
An increase in productivity
A decrease in government subsidies
an decrease in the corporate tax rate
A positive supply shock
8
A shift from AS₁ to AS₂ could be caused by
an increase in the cost of foreign resources
a decrease in productivity
a decrease in corporate taxes
an increase in wages
9
Successful expansionary fiscal policy results in
a rightward shift in AS
a leftward shift in AS
a leftward shift in AD
a rightward shift in AD
10
Expansionary fiscal policy could involve
an increase in corporate taxes
A decrease in government spending on defense
An increase in government spending on infrastructure
an increase in personal taxes
11
Which of the following would NOT shift the aggregate supply curve?
an increase in the productivity of workers
an increase in the price level
an increase in the cost of inputs
An increase in government taxes on corporations