Which national institution is responsable for the Monetary Policy and how?

Central Bank by changing money suply

Why are budget deficits (gov't spends more than it takes in) so common?

Cutting government programs is unpopular

According to those who use the Laffer curve, high taxes

discourage people from working harder to earn more income.

What are the economic agents in Macroeconomics?

Households, Businesses, Government

Contractionary Policy of the fiscal policy

decreases government spending and increases taxes

the aggregate demand curve shows the

inverse relationship between price level & real GDP purchase

The Monetary policy is

The control of the supply of money in circulation

Which of the following would be an example of monetary policy?

Increase / decrease in interest rates

Macroeconomics focuses on things like _____.

government policies that should be adopted.

What is Agregate Demand?

Total spending on goods in a period of time at a given price

When should the Government raise interest rates?

When the inflation rate is too high

Which of the following citizens is most likely to be affected by high inflation?

A retired grandmother on a fixed income

What does a Laffer curve illustrate?

increasing tax rates may end up in reducing overall tax revenue

The Laffer curve predicts that

At very high tax rates less revenue is generated

The Expansionary Policy of the fiscal policy

increases government spending and decreases taxes

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Macroeconomics 2

34 termsStudBud Administration437 plays

Macroeconomics SKEMA- BELO Prof. Mario Marques MSc

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Questions 34

Answers

1
If govenment increases spending and decreases taxes a negative effect will be...
Lower Unemployment
Growing debt
Higher Unemployment
lower inflation
2
Which national institution is responsable for the Monetary Policy and how?
Congress with tax & spend policy
Central Bank by changing money suply
Congress and STF by changing $ suply
Central Bank with tax &spend policy
3
What factor can shift aggregate supply curve, in the short run?
Raw materials prices
All are correct
Taxation
Wage rates
4
Why are budget deficits (gov't spends more than it takes in) so common?
There is no negative consequence for a budget defict
Cutting government programs is unpopular
Keynes only knows
Budget deficts are actually quite rare
5
According to those who use the Laffer curve, high taxes
discourage people from working harder to earn more income.
stimulate the economy to grow.
cause government revenues to increase without limit
all of the above
6
What monetary policy did the BACEN recently implement?
decrease interest rates
increase interest rates
raise taxes
increase government spending
7
Which situation exists when tax revenues exceed government expenditures?
A budget deficit
The government sells Treasury Bills
The Treasury prints more money
A budget surplus
8
What are the economic agents in Macroeconomics?
J. Bourne & J. Bond
GDP, Business Cycle, Inflation
Households and Businesses
Households, Businesses, Government
9
Contractionary Policy of the fiscal policy
decreases government spending and increases taxes
decreases government spending and decreases taxes
increases government spending and taxes
increases government spending and reduces taxes
10
What policy could the Brazilian government try to expand the economy?
Cut Government spending
Cut production of consumer goods
Cut prices of consumer goods
Cut Taxes
11
The aim of Monetary policy is to control.....
Inflation
Interest Rates
Unemployment
GDP
12
A very high level of inflation is called___ and are usually caused by nations___ too much money.
Hyperinflation and lending
Inflation and printing
Deflation and destroying
Hyperinflation and printing
13
the aggregate demand curve shows the
inverse relationship between interest & real GDP produced
direct relationship between real-balance & real GDP purchase
inverse relationship between price level & real GDP purchase
direct relationship between price level & real GDP produced
14
We measure this indicator by calculating the price of a specific basket of goods
Stock market
GDP
CPI
Unemployment Rate
15
In this formula, what does "G" represent?
Government spending
Government Brib
Govenment investments in society
Government taxes
16
Which of the factors doesn't shift the aggregate supply curve?
Fashion
Suply shocks
Employment costs
Impact of government
17
In this formula, what does "C" represent?
Consumer Interest
Consumer Purchases
Consumers
Consumer Wages
18
The Monetary policy is
Immigration laws for ownership of land
The best contraceptive method
The control of the supply of money in circulation
The increase of global trade tax
19
The Central Bank will ___ interest rates to stimulate the economy
Juntos e shallow now
Match
Increase
Decrease
20
Which of the following would be an example of monetary policy?
Increase / decrease in interest rates
Lowering government spending
Reduce income taxes
Increasing exports
21
C + I + G + Nx = ?
GDP
Inflation
CPI (da Covid)
Unemployment
22
Macroeconomics focuses on things like _____.
the cost of a University offering a new course.
salaries that Bradesco gives to new graduates..
government policies that should be adopted.
the number of iPhones imported from USA.
23
If the following shift occurs what will happens to inflation?
Inflations stays the same
Inflation falls
Cannot tell
Inflation rises
24
If the interest rate is reduced, what phase of the business cycle the central bank is trying to encourage?
Lending
Expansion
Contraction
Peak
25
What is Agregate Demand?
Total spending on goods in a period of time at a given price
Actual Demand
Total supply in a period of time
Total demand of a good in a period of time
26
When should the Government raise interest rates?
When the inflation rate is too high
In a depression
When Aggregate supply is too high
In a recession
27
Renda Brasil and Bolsa Familia are good examples of...
Negative income tax
God only knows
Subsides
Positive income taxes
28
Which of the following citizens is most likely to be affected by high inflation?
A Shopkeeper
A factor worker
A doctor with a suburban practice
A retired grandmother on a fixed income
29
What does a Laffer curve illustrate?
increasing tax rates may end up in reducing overall tax revenue
higher tax rates generates higher tax revenue
higher tax rates generates lower tax revenue
there is a trade-off between high tax-rates and high tax-revenue
30
When aggregate demand in an economy outpaces aggregate supply
Surplus
Cost Push Inflation
Demand-Pull Inflation
Deflation
31
Which of the following is not a tool of the Central Bank ?
Reserve Rate
Changing interest rates
Open Market Opperations
Raising Taxes
32
The Laffer curve predicts that
The tax rate will maximise tax if elastic
The tax rate will always be 20% in MEDCs
Top Tax rate rises generate less unemployment
At very high tax rates less revenue is generated
33
The Expansionary Policy of the fiscal policy
increases government spending and decreases taxes
decreases government spending and taxes
increases government spending and taxes
decreases government spending and increases taxes
34
Which of these is NOT a type of Fiscal Policy?
Inflationary
Expansionary
Contractionary
none of the above is correct

Macroeconomics 2 Flashcards | StudBud