stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
ECO2013 Review Macroeconomics Flashcards | StudBud
Explore
/
ECO2013 Review Macroeconomics
ECO2013 Review Macroeconomics
46 terms
·
StudBud Administration
·
569 plays
Final review for ECO2013 Macroeconomics.
Flashcards
46 cards
F
Practice quiz
P
Host live
L
Questions
46
Answers
1
If the exchange rate for 1 euro=1 dollar changes to 1 euro= 2 dollars, what happened?
The dollar appreciated
The two examples aren't connected.
The euro appreciated
The euro depreciated
2
LRAS shows us:
Production at full employment
The average prive of all goods
Inflationary expectations
Production in 5 years
3
Lowering the reserve ratio is an example of:
Contractionary Monetary Policy
Expansionary Fiscal Policy
Contractionary Fiscal Policy
Expansionary Monetary Policy
4
Unemployment due to worker skills not matching the economies needs.
Seasonal
Cyclical
Structural
Frictional
5
Contractionary Monetary Policy results in:
Increased Money Supply
Reduced Money Supply
MD increases
AD shifts to the right
6
Lowering government spending is an example of:
Expansionary Monetary Policy
Expansionary Fiscal Policy
Contractionary Fiscal Policy
Contractionary Monetary Policy
7
Money functions as
a store of value, a unit of account, and amedium of exchange.
a store of value.
a unit of account.
a medium of exchange.
8
Nominal GDP is adjusted for price changes using
the Consumer Price Index (CPI).
the Producer Price Index (PPI).
exchange rates.
the GDP price index.
9
Comparative advantage occurs when a country can:
Produce more of a good
Produce less of a good
Produce a good for a lower opportunity cost
Produce a good for a higher opportunity cost
10
When you deposit cash into a checking account, what happened?
Changed forms of M1
Changed M2 into M1
Changed forms of M2
Changed M1 into M2
11
Raising the discount rate is an example of:
Expansionary Fiscal Policy
Contractionary Monetary Policy
Contractionary Fiscal Policy
Expansionary Monetary Policy
12
Lowering taxes is an example of:
Expansionary Fiscal Policy
Contractionary Monetary Policy
Contractionary Fiscal Policy
Expansionary Monetary Policy
13
In a flexible exchange rate, the _____ determines the exchange rate?
Government
Market
14
The label for the x axis in the AD/AS graph is:
rGDP
Price Level
Unemployment
Interest Rate
15
If box A represents households, B the product market, and C firms, and if flow (3) represents revenues, then flow (1) ..
money income.
costs.
resources.
consumption expenditures.
16
This image is an example of a/an:
Inflationary Gap
Recessionary Gap
Phillips Curve
17
Increasing the Money Supply will result in what?
AD shifts to the right
AD shifts to the left
Investment will decrease
There will be no effects
18
Which point is unattainable?
A
B
E
D
19
Unemployment due to a recession.
Frictional
Seasonal
Structural
Cyclical
20
Why does SRAS shift back to LRAS in the long run?
Prices and wages are no longer sticky.
Businesses can change their suppliers.
Businesses can change their prices.
Wages aren't flexible.
21
What is the reserve ratio for this bank?
1%
10%
5%
8%
22
Which of the diagrams for the U.S. economy best portrays the effects of a substantial reduction in government spending?
B
C
A
D
23
Raising government spending is an example of:
Contractionary Fiscal Policy
Expansionary Fiscal Policy
Contractionary Monetary Policy
Expansionary Monetary Policy
24
Selling bonds is an example of:
Expansionary Monetary Policy
Contractionary Monetary Policy
Expansionary Fiscal Policy
Contractionary Fiscal Policy
25
To close a $300 billion recessionary gap, how much does the gov need in change spending?MPC=0.5
$150 billion
$300 billion
$200 billion
$100 billion
26
The formula for GDP is:
C+I+G+Exports
G+I+P+X
C+V+G+X
C+I+G+X
27
Macroeconomics can best be described as the
study of how supply and demand determine pricesin individual markets
study of the aggregates of the economy or the economy as a whole.
analysis of how firms attempt to maximize theirprofits.
analysis of how a consumer tries to spendincome.
28
A budget deficit occurs when:
Income = Spending
Income > Spending
Income < Spending
It can't happen
29
Calculate the max possible change in rGDP from a $100 mil increase in gov spending. MPC=0.75
100 million
$400 million
200 million
133 million
30
The consumer price index was 177.1 last year and 179.9 this year. Therefore, the current rate of inflation is about
1.6 percent.
4.1 percent.
3.4 percent.
2.8 percent.
31
Raising the reserve ratio is an example of:
Expansionary Fiscal Policy
Contractionary Monetary Policy
Expansionary Monetary Policy
Contractionary Fiscal Policy
32
The Natural Rate of unemployment uses structural and _____ unemployment.
Seasonal
Frictional
Cyclical
33
Decreasing the Money Supply results in:
A lower interest rate
More money available
A higher interest rate
34
An increase in the supply of loanable funds results in:
A decrease in the interest rate
A shift in the demand for loanable funds
An increase in the aggregate price level
An increase in the interest rate
35
Which point is efficient?
B
E
D
F
36
Unemployment due to changing jobs.
Seasonal
Frictional
Structural
Cyclical
37
Buying bonds is an example of:
Expansionary Monetary Policy
Contractionary Fiscal Policy
Expansionary Fiscal Policy
Contractionary Monetary Policy
38
This image is an example of a/an:
Inflationary Gap
Recessionary Gap
Phillips Curve
Money Market Graph
39
I am retired, but I am not unemployed.
False
True
40
Expansionary Fiscal Policy results in what?
Increased money supply
Shifting AD to the left
Shifting AD to the right
Shifting AS to the right
41
A consumer price index is a:
market basket of producer inputs.
collection of every good every consumer will buy.
market basket of consumer goods.
the average amount of goods in the market.
42
During a recession, which of the following is false?
Equilibrium is to the right of LRAS.
Resources are used inefficiently.
There is a recessionary gap.
Wages will decrease in the long run.
43
Lowering the discount rate is an example of:
Expansionary Fiscal Policy
Contractionary Fiscal Policy
Expansionary Monetary Policy
Contractionary Monetary Policy
44
Labor productivity is measured by
real output per worker-hour.
the ratio of capital to labor.
the ratio of worker-hours to real GDP.
real output per capita.
45
Which point is inefficient?
E
D
B
A
46
Raising taxes is an example of:
Expansionary Fiscal Policy
Contractionary Fiscal Policy
Contractionary Monetary Policy
Expansionary Monetary Policy
