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Macro Misc. Review Flashcards | StudBud
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Macro Misc. Review
Macro Misc. Review
30 terms
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StudBud Administration
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econ
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
Second-hand sales and purely financial (stocks) transactions are excluded from the GDP.
True
False
2
If the GDP gap is $500 million, the multiplier is 5, how much does the gov need to spend?
$2.5 billion
$25 million
$100 million
3
If there is an increase in net exports what will happen to AD?
decrease/shift left
increase/shift right
4
Increase government spending and/or decreased taxes.
Expansionary Fiscal Policy
Contractionary Fiscal Policy
Expansionary Monetary Policy
Contractionary Monetary Policy
5
A decrease in foreign demand for US bonds will result in
increase for the US dollar
decrease for the US dollar
6
What Monetary Policy tool is illustrated here?
Selling Bonds/Govt Securities
Buying Bonds/Govt Securities
Decrease in Taxes
Increase in Government Spending
7
A decrease in SRAS in the AD/AS model results in what effect on the Short-run Phillips Curve?
SRPC shifts right
Movement down the SRPC
Movement up the SRPC
SRPC shifts left
8
Output adjusted for price level changes.
Nominal GDP
Real GDP
9
What economic situation is illustrated?
Recessionary Gap
Economic Growth
Inflationary Gap
Stagflation
10
What is illustrated on this graph?
Inflation
Stagflation
Crowding Out
Recession
11
FOREX: If the dollar appreciates, what will happen to US exports.
decreases
increases
12
What do the following graphs illustrate?
stagflation
recessionary gap
inflationary gap
economic growth
13
An increase in wages will have what effect on SRAS?
increase
decrease
14
Crowding out increases the demand for loanable funds & raises real interest rates as a result
Expansionary Fiscal Policy
Expansionary Monetary Policy
Deficit Spending
Contractionary Fiscal Policy
15
A decrease or shift left in AD will result in a decrease in
unemployment and price level
output and price level
output and unemployment
only price level
16
Increase in foreign demand for US goods/services or investment results in
increase supply of the foreign currency
Decrease demand for US dollar
Depreciation of US dollar
decrease supply of the foreign currency
17
A bank can create money by the amount of its
Required Reserves
Demand Deposits
Excess Reserves
18
All of the following are hurt by unanticipated inflation EXCEPT
Creditors
Fixed income recipients
Debtors
Savers
19
The natural rate of unemployment exist at full employment (Yf) and it is __%
4-6%
5-8%
2-3%
0%
20
FOREX: Increase in interest rates will ____ foreign demand for US bonds/securities.
decreases
increases
21
FOREX: An increase in demand for US goods by foreign consumers will __demand for the US dollar.
increase
decrease
22
If the RR is 10%, Kim deposits $1000, how much will the bank keep on reserve?
$900
$100
$9,000
$1000
23
What economic situation is illustrated?
Recessionary Gap
Stagflation
Economic Growth
Inflationary Gap
24
Increase in inputs or resources prices (i.e. price of oil) will __ SRAS.
decrease/shift left
Increase/shift right
25
Transfer payments and tax brackets
nondiscretionary fiscal policy
discretionary fiscal policy
automatic stabilizers
26
__ workers are not counted in the unemployment rate.
Structural
Cyclical
Discouraged
Frictional
27
The Fed can increase the Money Supply by
Lowering Taxes
Buying bonds
decreasing the discount rate
decreasing the reserve requirement
28
All of the following true about crowding out Except?
lowers real interest rates
weakens fiscal policy
crowds-out private sector investment
reduces business investment
29
LRAS will _____ if quality or quantity of resources, tech, training etc. increase.
Shift left
Shift right
30
SRAS: Decrease in output and increase in price level and unemployment is know as
Inflation
depression
stagflation
