Questions
Use the following diagram and your intuition to answer the next fivequestions.   40.  The government removes a...

Use the following diagram and your intuition to answer the next fivequestions.  

40.  The government removes a tariff on imported consumer goods.  What is the most likely short-run effect on the aggregate price level and the level of unemployment?
A.   Price level increases, unemployment increases.
B.    Price level increases, unemployment decreases.
C.    Price level decreases, unemployment increases.
D.   Price level decreases, unemployment decreases.

41.  The level of aggregate output demanded decreases as the aggregate price level increases because
A.   higher prices make market interest rates decrease.
B.    as prices increase, producers will sell more output.
C.    higher prices decrease the value of household wealth.
D.   as prices increase, producers withhold output in anticipation of even higher prices.

42.  There is an increase in government spending.  Aggregate output will __________ and the aggregate price level will ___________.
A.   increase; increase
B.    increase; decrease
C.    decrease; increase
D.   decrease; decrease

43.  There is an increase in saving by households.  Unemployment will ___________ and inflation will ___________.
A.   increase; increase
B.    increase; decrease
C.    decrease; increase
D.   decrease; decrease

44.  In an aggregate demand/aggregate supply diagram, ____________ is plotted on the vertical axis and _____________ is plotted on the horizontal axis.
A.   price; quantity
B.    aggregate price level; aggregate output
C.    quantity; price
D.   aggregate output; aggregate price level

45.  In a closed economy, with no government sector, when planned saving is less than planned investment
A.   actual investment will exceed actual saving.
B.    actual saving will exceed actual investment.
C.    unplanned inventory investment will be positive.
D.   unplanned inventory investment will be negative.

46.  In the short run, if private investment increases we could correctly state that
A.   the aggregate demand curve will shift to the right.
B.    private saving will increase because investment and saving must be equal.
C.    private saving will decrease because investment is the opposite of saving.
D.   the aggregate demand curve will shift to the left.

47.  Which of the following is included in GDP but not in national income?
A.   Capital consumption allowance.
B.    Undistributed corporate profits.
C.    Personal income taxes.
D.   Dividends.

48.  In Arbez, between 2008 and 2009, nominal GDP rose by 3.6% while real GDP fell by 1.2%. We can conclude that, between 2008 and 2009, the aggregate price level
A.   rose by about 4.8%.
B.    rose by about 2,4%.
C.    fell by about 2.4%.
D.   fell by about 4.8%.

49.  GDP is 1,200, consumption is 900, planned gross private investment is 150, exports are 50, imports are 125.  Government spending is 300.  Inventories will
A.   rise by 75.
B.    rise by 325.
C.    fall by 75.
D.   fall by 325.

50.  The value of GDP can be found by adding together
A.   wages, investment, government spending, and depreciation.
B.    consumption, government spending, transfer payments, and net exports.
C.    wages, consumption, investment, and imports.
D.   consumption, investment, government spending, and net exports.

In: Economics

a) What is the present value of $1,200 per year, at a discount rate of 8...

a) What is the present value of $1,200 per year, at a discount rate of 8 percent, if the first payment is received 9 years from now and the last payment is received 28 years from now?

b) ABC Co. wants to sell you an annuity that will pay you $500 per quarter for 25 years. You want to earn a minimum rate of return of 5.1 percent. What is the most you are willing to pay today to buy this annuity?

c) You are scheduled to receive annual payments of $4,000 for each of the next 8 years. The discount rate is 8 percent.

Part 1: What is the present value if you receive these payments at the beginning of each year rather than at the end of each year?

Part 2: What is the difference in the present value if you receive these payments at the beginning of each year rather than at the end of each year?

d) Prepare an amortization schedule for a five-year loan of $60,000. The interest rate is 7 percent per year, and the loan calls for equal annual payments.

In: Finance

4. Which of the following statements is (are) correct? (x) If households view a tax cut...

4. Which of the following statements is (are) correct?
(x) If households view a tax cut as being temporary, the tax cut has more of an effect on aggregate demand than if households view it as permanent.
(y) A decrease in taxes is an example of an expansionary fiscal policy and that policy will probably cause the aggregate demand curve to shift to the right.
(z) An increase in government purchases coupled with a decrease in taxes is an expansionary fiscal policy that will increase the budget deficit.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only.
E. (x) only


5. which of the following statements is (are) correct?
(x) The multiplier effect is the multiplied impact on aggregate demand of a given increase in government purchases of goods and services.
(y) The marginal propensity to consume (MPC) is defined as the fraction of extra income that a household consumes rather than saves and the larger the MPC the larger the multiplier effect.
(z) According to the multiplier effect, an increase in government purchases causes interest rates to increase which increases investment spending.
A. (x), (y) and (z) B. (x) and (y) only
C. (x) and (z) only D. (y) and (z) only.
E. (y) only

Which of the following statements is (are) correct?
(x) According to the textbook, an increase in government spending on goods to build or repair transportation infrastructure and education facilities shifts the aggregate demand curve to the right and, in the long run, shifts the aggregate supply curve to the right.
(y) According to the crowding-out effect, an increase in government purchases causes interest rates to rise and the interest rate increase causes an increase in investment spending.
(z) The multiplier effect amplifies the effects of an increase in government expenditures, while the crowding-out effect diminishes the effects.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only.
E. (z) only

In: Finance

4. Which of the following statements is (are) correct? (x) If households view a tax cut...

4. Which of the following statements is (are) correct?
(x) If households view a tax cut as being temporary, the tax cut has more of an effect on aggregate demand than if households view it as permanent.
(y) A decrease in taxes is an example of an expansionary fiscal policy and that policy will probably cause the aggregate demand curve to shift to the right.
(z) An increase in government purchases coupled with a decrease in taxes is an expansionary fiscal policy that will increase the budget deficit.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only.
E. (x) only


5. , which of the following statements is (are) correct?
(x) The multiplier effect is the multiplied impact on aggregate demand of a given increase in government purchases of goods and services.
(y) The marginal propensity to consume (MPC) is defined as the fraction of extra income that a household consumes rather than saves and the larger the MPC the larger the multiplier effect.
(z) According to the multiplier effect, an increase in government purchases causes interest rates to increase which increases investment spending.
A. (x), (y) and (z) B. (x) and (y) only
C. (x) and (z) only D. (y) and (z) only.
E. (y) only

6. Which of the following statements is (are) correct?
(x) According to the textbook, an increase in government spending on goods to build or repair transportation infrastructure and education facilities shifts the aggregate demand curve to the right and, in the long run, shifts the aggregate supply curve to the right.
(y) According to the crowding-out effect, an increase in government purchases causes interest rates to rise and the interest rate increase causes an increase in investment spending.
(z) The multiplier effect amplifies the effects of an increase in government expenditures, while the crowding-out effect diminishes the effects.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only.
E. (z) onl

In: Economics

Keeping it together and falling apart: Women’s dynamic experience of birth. what is the purpose of...

Keeping it together and falling apart: Women’s dynamic experience of birth.

what is the purpose of the study

what is the approach used to stu the problem of interest

which data collection method is used in this study

In: Nursing

There are four basic inventory cost flow assumptions. What are they and how are they calculated?...

There are four basic inventory cost flow assumptions. What are they and how are they calculated? What is the impact of each on the balance sheet and on the income statement when:

1. Prices are rising?

2. Prices are falling?

In: Accounting

Does current flow from positive to negative, or negative to positive? Which way does current flow...

Does current flow from positive to negative, or negative to positive? Which way does current flow across the membrane during the rising phase of the action potential? During the falling phase?

In: Biology

1) Name three tools of the Federal Reserve. 2) Explain each tool AND how it's used...

1) Name three tools of the Federal Reserve.

2) Explain each tool AND how it's used to keep the market from getting too hot (inflation) our falling into a recession.

In: Economics

A small coin, initially at rest, begins falling. If the clock starts when the coin begins...

A small coin, initially at rest, begins falling. If the clock starts when the coin begins to fall, what is the magnitude of the coin's displacement between t1 = 0.188 s and t2 = 0.845 s?

In: Physics

2. Define New Terms: Free Fall Acceleration, Air Resistance, and Terminal Velocity. 3. Offer a brief...

2. Define New Terms: Free Fall Acceleration, Air Resistance, and Terminal Velocity.

3. Offer a brief explanation for the discrepancy between the accelerations of the small and large balls for free falling.

In: Physics