Download In order to study the macro economy we must combined prices and quantities generated and more Exams Macroeconomics in PDF only on Docsity!
Question 1 0 .4 pts
In order to study the macro economy we must combined prices and quantities generated in single-product markets into broad aggregates. Group of answer choices True False
Question 20.4 pts
Which of the following statements is true? Group of answer choices In the US economy the net export sector is positive. The aggregate supply curve is vertical if the price level is equal to per unit cost of production Government spending is the largest component of aggregate demand. Aggregate production sums up the four major components C+I+G+Xn in the US economy. Aggregate demand is the sum of total output produced by all firms in the US.
Question 30.4 pts
Consumption accounts for _______________ percent of total expenditures in the US economy. Group of answer choices 70 58 48 19 20
Question 40.4 pts
If Government tax revenue exceeds Government spending the result of the budget is Group of answer choices an increase in investment a decrease in savings a shortage a surplus an increase in the deficit
Question 6 0.4 pts
The group that sets the Federal Reserve System policy on buying and selling government securities is the: Group of answer choices Federal Open Market Committee Federal Depository Insurance Corporation Council of Economic Advisers Federal Organization of Monetary Authority Federal Bond Sale Authority
Question 70.4 pts
If the economy is experiencing a recession that would be considered, a negative, GDP gap. Group of answer choices True False
Question 80.4 pts
An economist who favored expanded government would recommend: Group of answer choices tax increases during recession and tax cuts during inflation. tax cuts during both recession and inflation tax cuts during recessions and reduction in government spending during inflation. increases in government spending during a recession and tax increases during inflation. tax cuts during recession and tax increases during inflation
Question 90.4 pts
In the US economy the money supply is controlled by the: Group of answer choices Senate committee on Banking and Finance World Bank US Congress US Treasury Department Federal Reserve System
Federal Open Market Committee. Federal Organization for Money Creation
Question 160.4 pts
Aggregate demand will shift to the right if one or more of its the components increases spending (C+I+G+Xn). Group of answer choices True False
Question 180.4 pts
Fiscal policy is mainly undertaken by the Federal Reserve. Group of answer choices True False
Question 190.4 pts
A negative GDP gap is the same as an inflationary gap. Group of answer choices True False
Question 210.4 pts
The basic policy-making body in the US banking system is the: Group of answer choices Joint Economic Agency. Federal Open Operations Committee (FOOC) Board of Governors of the Federal Reserve.
Council of Economic Advisors. Federal Monetary Authority.
Question 220.4 pts
The business cycle will alternate, if two or more of the components of aggregate demand decrease or increase spending. Group of answer choices True False
Question 37 0.4 pts
Which of the following statements is true? Commercial banks print their own money and indirectly effect the money supply. To raise their own reserves, banks must lend more money. Reserves are a liability for a bank. Banks' lending ability is limited to their excess reserves. Actual reserves and required reserves equal excess reserves.
Question 470.4 pts
The best corrective measure, used by the federal reserve to cure inflation is? Group of answer choices Decrease the discount rate Buy bonds from the public Sell bonds to the public in an open market operation Charge the public (households and businesses) a discount rate Reduce the required reserve ratio
Question 49 0.4 pts
Suppose the MPC is .8 what is the multiplier: Group of answer choices 5
3 4
