Questions from General Economics

Q: 4.1. Suppose the supply of money increases, causing

4.1. Suppose the supply of money increases, causing output to exceed full employment. Prices will __________ and real GDP will __________ in the short run, and prices will __________ and real GDP will...

Q: 1.1. Arthur Okun distinguished between auction prices, which

1.1. Arthur Okun distinguished between auction prices, which changed rapidly, and __________ prices, which are slow to change. 1.2 Auction prices are prices that adjust __________, while custom price...

Q: 2.1. Which of the following is not a component

2.1. Which of the following is not a component of aggregate demand? a. Consumption b. Investment c. Government expenditures d. The supply of money e. Net exports 2.2. When we draw the aggregate...

Q: 3.1. The __________ depicts the relationship between the level

3.1. The __________ depicts the relationship between the level of prices and the total quantity of goods and services that firms supply. 3.2. A decrease in material costs will shift the short-run agg...

Q: 3.1. _________ was the first president to consciously use

3.1. _________ was the first president to consciously use fiscal policy to stabilize the economy. 3.2. Since both taxes and government spending increased in the United States during the 1930s, there w...

Q: 2.1. Fiscal year 2015 began on October 1,

2.1. Fiscal year 2015 began on October 1, _________. 2.2. Corporate taxes are the largest component of federal revenue. _________ (True/False) 2.3. Federal spending consists of _________ and _______...

Q: 1.1. To decrease aggregate demand, a government can

1.1. To decrease aggregate demand, a government can either decrease spending or _________ taxes. 1.2. Fiscal policy refers to the _________ and _________ policies used by the government to influence...

Q: A.1. Find the Multiplier. An economy has a

A.1. Find the Multiplier. An economy has a marginal propensity to consume (b) of 0.6 and a marginal propensity to import (m) of 0.2. What is the multiplier for government spending for this economy? A...

Q: 4.1. Suppose the supply of labor increases. Draw

4.1. Suppose the supply of labor increases. Draw a graph to show how potential output and wages change. 4.2. Draw a graph to show how potential output and wages change when the stock of capital decre...

Q: 3.1. In our simple model, if C =

3.1. In our simple model, if C = 100 + 0.8y, and I = 50, equilibrium output will be _________. 3.2. If in Exercise 3.1 I increase to 100, a. the equilibrium income will be _________. b. the multipli...