11) The unemployment rate equals: 11) ______ A)(laborforce-employed)/laborforce.
ID: 1092670 • Letter: 1
Question
11) The unemployment rate equals: 11) ______ A)(laborforce-employed)/laborforce. B)laborforce/population. C) unemployed/employed. D) (employed - unemployed)/labor force.
12) Which of the following is an assumption in the Solow Model? 12) ______ A) no foreign sector B) no government C) constant population
D) All of the above are assumptions of the Solow Model.
13) "Growth accounting" is concerned with explaining which of the following? A) sources of unemployment B) sources of interest rate changes C) sources of inflation D) sources of output growth
13) ______
14) If the economy experiences an increase in the amount of capital stock per worker, then we say that the economy is experiencing: 14) ______
A) technological progress. B) capital widening. C) capital depreciation. D) capital deepening.
15) In the consumption function C = Ca + bY, the term b represents: 15) ______ A) the marginal propensity to consume. B) the marginal propensity to save. C) the multiplier effect. D) the autonomous consumption spending.
16) If the marginal propensity to consume is 0.2, the value of the marginal propensity to save is: A) 5. B) 1.25. C) 2. D) 0.8.
16) ______
17) Which of the following would cause the long-run aggregate supply curve to shift to the right? 17) ______ A) higher energy prices B) an increase in taxes C) an increase in the labor supply D) increases in government regulation
18) A decrease in the money supply will cause output: 18) ______ A) to increase in the short run; increase in the long run. B) to increase in the short run, decrease in the long run. C) to decrease in the short run; not change in the long run.
D) to decrease in the short run; decrease in the long run.19) The largest category of discretionary federal spending is: 19) ______ A) funding for the State Department. B) funding for the Interior Department. C) funding for the Defense Department.
D) funding for the Environmental Protection Agency. 20) Assume that the short-run AS is upward sloping. If the government chooses to reduce government expenditure or to
increase taxes, according to the Aggregate Supply - Aggregate Demand model:
20) ______
22) ______
A) the price level will fall and GDP will increase. B) the price level will rise and GDP will decrease. C) the price level will fall and GDP will decrease. D) the price level will rise and GDP will increase.
21) An increase in taxes or a decrease in spending will cause: A) the aggregate demand curve to the left. B) the SR aggregate supply curve to the right. C) the SR aggregate supply curve to the left.
D) the aggregate demand curve to the right.
21) ______
22) A reduction in government expenditure or an increase in taxes is defined as: A) contractionary fiscal policy. B) expansionary monetary policy. C) contractionary monetary policy. D) expansionary fiscal policy.
23) A decrease in the government expenditures will: 23) ______ A) shift the aggregate expenditures line downwards and shift the aggregate demand curve to the left. B) shift the aggregate expenditures line upwards and shift the aggregate demand curve to the left. C) shift the aggregate expenditures line downwards and shift the aggregate demand curve to the right. D) shift the aggregate expenditures line upwards and shift the aggregate demand curve to the right.
Explanation / Answer
11.) A)(laborforce-employed)/laborforce
12.) B) no government
13.) D) sources of output growth
14.) A) technological progress
15.) A) the marginal propensity to consume
16.) D.) 0.8
17.) C) an increase in the labor supply
18.) D) to decrease in the short run; decrease in the long run.
19.) C) funding for the Defense Department.
20.) C) the price level will fall and GDP will decrease
21.) D) the aggregate demand curve to the right.
22.) A) contractionary fiscal policy
23.) C) shift the aggregate expenditures line downwards and shift the aggregate demand curve to the right.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.