It\'s extremely imperative I get the correct answer on these questions, which wi

Question

It's extremely imperative I get the correct answer on these questions, which will help me learn the material for an upcoming exam. Please try to answer these questions correctly!

1. In the neoclassical growth model, an increase in the rate of population growth will
a. Raise the growth rate of output
b. Increase the level of output per capita
c. Increase the steady-state capital-labor ratio
d. All of the above
e. Only B and C

2. In the AS-AD model, a shift of the AD-curve to the right could be caused by
a. A decrease in taxes
b. A decrease in government transfer payments
c. An increase in money demand
d. A decrease in defense spending
e. Both A and C

3. Advantages of holding money rather than less liquid assets such as bonds or stocks include
a. The ability to engage in day-to-day transactions with ease and convenience
b. The ability to take advantage of unforeseen opportunities to make potentially profitable purchases
c. The lowering of overall portfolio risk
d. Protection against loss in the market values of other assets in periods of rising interest rates
e. All of the above

4. In the endogenous growth model, the reason that countries with higher saving rates may have higher equilibrium growth rates is that
a. People who save more also are more industrious
b. Higher income allows for more savings
c. A higher saving rate allows for more investment in human capital which ultimately enhances economic growth
d. Having more capital equipment is more important than having better capital equipment
e. None of the above

5. In the Keynesian aggregate supply curve case,
a. Firms will always supply the amount of goods demanded at the existing price level
b. Consumers will demand whatever is supplied by firms at each price
c. The economy is always at full employment
d. Unemployment is always at its natural rate
e. All of the above

Explanation / Answer

1.a 2.c 3.e 4.c 5.e

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