 |
| 1 | |
If inventories are unexpectedly declining at the current level of GDP: |
| | A) | GDP exceeds the level of current expenditures |
| | B) | GDP is at its equilibrium level |
| | C) | current expenditures exceed the level of GDP and GDP will fall |
| | D) | GDP is below its equilibrium level |
|
|
|
| 2 | |
Use the following diagram of a private economy (no government sector) to answer the following question.
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073273082/384256/quiz9b_2.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (12.0K)</a>]]>
Refer to the diagram. If exports are $40 billion and imports are $60 billion, equilibrium GDP is: |
| | A) | $60 billion |
| | B) | $100 billion |
| | C) | $120 billion |
| | D) | $160 billion |
|
|
|
| 3 | |
According to Say's Law, demand creates its own supply. |
| | A) | True |
| | B) | False |
|
|
|
| 4 | |
Answer the next question on the basis of the following information for a private open economy:
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073273082/384256/quiz9b_4.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (3.0K)</a>]]>
In equilibrium, the level of saving is: |
| | A) | $20 |
| | B) | $30 |
| | C) | $50 |
| | D) | $60 |
|
|
|
| 5 | |
A simultaneous and equal increase in government spending and taxes will: |
| | A) | have no impact on GDP |
| | B) | help to relieve an inflationary expenditure gap |
| | C) | increase GDP |
| | D) | decrease GDP |
|
|
|
| 6 | |
Answer the next question on the basis of the following information for a private open economy:
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073273082/384256/quiz9b_6.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (11.0K)</a>]]>
Refer to the table. The after-tax MPC in the economy is: |
| | A) | .5 |
| | B) | .67 |
| | C) | .75 |
| | D) | .8 |
|
|
|
| 7 | |
Answer the next question on the basis of the following information for a private open economy:
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073273082/384256/quiz9b_7.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (12.0K)</a>]]>
Refer to the table. The equilibrium level of GDP in this economy is: |
| | A) | $150 |
| | B) | $200 |
| | C) | $250 |
| | D) | $300 |
|
|
|
| 8 | |
All else equal, the government spending multiplier: |
| | A) | equals the tax multiplier |
| | B) | equals the investment multiplier |
| | C) | is less than the tax multiplier |
| | D) | is less than the net export multiplier |
|
|
|
| 9 | |
Net exports will be positive: |
| | A) | at the equilibrium level of GDP |
| | B) | whenever GDP is below its equilibrium level |
| | C) | whenever GDP exceeds its equilibrium level |
| | D) | if exports exceed imports |
|
|
|
| 10 | |
Answer the next question on the basis of the following information for an open economy:
 <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg::::/sites/dl/free/0073273082/384256/quiz9b_10.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (3.0K)</a>]]>
Refer to the above information. The equilibrium level of GDP is: |
| | A) | $300 |
| | B) | $360 |
| | C) | $380 |
| | D) | $400 |
|
|
.