Macroeconomics Quiz # 13

The ratio of the increase in ________ to the increase in ________ is called the multiplier.

Equilibrium nominal GDP; autonomous expenditure

Equilibrium real GDP; autonomous expenditure

Autonomous expenditure; equilibrium real GDP

Induced expenditure; equilibrium real GDP

The circular-flow diagram shows that ________ should equal ________.

Total​ expenditure; total income.

Total​ income; total expenditure.

None of the above

The demand for dvd players does not change when a change in _______ occurs.

Decreases the quantity of DVD players demanded and results in a movement up along the demand curve for a DVD player

5 boxes of ramen noodles And the relative price of a can of shave gel is the money price of a can of shave gel divided by the money price of a box of ramen noodles

Price quantity demanded changes when a change in price occurs. the point will change along the demand curve.

Decrease; and the demand curve will shift leftward

The environment in which service is delivered is referred to as the ________.

Service encounter

Servicescape

Commercescape

Operational factor

Locational factor

The utility of a good is determined by how much _____ a particular consumer obtains from it.

Satisfaction.

Cost.

Usefulness.

Need fulfillment.

The unemployment rate that is consistent with full employment is known as __________________.

10 percent

The artificial rate of unemployment

The natural rate of unemployment

None of these

When a nation imports a good, its ________ surplus increases and its ________ surplus increases.

Consumer; consumer

Producer; producer

Producer; consumer

Total; consumer

________ are financial securities that represent promises to repay a fixed amount of funds.

Stocks

Bonds

Interest rates

Mutual funds

A tax cut ________ aggregate demand and ________.

Decreases; shifts the AD curve leftward

Decreases; shifts the AD curve rightward

Does not change; does not shift the AD curve

Increases; shifts the AD curve leftward

Increases; shifts the AD curve rightward

An expansionary fiscal policy either _____ government spending or _____ taxes.

Increases; decreases

Decreases; increases

Decreases;decreases

Increases; increases

An increase in taxes on labor income shifts the labor supply curve ________ and the ________.

Increases; decreases

Decreases; increases

Decreases;decreases

Increases; increases

An increase in wealth leads to ________ loanable funds.

Plus net investment

A decrease in supply of

Depreciation

Leftward; falls

Demand for a given good is inelastic, so it follows that if price rises, __________ will rise, too.

Quantity demanded

Total revenue

Total cost

Demand is said to be ____ when the quantity demanded changes the same proportion as the price.

Independent

Inelastic

Unit elastic

Elastic

During a business cycle expansion, total production ________ and total employment ________.

Increases; increases

Increases; decreases

Decreases; increases

Decreases; decreases

Everything else held constant, a decrease in net exports ________ aggregate ________.

Increases; demand

Decreases; demand

Decreases; supply

Increases; supply

Everything else held constant, an autonomous monetary policy easing ________ aggregate ________.

Increases; demand

Decreases; demand

Decreases; supply

Increases; supply

Inflation that is ________ than what is expected benefits ________ and hurts ________.

Short-run aggregate supply

Natural rate of unemployment.

Less; lenders; borrowers

Natural rate of output

A change in the price level produces a ________ the aggregate demand curve.

Shift in

Change in the slope of

Movement along

Government expenditure ________ change potential gdp and taxes ________ change potential gdp.

Can; can

Cannot; can

Can; cannot

Cannot; cannot

According to the classical dichotomy, when the money supply decreases, _____ will decrease.

The price level

Decrease; increase

-4 percent.

Decreased 2 percent.

As income taxes rise, disposable income __________, causing __________ the ad curve.

Increases; movement down along

Increases; a rightward shift of

Decreases; movement up along

Decreases; a leftward shift of

The crowding out effect refers to the ________ from ________ in the government's budget deficit.

Increase in investment; an increase

Increase in consumption; an increase

Decrease in employment; an increase

Decrease in consumption; a decrease

Decrease in investment; an increase

The money multiplier for the united states is __________.

Between 2 and 3

Between 4 and 5

Between 5 and 6

Between 6 and 7

A government budget surplus _______ loanable funds.

Decreases the demand for

Decreases the supply of

Increases the supply of

In the factor market, firms ________ and households ________.

That the poorest 20 percent of households receive less than 4 percent of total income

Supply goods and services; purchase goods and services

The goods market and the factor market

Pay rent, wages, interest, and profit; earn rent, wages, interest, and profit

The change in inventories, a component of aggregate supply, comprises roughly __________ of gdp.

1%

10%

20%

0.6%

A recessionary gap occurs when ________ so that real gdp is ________ potential gdp.

Aggregate supply increases; less than

Aggregate supply decreases; less than

Aggregate demand increases; greater than

Aggregate demand decreases; less than

Potential GDP decreases; greater than

A rise in mpc makes the total expenditures (te) curve __________ and __________ the multiplier.

Steeper; raises

Steeper; lowers

Flatter; raises

All of these

________ is the human resource that organizes labor, land, and capital.

Factors of production

Entrepreneurship

Factor markets

Human capital

National debt