Econ 2301 exam 3. Principles of Macroeconomics ECON 2301 Instructor 2018-12-22

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Principles of Macroeconomics ECON 2301 Instructor

econ 2301 exam 3

D the dollar strengthened and the effect on aggregate supply was greater than the effect on aggregate demand. A An individual is willing to work more hours when the nominal wage rises by 5 percent and the overall price level rises by 4 percent. C import the goods in which it has a comparative advantage. D government trade disincentives regarding Colombian coffee make such trade possible. You plan to go to school this summer.

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ECON 2301 Exam 1 Learning Objectives

econ 2301 exam 3

B the area beneath the market supply curve and above the market clearing price plus the area above the market demand curve and beneath the market clearing price. B promised benefit payouts are growing more rapidly than likely sources of revenues, indicating a future inability to keep the system operating. C people increase saving because they anticipate higher future taxes, resulting in a reduction in current consumption spending that offsets the increased government spending. C The demand for coffee would decrease. C when the production possibilities curve shifts outward to the right.

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Principles of Macroeconomics ECON 2301 Instructor

econ 2301 exam 3

If the federal government borrows from the private sector to pay for increased budget deficits and interest rates increase, this will cause A a decrease in planned investment and planned consumption. C economists who conclude that money illusion is widespread. B when a country can produce all goods more quickly than any other country. B Jane purchases a new car for commuting to and from school. B is a relatively new idea that developed in the years during and after the Great Depression. Economists use natural experiments, statistical investigations, and economic experiments. B generates an equal increase in total spending because government spending makes up part of total spending.

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ECON 2301 Exam 1 Learning Objectives

econ 2301 exam 3

Which of the following statements is true? A decrease in aggregate demand will cause A prices to fall according to classical economists, and unemployment to increase according to Keynes. In the circular flow of income, A. Suppose the economy is initially experiencing a recessionary gap. B for which the desired quantity is less than what nature provides at a zero price. B wages and prices are too flexible. C Corporations always evade taxes so that consumers ultimately bear the tax burdens as taxpayers. C aggregate supply to fall according to classical economists, and prices to fall according to Keynes.

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MacroEconomics 2301 Exam #1 Practice

econ 2301 exam 3

A The change in taxes due divided by the change in taxable income B The change in taxable income divided by the change in taxes due C Total taxes due divided by total taxable income D Total taxable income divided by total taxes due 8. A major hurricane causes production problems in Gulf Coast region of the United States. Refer to the above figure. Compared to the Keynesian transmission mechanism, the monetarist transmission mechanism is a. D developed during World War I. . The Federal Reserve System is a.

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HCCS ECON 2301

econ 2301 exam 3

D it reduces both nominal and real interest rates. C the consumer has been fooled by money illusion. Which of the following is considered investment? Banks create money by printing it. C one good is superior to another and drives it out of the market. Fiscal policy may end up being destabilizing to an economy because A there is never a long enough time lag.

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ECON 2301 Exam 1 Learning Objectives

econ 2301 exam 3

C Johnny buys a new car for his wife as an anniversary gift. Which best describes the Keynesian transmission mechanism when the money supply rises? D it causes increases in unemployment. B fell; causing net exports to decrease and aggregate demand to fall. D import the goods in which it has an absolute advantage. If the supply and demand curves for a product both decrease, then equilibrium: A. A There would be a shortage of coffee.

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MacroEconomics 2301 Exam #1 Practice

econ 2301 exam 3

The market wage for trained nurses is currently above the equilibrium wage. D The price system allows for economic efficiency. B Since the mid-1940s, expenditures on income security and health programs have increased considerably as a percentage of total federal government spending. C Engage in contractionary fiscal policy by reducing government spending. D the C + I + G + X line will shift up but the aggregate demand curve will not shift. C goods that are scarce, for which the quantity demanded exceeds the quantity supplied at a zero price.

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