Macroeconomics Private and Public Choice

Business

Quiz 9 :

An Introduction to Basic Macroeconomic Markets

Quiz 9 :

An Introduction to Basic Macroeconomic Markets

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The macroeconomy is said to be in long-run equilibrium only if
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A

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In the short run, if prices were above equilibrium,
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D

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Suppose that your bank pays 5 percent interest on your savings account balance. Is this the nominal or real interest rate? What would be your real interest rate?
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This is the nominal interest rate. The real interest rate would be the 5 percent minus the rate of inflation.

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What is the difference between short-run equilibrium and long-run equilibrium in the goods and services market?
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As prices rise, consumers and businesses will want to hold larger money balances. This will lead to
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Fiscal policy is
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When the loanable funds and foreign exchange markets are in equilibrium,
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What are the three reasons why the aggregate demand curve slopes downward? Give an example of each.
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Within the framework of the AS/AD model, which of the following is a true statement regarding short-run aggregate supply?
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In 2000, a major U.S. oil company began exploration off the southeastern coast of the United States. Suppose the company discovers huge reserves of natural gas. Using the aggregate demand/ aggregate supply model, predict what shifts will occur and what will happen to output and prices in both the long and short runs.
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How does the aggregate goods and services market differ from the regular supply and demand graph in Chapter 3? Address the measures of price, quantity, and the demand and supply curve(s).
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When the economy is in macro equilibrium,
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The exchange rate is
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Monetary policy can be most accurately described as
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Why do we use two supply curves in the aggregate goods and services market? What is the difference between them, and why do they have different slopes?
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As the real interest rate in the domestic loanable funds market increases,
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Suppose that severe floods destroyed farms, homes, and businesses in the Midwest. Use the aggregate demand/aggregate supply model, to explain the changes you would expect to take place and the effects you would expect these floods to have on both output and prices. (Include both short-run and long-run effects.)
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Which of the following are leakages from the circular flow of income?
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The inflationary premium is that portion of the interest rate that reflects
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A depreciation in the U.S. dollar on the foreign exchange market will
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