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Use this information to answer questions 1 - 4

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Use this information to answer questions 1 - 4, assume the entire economy consists of only three markets.;Market 1 Market 2 Market 3;Price Qd Price Qd Price Qd;$9 10 $9 5 $9 50;$8 20 $8 10 $8 60;$7 30 $7 20 $7 70;$6 40 $6 30 $6 80;$5 50 $5 40 $5 90;Market 1 Market 2 Market 3;Price Qs Price Qs Price Qs;$9 50 $9 40 $9 90;$8 40 $8 30 $8 80;$7 30 $7 20 $7 70;$6 20 $6 10 $6 60;$5 10 $5 5 $5 50;1. Which of the following is the correct aggregate demand curve;Question 1 options;Price QAD;$27 65;$24 90;$21 120;$18 150;$15 180;Price QAD;$9 65;$8 90;$7 120;$6 150;$5 180;Price QAD;$27 180;$24 150;$21 120;$18 90;$15 65;Price QAD;$9 180;$8 150;$7 120;$6 90;$5 65;Save;Question 2 (1 point) Question 2 Unsaved;Which of the following is the correct aggregate supply curve;Question 2 options;Price QAD;$27 65;$24 90;$21 120;$18 150;$15 180;html>;Price QAD;$9 65;$8 90;$7 120;$6 150;$5 180;Price QAD;$27 180;$24 150;$21 120;$18 90;$15 65;Price QAD;$9 180;$8 150;$7 120;$6 90;$5 65;Save;Question 3 (1 point) Question 3 Unsaved;What is the equilibrium price level?;Question 3 options;$27;$21;$9;$7;Save;Question 4 (1 point) Question 4 Unsaved;What is the equilibrium output level?;Question 4 options;180;120;65;150;90;Save;Question 5 (1 point) Question 5 Unsaved;Reagan's plan for economic growth was called Supply-Side Economics. Which of the following was included in Reagan's plan?;Question 5 options;increase the use of tariffs;increase exports;increase private sector investment;increase governmental spending;Save;Question 6 (1 point) Question 6 Unsaved;Lyndon Baines Johnson (LBJ) started the current governmental debt by;Question 6 options;borrowing to finance the Korean War;borrowing to finance the Vietnam War;borrowing to finance World War II;increasing taxes;Save;Question 7 (1 point) Question 7 Unsaved;The sum of accumulated annual federal budget deficits minus budget surpluses refers to;Question 7 options;the national debt.;the cyclically unbalanced budget.;the trade deficit.;the federal government net worth.;Save;Question 8 (1 point) Question 8 Unsaved;Suppose you felt that the government should conduct monetary policy to correct for an inflationary period, but you also felt that the interest rate should not be changed. You would argue that the government should;Question 8 options;sell bonds;buy bonds;increase its exhaustive spending;decrease its non-exhaustive spending;Save;Question 9 (1 point) Question 9 Unsaved;Suppose you felt that the government should conduct fiscal policy to correct for recessionary period, but you also felt that the tax rate should not be changed. You would argue that the government should;Question 9 options;decrease the money supply;increase the money supply;increase its exhaustive spending;decrease its non-exhaustive spending;increase the interest rate;Save;Question 10 (1 point) Question 10 Unsaved;The MPS =.2, which of the following changes in AD eliminates a $50 million recessionary gap;Question 10 options;A $10 million increase in Import spending.;A $10 million decrease in Import spending.;A $50 million increase in Government spending.;A $50 million decrease in Government spending.;Save;Question 11 (1 point) Question 11 Unsaved;The MPC =.9, which of the following changes in AD eliminates a $100 million recessionary gap;Question 11 options;A $10 million increase in Investment spending.;A $5 million decrease in Investment spending.;A $100 million increase in Export spending;A $5 million decrease in Export spending.;Save;Question 12 (1 point) Question 12 Unsaved;Using fiscal policy, if the MPC =.8, which of the following changes in AD alleviates an inflationary gap of $100 billion.;Question 12 options;A $100 billion increase in the Money Supply.;A $20 billion increase in the Money Supply.;A $100 billion increase in Government spending.;A $20 billion decrease in Import spending.;A $20 billion decrease in Governmental spending.;Save;Question 13 (1 point) Question 13 Unsaved;In general, if the macroeconomy experiences inflation the federal government should;Question 13 options;Increase the aggregate demand.;Decrease the aggregate demand.;Create a balanced budget.;Eliminate the national debt.;Save;Question 14 (1 point) Question 14 Unsaved;The tax deferred attribute of your IRA represents;Question 14 options;you retirement account being non-taxable, until withdrawal;a reduction in your taxable income;an increase in your taxable income;IRAs being completely non-taxable;Save;Question 15 (1 point) Question 15 Unsaved;OPEC's cartel created the problem of Stagflation. What is Stagflation?;Question 15 options;simultaneous increases in debts and inflation;simultaneous increases in debts and unemployment;simultaneous increases in unemployment and inflation;simultaneous increases in debts and taxes;Save;Question 16 (1 point) Question 16 Unsaved;When the government focuses their spending increases primarily on one segment of the economy, which the following is likely to occur?;Question 16 options;A Crowding Effect;An inflationary expectation;A budget deficit;A budget surplus;Save;Question 17 (1 point) Question 17 Unsaved;The pre-tax contribution on your IRA represents;Question 17 options;you retirement account being non-taxable, until withdrawal;a reduction in your taxable income;an increase in your taxable income;pre-tax contributions do not effect IRAs.;Save;Question 18 (1 point) Question 18 Unsaved;Inflation that began in the 1960's was caused by;Question 18 options;increased governmental spending that increased interest rates to the private sector.;the economy being at full employment;government spending increases without raising taxes;savings and investment being the only leakage and injection that equaled in this time frame.;increased oil prices caused by OPEC;Save;Question 19 (1 point) Question 19 Unsaved;Who was the first President to promote zero deficit growth during their administration?;Question 19 options;George W Bush (43rd);Jimmy Carter;Ronald Reagan;George Bush (41st);Bill Clinton;Save;Question 20 (1 point) Question 20 Unsaved;Which of the following Presidents signed the Civil Rights Act?;Question 20 options;John Kennedy;Lyndon Baines Johnson;Martin Luther King;Richard Nixon;Jimmy Carter;Save;Question 21 (1 point) Question 21 Unsaved;In the history of the U.S. economy which of the following schools have had the most impact on the government during the given time period;Question 21 options;the Keynesian school before World War 2;the Classical school after World War 2;the Supply Siders in the early 1980's;the Keynesian school before 1884;Save;Question 22 (1 point) Question 22 Unsaved;Governmental debts are bad for an economy because;Question 22 options;interest payments on the debt tie up money that could be used elsewhere;debts render fiscal tools more effective than monetary tools;tax cuts are politically difficult to sell to the people of the United States;all of the above;Save;Question 23 (1 point) Question 23 Unsaved;Which of the following is an example of "trickle-down economics"?;Question 23 options;an income-tax cut that effects everyone.;large tax cuts causing large budget deficits.;a capital gains tax cut;Tax cuts tend to help higher income individuals more than lower income ones.;Save;Question 24 (1 point) Question 24 Unsaved;Inflation that began in the 1970's was caused by;Question 24 options;increased governmental spending that increased interest rates to the private sector.;the economy being at full employment;government spending increases without raising taxes;savings and investment being the only leakage and injection that equaled in this time frame.;increased oil prices caused by OPEC;Save;Question 25 (1 point) Question 25 Unsaved;Jimmy Carter's plan to stimulate the economy included;Question 25 options;An increase in the money supply;A decrease in the money supply;An increase in the interest rates;A decrease in the interest rates;Save;Question 26 (1 point) Question 26 Unsaved;Use this budget (assuming the government pays no interest and no debt existed before year 1) to answer questions 26-33;Revenues Expenditures;Year 1 $100 billion $550 billion;Year 1 $100 billion $450 billion;Year 1 $100 billion $400 billion;Year 1 $100 billion $450 billion;Year 1 $100 billion $450 billion;Year 6 $750 billion $550 billion;26. At the completion of year 1, the government operated with a;Question 26 options;budgetary surplus of $450 billion;budgetary deficit of $550 billion;a national debt of $550 billion;a national debt of $450 billion;two of the above are correct;Save;Question 27 (1 point) Question 27 Unsaved;At the completion of year 2, the government operated with a;Question 27 options;budgetary surplus of $350 billion.;budgetary deficit of $350 billion.;a national debt of $800 billion.;a national debt of $1 trillion.;two of the above are correct;Save;Question 28 (1 point) Question 28 Unsaved;When comparing the completed year 1 budget to the completed year 2 budget, which is true;Question 28 options;the government's debt increased by $150 billion;the government's deficit increased by $100 billion;the government experienced deficit reduction;the national debt did not grow;two of the above are correct;Save;Question 29 (1 point) Question 29 Unsaved;At the completion of year 3, which of the following would be a true statement;Question 29 options;the government's debt increased by $250 billion;the government's deficit decreased by $50 billion;the government experienced zero deficit growth;the national debt did not grow;two of the above are correct;Save;Question 30 (1 point) Question 30 Unsaved;At the completion of year 4, which of the following would be a true statement;Question 30 options;the government's deficit increased by $150 billion;the government's deficit decreased by $150 billion;the government's debt increased by $350 billion;the national debt did not grow;two of the above are correct;Save;Question 31 (1 point) Question 31 Unsaved;At the completion of year 5, which of the following would be a true statement;Question 31 options;the government's debt increased by $550 billion;the government's deficit decreased by $50 billion;the government experienced zero deficit growth;the national debt did not grow;two of the above are correct;Save;Question 32 (1 point) Question 32 Unsaved;Identify - after year 6 if the government redirects the budget surplus into "other" programs;Question 32 options;zero debt growth spending;zero deficit growth spending;operating a balanced budget;none of the above;Save;Question 33 (1 point) Question 33 Unsaved;After year 6 when using the true accounting approach, which of the following would be correct?;Question 33 options;the national debt is at $1.2 trillion;the national debt is at $250 billion;the national debt is at $1.6 trillion;the national debt is at $350 billion

 

Paper#79583 | Written in 18-Jul-2015

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