ECON 2301 Week 10 Quiz | Assignment Help | Central Texas College
- Central Texas College / ECON 2301
- 30 Apr 2021
- Price: $5
- Accounting & Economics Assignment Help / Microeconomics
ECON 2301 Week 10 Quiz | Assignment Help | Central Texas College
Review Test Submission: Quiz 10
• Question 1
According to the classical model, which of the following would double if the quantity of money doubled?
Answers: a.
prices but not nominal income
b.
nominal income but not prices
c.
both prices and nominal income
d.
neither prices nor nominal income
• Question 2
Aggregate demand shifts right when the Federal Reserve
a.
raises personal income taxes.
b.
increases the money supply.
c.
institutes an investment tax credit.
d.
All of the above are correct.
• Question 3
Which of the following is correct?
Answers: a.
During economic contractions most firms experience rising profits.
b.
When real GDP falls, the rate of unemployment generally rises.
c.
Short run fluctuations in economic activity happen only in developing countries.
d.
Recessions come at irregular intervals and are easy to predict.
• Question 4
An increase in household saving causes consumption to
a.
rise and aggregate demand to increase.
b.
fall and aggregate demand to increase.
c.
rise and aggregate demand to decrease.
d.
fall and aggregate demand to decrease.
• Question 5
Which of the following fall during a recession?
Answers: a.
both retail sales and employment
b.
retail sales but not employment
c.
employment but not retail sales
d.
neither employment nor retail sales
• Question 6
A decrease in government spending initially and primarily shifts
Answers: a.
aggregate demand to the right.
b.
aggregate supply to the right.
c.
aggregate demand to the left.
d.
neither aggregate demand nor aggregate supply.
• Question 7
Using the liquidity-preference model, when the Federal Reserve increases the money supply,
Answers: a.
the aggregate-demand curve shifts to the left.
b.
the short-run aggregate-supply curve shifts to the right.
c.
the equilibrium interest rate decreases.
d.
the quantity of goods and services demanded is unchanged for a given price level.
• Question 8
An example of an automatic stabilizer is
Answers: a.
unemployment benefits.
b.
a lowering of interest rates by the Fed.
c.
a decrease in tax rates in response to a recession.
d.
a decrease in money demand.
• Question 9
A goal of monetary policy and fiscal policy is to
Answers: a.
enhance the shifts in aggregate demand and thereby increase economic growth
b.
offset shifts in aggregate demand and thereby stabilize the economy.
c.
enhance the shifts in aggregate demand and thereby create fluctuations in output and employment.
d.
offset the shifts in aggregate demand and thereby eliminate unemployment.
Question 10
Refer to Figure 34-1. At an interest rate of 4 percent, there is an excess
Answers: a.
demand for money equal to the distance between points b and c.
b.
supply of money equal to the distance between points b and c.
c.
supply of money equal to the distance between points a and b.
d.
demand for money equal to the distance between points a and b.
USA 
India