ECO 203 Week 3 Quiz | Assignment Help | Ashford University
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- 04 Mar 2020
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ECO 203 Week 3 Quiz | Assignment Help | Ashford University
Question 1
In the classical model,
shifts in the AD curve __________.
o
Change both the price level and output
o
Change output only
o
Change the price level only
o
Have no effect on the price level and
output
Question 2
Total planned spending
by all sectors is called __________.
o
Government purchases
o
Aggregate expenditure
o
Collective consumption
o
Disposable income
Question 3
Regarding aggregate
demand and aggregate supply, the Keynesian model assumes a(n) __________.
o
Upward-sloping AD curve and a vertical
AS curve
o
Downward-sloping AD curve and a vertical
AS curve
o
Upward-sloping AD curve and a horizontal
AS curve
o
Downward-sloping AD curve and a
horizontal AS curve
Question 4
About 31% of the
national debt owed to individuals is owed to __________.
o
Foreigners
o
Importers
o
Loan cooperatives
o
Venture capitalists
Question 5
Another term for credit
market is __________.
o
Market for loanable funds
o
Business market
o
Investment market
o
Market for interest loans
Question 6
What was Keynes’s main
argument against Say’s law?
o
It fails to explain short-run changes in
the velocity of money.
o
It ignores that long periods of
overproduction and unemployment are possible.
o
It neglects the role of interest rates.
o
It neglects the role of individual
investment.
If an economy has high
unemployment, slow growth, and low inflation rates, what would an appropriate
fiscal policy look like?
o
Lower taxes, higher government spending
o
Higher taxes, higher government spending
o
Higher taxes, lower government spending
o
Lower taxes, lower government spending
Question 8
With which group is a
laissez-faire attitude toward most markets closely associated?
o
Keynesians
o
Supply-side economists
o
Monetarists
o
Classical economists
Question 9
The consumption
function shows the relationship between the income received by households and
__________.
o
The amount they plan to spend on
currently produced final output
o
The amount they plan to save
o
The amount households and business firms
plan to spend on investment
o
The taxes paid on personal income
Question 10
Keynesians argue for
the use of fiscal policy because they believe that fiscal policy can
__________.
o
Stabilize foreign currency
o
Stabilize economic activity
o
Result in equilibrium, which means full
employment
o
Result in equilibrium, which means full
use of resources
USA 
India
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