When the price level decreases, which of the following is a response would
occur to help explain the positive slope of the aggregate supply curve?
The owners of the Orange King, a restaurant, bought new tables when
interest rates fell.
Janet buys more artwork when prices fall, because the money she was
holding is now worth more.
Samuel hires fewer workers because the price of his output falls, but his
workers’ wages are fixed by contract.
The exchange rate falls so French restaurants in Paris buy more delicious
pork chops from Iowa.
If aggregate output is below the natural rate level, advocates of discretionary
policy would recommend that the government,
Do nothing.
Try to eliminate the high unemployment by attempting to increase the
aggregate supply.
Try to eliminate the high unemployment by attempting to increase the
aggregate demand.
Try to eliminate the high unemployment by attempting to decrease the
aggregate demand.
As the interest sensitivity of investment spending increases,
monetary policy has a larger effect on output.
fiscal policy has a larger effect on output.
the multiplier increases.
all of the above.
both (A) and (B) of the above.
Which of the following would cause the inflation rate to rise and
unemployment to fall in the short run?
The central bank sells bonds in the market.
The central bank buys bonds in the market.
The price of oil increases.
The price of oil decreases.
Both (B) and (D) are correct.
According to the principle of monetary neutrality, which of these variables will
increase when the money supply increases?
The wage you get each hour on your pay check.
The price of oranges relative to the price of gasoline.
The dollar price of oranges.
The amount of goods you can purchase with the wage you get each hour.
Both (A) and (C) are correct.
If government purchases increase by 100, and the purchases are financed by an
increase in autonomous net taxes of 100, and the marginal propensity to
consume is 0.5, then in the simple Keynesian model
Aggregate output will increase by 200.
Aggregate output will increase by 100.
Aggregate output will decrease by 100.
Aggregate output will not change.
The effect on aggregate output cannot be determined without further
information.
According to aggregate demand and supply analysis, the negative supply
shocks of 1973-1975 and 1978-1980 had the effect of
Increasing aggregate output, lowering unemployment, and raising the price
level.
Decreasing aggregate output, raising unemployment, and raising the price
level.
Increasing aggregate output, raising unemployment, and raising the price
level.
Decreasing aggregate output, raising unemployment, and lowering the price
level.
Increasing aggregate output, lowering unemployment, and lowering the
price level.
Who would be included in the labor force?
Mary, an unpaid homemaker.
Peter, a full-time student who is not looking for a job.
John, does not have a job, but is looking for work.
None of the above are included in the labor force.
The local Chevrolet dealership has an increase in inventory of 25 cars in 2003.
In 2004, it sells all 25 cars.
The value of increased inventory will be counted as part of GDP in 2003,
but the value of the cars sold in 2004 will not cause GDP to increase.
The value of the increased inventory will not affect 2003 GDP, but will be
included in 2004 GDP.
The value of the increased inventory will be counted as 2003 GDP and the
value of the cars sold in 2004 will increase 2004 GDP.
None of the above are correct.
Monetarists contend that
Wages are sufficiently flexible so that the wage and price adjustment
process is reasonably rapid.
The aggregate supply curve does not move quickly to restore the economy
to the natural rate of unemployment.
Active government policy is required to restore the economy to full
employment when unemployment is high.
None of the above are correct.
Oscar deposited $500 into an account two years ago. The first year he earned
10% interest and the second year he earned 5% interest. How much money
does Oscar have in his account now?
$577.5.
$580.
$575.
None of the above are correct.
Using the one-period valuation model, assuming a year-end dividend of $11.00,
an expected sale price of $110, and a required rate of return of 10%, the current
price of the stock would be
$121.
$110.
$99.
$91.
Holding other factors constant, which of the following would increase the size
of the U.S. current account deficit?
A decline in American’s net investment income.
An increase in the amount of services purchased from foreigners.
An increase in unilateral transfers from Americans to foreigners.
All of the above.
Important implications of the efficient markets hypothesis include:
Future changes in stock prices should, for all practical purposes, be
unpredictable.
Stock prices will respond to announcements only when the information in
these announcements is new.
Sometimes a stock price declines when good news is announced.
All of the above.
Only (A) and (B) of the above.
Other things the same, as the maturity of a bond becomes longer, the bond will pay
Less interest because it has less risk.
Less interest because it has more risk.
More interest because it has more risk.
There is no relation between term to maturity and risk.
An unsterilized intervention in which domestic currency is sold to purchase
foreign assets leads to
a gain in international reserves.
a decrease in the money supply.
a depreciation in the domestic currency.
only (A) and (B) of the above.
only (A) and (C) of the above.
According to the Big Mac index reported by the Economists in July 2010, the
price of the big Mac is US$3.73 in the US and C$4.17 in Canada. If the law of
one price holds, the exchange rate of the Canadian dollar in terms of the US
dollars should be
0.89.
0.95.
1.02.
1.8.
According to the uncovered interest parity condition, if the domestic interest
rate is 12 percent and the foreign interest rate is 10 percent, then
the expected appreciation of the foreign currency must be 4 percent.
the expected appreciation of the foreign currency must be 2 percent.
the expected depreciation of the foreign currency must be 2 percent.
the expected depreciation of the foreign currency must be 4 percent.
Reduce, reduce, decrease, decrease.
Raise, raise, increase, decrease.
Raise, reduce, decrease, increase.
Reduce, raise, increase, increase.
Which investment bank filed for bankruptcy on September 15, 2008 making it
the largest bankruptcy filing in the US history?
Lehman Brothers.
Merrill Lynch.
Bear Stearns.
Goldman Sachs.
Which of the following statement is correct according to the convergence
hypothesis?
Poorer and less developed countries have higher capital/labor ratios than
richer countries.
Poorer and less developed countries have higher output/labor ratios than
richer countries.
Poorer and less developed countries will catch up with richer ones in terms
of capital/labor ratios.
Poorer and less developed countries will catch up with richer ones in terms
of saving rate.
According to the Solow growth model, which of the following items is not a
cause of economic growth in the long run?
An increase in the money supply.
An increase in the labor productivity.
An increase in the technology.
An increase in the quality of capital and labor.
According to the Solow growth model, an economy will transition to a steady
state at a higher level of output per capita if there is an increase in
the rate of capital depreciation.
the rate of population growth.
the marginal propensity to consume.
the saving rate.
The golden-rule saving rate is the saving rate that
maximizes the level of long-run consumption per capita.
maximizes the level of long-run investment per capita.
maximizes the level of the capital/labor ratio.
maximizes the level of the labor quality.
Which of the following statement is true for the Solow growth model without
technological progress? The growth rate of output per capita is equal to zero in
the long run because
the rate of population growth is constant over time.
the saving rate is constant over time.
the production function exhibits constant returns to scale in capital and
labor.
the capital depreciation rate is constant over time.
The growth rate of output per capita in the long run is endogenous in
economy A and exogenous in economy B.
The growth rate of output per capita in the long run is endogenous in
economy B and exogenous in economy A.
The growth rate of output per capita in the long run is exogenous in both
economies.
The growth rate of output per capita in the long run is endogenous in both
economies.
The growth rate of output per capita in the long run is exogenous in
economy B and endogenous in economy C.
The growth rate of output per capita in the long run is exogenous in
economy C and endogenous in economy B.
The growth rate of output per capita in the long run is exogenous in both
economies.
The growth rate of output per capita in the long run is endogenous in both
economies.
Which of the following statement related to GDP and GNP is always correct?
For any given year,
GDP is less than GNP.
nominal GDP is greater than real GDP.
nominal GNP is greater than real GNP.
GDP deflator is greater than 100 if nominal GDP is greater than real GDP.
Country A is a small open economy with trade surplus. Which of the following
is NOT true for country A?
Saving is greater than Investment.
Net capital outflow is less than 0.
Export is greater than import.
Which of the following statement is correct? Other things being equal, Fisher
equation says that
an increase in the inflation rate leads to an increase in the nominal interest
rate.
an increase in the output level leads to an increase in the price level.
an increase in the velocity of money leads to an increase in the price level.
an increase in the inflation rate leads to a decrease in the unemployment
rate.
According to the quantity theory of money, which of the following statement is
correct? Other thing being equal,
an increase in the inflation rate leads to an increase in the nominal interest
rate.
an increase in the output level leads to an increase in the price level.
an increase in the velocity of money leads to an increase in the price level.
an increase in the inflation rate leads to a decrease in the unemployment
rate.
Other things being equal, if the actual inflation rate is less than the expected
one, then which of the following statement is correct?
The unemployment rate is greater than the natural rate of unemployment.
Borrowers will gain in expense of lenders.
Wealth will be transferred from the rich to the poor.
None of the above statement is correct.
Which of following statement related to consumption theories is correct?
Keynes conjectured that consumption depends on both income and wealth.
Modigliani’s Leif-cycle hypothesis emphasizes that consumption depends
only on income.
Friedman’s hypothesis claimed that consumption depends only on
permanent income.
None of the above statement is correct.
Suppose that the reserve-deposit ratio in country A is 0.1 and the
currency-deposit ratio is 0.8. Based on these figures, the money multiplier of
country A is equal to
0.9
1.0
2.0
none of above.
Other things being equal, an increase in the bank’s excess reserves will
decrease the money supply.
increase the money supply.
have no effect on money supply.
Other things being equal, which of the following statement is correct?
The unemployment rate decreases if the population of discouraged workers
increases.
The labor-force participation rate increases if the population of discouraged
workers increases.
The labor force increases if the population of discouraged workers
increases.
None of the above statement is correct.
可觀看題目詳解,並提供模擬測驗!(免費會員無法觀看研究所試題解答)