Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
55 Cards in this Set
- Front
- Back
|
Economies with highter growth rates tend to be those that?
|
increase their human capital
|
|
|
Which of the following is NOT one of the reasons that the aggregate demand curve slopes downward?
|
the substituion effect
|
|
|
A revaluation makes?
|
domestic goods more expensive relative to foreign goods
|
|
|
Deviations in the actual rate of unemployment away from the natural rate of unemployment are called?
|
cyclical unemployment
|
|
|
Nearly all economists agree that expansionary fiscal policy can _____ aggregate ______?
|
increase; demand
|
|
|
The short-run alternation between economic downturns, recessions, and economic upturns and expansions are know as the?
|
business cycle
|
|
|
An example of a government tranfers is a(n)
|
Social Security payment
|
|
|
Which of the following represents the consensus among most economists today with respect to the management of unemployment?
|
Unemployment cannot be kept below the natural rate
|
|
|
In the long run, any given percentage increase in the money supply?
|
Leads to an equal percentage increase in the overall price level
|
|
|
If the MPC is greater than zero but less than one, then we can be sure that when disposable income rises by $1 consumption will?
|
Rise by less than $1
|
|
|
When the output gap is negative the acutal unemployment rate is?
|
above the natural rate
|
|
|
An example of human capital would be?
|
the job skills a person has
|
|
|
Public debt is
|
Government debt held by individuals and institutions outside the government
|
|
|
According to the accompanying figure, the equilibrium interest rate is
|
6%
|
|
|
The marginal propensity to consume is
|
0.8
|
|
|
Autonomous consumption is
|
$500
|
|
|
A loan is
|
A liability for the borrower and an asset for the lender
|
|
|
Shoe leather costs refer to the
|
increased cost of transactions due to inflation
|
|
|
A binding minimum wage
|
increases unemployment
|
|
|
The natural rate of unemployment is 4% and the economy is producing 95% of its potential output. Okun's law predicts an unemployment rate of
|
6.5%
|
|
|
The short-run Phillips curve shows
|
An inverse relationship between unemployment and inflation
|
|
|
According to rational expectations, monetary policy is
|
effective only if it is unexpected
|
|
|
A laptap computer purchased by an accounting firm is considered to be
|
investment spending
|
|
|
Fiat money is
|
None of the above
|
|
|
The quantity equation is
|
MV=PY
|
|
|
The classical model of the price level is much more likely to be a good approximation of reality during periods of
|
Expansion
|
|
|
In the long run, changes in the money supply
|
affect only the price level but they do not change aggregate output
|
|
|
Economists view investment spending as which of the following
|
spending on physical capital
|
|
|
Which of the following would NOT be a method by which a country could maintain a fixed exchange rate
|
Passing a law requiring that the exchange rate remain fixed
|
|
|
A minimum wage of $5.15 per hour might cause structural unemployment if the equilibrium wage in that labor market is
|
$4.00
|
|
|
Autonomous consumption is
|
$500
|
|
|
A loan is
|
A liability for the borrower and an asset for the lender
|
|
|
Shoe leather costs refer to the
|
increased cost of transactions due to inflation
|
|
|
A binding minimum wage
|
increases unemployment
|
|
|
The natural rate of unemployment is 4% and the economy is producing 95% of its potential output. Okun's law predicts an unemployment rate of
|
6.5%
|
|
|
The short-run Phillips curve shows
|
An inverse relationship between unemployment and inflation
|
|
|
According to rational expectations, monetary policy is
|
effective only if it is unexpected
|
|
|
A laptap computer purchased by an accounting firm is considered to be
|
investment spending
|
|
|
Fiat money is
|
None of the above
|
|
|
The quantity equation is
|
MV=PY
|
|
|
The classical model of the price level is much more likely to be a good approximation of reality during periods of
|
Expansion
|
|
|
In the long run, changes in the money supply
|
affect only the price level but they do not change aggregate output
|
|
|
Economists view investment spending as which of the following
|
spending on physical capital
|
|
|
Which of the following would NOT be a method by which a country could maintain a fixed exchange rate
|
Passing a law requiring that the exchange rate remain fixed
|
|
|
A minimum wage of $5.15 per hour might cause structural unemployment if the equilibrium wage in that labor market is
|
$4.00
|
|
|
The monetary policy rule suggests
|
the money supply need to grow at a slow and steady pace
|
|
|
If expected inflation decreases, the demand and supply of loanable funds
|
shifts up and the nominal interest rate increases
|
|
|
Reserve requirements
|
set the minimum amount of reserves a bank must hold
|
|
|
the advantage of a fixed exchange rate is that
|
it eliminates uncertainty about the value of a currency
|
|
|
Purchasing power parity refers to
|
the nominal exchange ate for which a market basket would cost the same in each country
|
|
|
Which of the following would be an example of an intermediate good
|
motor oil purchased by a taxi driver for his cab
|
|
|
the long-run aggregate suply curve is
|
vertical
|
|
|
According to recent estimates in Okun's law, if the unemployment rate fell by a full percentage this is most probably attributable to a
|
2% percent increase in real GDP
|
|
|
The unemployment rate is
|
6.25%
|
|
|
Which of the following would be the BEST explanation for an upward-sloping short-run aggregate supply curve?
|
Wages and prices of some goods are sticky in the short run
|
