Macro

Front 1

Which of the following relies on government taxes and spending to change, macro outcomes?

Back 1

Fiscal Policy

Front 2

The total quantity of output demanded at alternative price levels refers to:

Back 2

Aggregate Demand

Front 3

Inflation occurs when:

Back 3

Aggregrate demand increases faster than output

Front 4

The four components of aggregate demand are:

Back 4

consumption, investment, government spending, and net exports

Front 5

Which of the following is the largest component of aggregate demand for the US economy?

Back 5

Consumption

Front 6

Which of the following is not a component of aggregate demand?

Back 6

Income transfers

Front 7

Expediture by households on final goods and services is referred to as:

Back 7

Consumption

Front 8

Expeditures on new plant and equipment plus changes in business inventories is known as:

Back 8

Investment

Front 9

Which of the following is not an example of investment spending?

Back 9

The purchase of stock in the stock market.

Front 10

All of the following represent spending as a part of aggregate demand except for:

Back 10

Social Security checks

Front 11

When calculating aggregate demand, government expeditures:

Back 11

Includes spending by federal, state, and local governments on goods and services

Front 12

Exports minus imports are refered to as:

Back 12

net exports

Front 13

Net exports for the US are:

Back 13

Negative if Americans export less goods than they import

Front 14

The combination of price level and real output that is compatible with both aggregate demand and aggregate supply is known as:

Back 14

Equilibrium

Front 15

Keynes believed that:

Back 15

Fiscal policy could be used to attain the correct level of aggregate demand

Front 16

The differencee between full-eemployment output andj amount of output demanded at the current price level is the :

Back 16

GDP Gap

Front 17

Which of the following provides fiscal stimulus to the economy?

Back 17

Increased government purchases

Front 18

Saving:

Back 18

Is the part of income that is not spent

Front 19

The fraction of each additional 1 dollar of disposable income not spent on comsumption is referred to as:

Back 19

The MPS

Front 20

The marginal propensity to comsume is:

Back 20

The fraction of each additional dollar of disposable income spent on consumption

Front 21

The after-tax income of consumersis defined as:

Back 21

Disposable income

Front 22

The use of tax hikes and government spending cuts to reduce aggregate demand is known as:

Back 22

fiscal restraint

Front 23

The budget deficit is incurred whenever:

Back 23

Discretionary fiscal spending is used to achieve macro equilibrium

Front 24

The budget deficit occurs if government spending:

Back 24

is greater than tax revenues

Front 25

A budget surplus occurs if government spending:

Back 25

Is less than tax revenues

Front 26

A tax cut causes a decrease in disposable income.

Back 26

FALSE