A) private saving. B) public saving. C) private saving plus public saving. D) private saving minus public saving. A) private saving. B) public saving. C) private saving plus public saving. D) private saving minus public saving.

Exhibit: Saving, Investment, and the Interest Rate 1 The economy begins in equilibrium at point E, representing the real interest rate r1 at which saving S1 equals desired investment I1. What will be the new equilibrium combination of real interest rate, saving, and investment if the government cuts taxes, holding other factors constant?

A) point A B) point B C) point C D) point D A) point A B) point B C) point C D) point D

Exam 3: National Income: Where It Comes From and Where It Goes

The production of an economy is explained by a function Y = 20 (L^.5K^.5), where L is labour and K is capital with L = 400 and K = 400. Does this economy support constant returns to scale?

(Essay)

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Question 121

The reduction in investment brought about by the increase in the interest rate caused by increased government spending is called:

(Multiple Choice)

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Question 122

Consumption depends _ on disposable income, and investment depends _ on the real interest rate.

(Multiple Choice)

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Question 123

Private investment goods as measured in GDP are purchased by:

(Multiple Choice)

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Question 124

In a neoclassical economy, assume that the government lowers both government spending and taxes by $100 billion. If the marginal propensity to consume is 0.6, investment will:

(Multiple Choice)

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Question 125

All of the following actions increase government purchases of goods and services except the:

(Multiple Choice)

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Question 126

According to the model developed in Chapter 3, when taxes decrease without a change in government spending:

(Multiple Choice)

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Question 127

National saving is:

(Multiple Choice)

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Question 128

According to Euler's theorem, if competitive firms pay each factor its marginal product and the production function has constant returns to scale, the sum of all factor payments will equal:

(Multiple Choice)

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Question 129

Disposable personal income is defined as income after the payment of all:

(Multiple Choice)

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Question 130

A competitive firm chooses the:

(Multiple Choice)

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Question 131

Assume that a competitive economy can be described by a constant returns to scale (Cobb-Douglas) production function and all factors of production are fully employed. Holding other factors constant, including the quantity of capital and technology, carefully explain how a one-time, 10-percent increase in the quantity of labour (perhaps as a result of a special immigration policy) will change each of the following: a.the level of output produced b.the real wage of labour c.the real rental price of capital d.labour's share of total income

(Essay)

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Question 132

The assumption that the factor's supply is fixed will imply that the factor's

(Multiple Choice)

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Question 133

If Y = AK^0.5L^0.5 and A, K, and L are all 100, the marginal product of capital is:

(Multiple Choice)

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Question 134

The real rental price of capital is the price per unit of capital measured in:

(Multiple Choice)

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Question 135

Assume that GDP (Y) is 5,000. Consumption (C) is given by the equation C = 1,000 + 0.3(Y - T). Investment (I) is given by the equation I = 1,500 - 50r, where r is the real interest rate, in percent. Taxes (T) are 1,000, and government spending (G) is 1,500. a.What are the equilibrium values of C, I, and r? b.What are the values of private saving, public saving, and national saving? c.Now assume there is a technological innovation that makes business want to invest more. It raises the investment equation to I = 2,000 - 50r. What are the new equilibrium values of C, I, and r? d.What are the new values of private saving, public saving, and national saving?

(Essay)

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Question 136

The government raises lump-sum taxes on income by $100 billion, and the neoclassical economy adjusts so that output does not change. If the marginal propensity to consume is 0.6, private saving:

(Multiple Choice)

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Question 137

The demand for the economy's output:

(Multiple Choice)

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Question 138

Exhibit: Saving, Investment, and the Interest Rate 1 The economy begins in equilibrium at point E, representing the real interest rate r₁ at which saving S₁ equals desired investment I₁. What will be the new equilibrium combination of real interest rate, saving, and investment if the government cuts taxes, holding other factors constant?

(Multiple Choice)

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Question 139

In a closed economy, the components of GDP are:

(Multiple Choice)

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Question 140

Showing 121 - 140 of 159

The production of an economy is explained by a function Y = 20 (L^.5K^.5), where L is labour and K is capital with L = 400 and K = 400. Does this economy support constant returns to scale?

The reduction in investment brought about by the increase in the interest rate caused by increased government spending is called:

Consumption depends _ on disposable income, and investment depends _ on the real interest rate.

Private investment goods as measured in GDP are purchased by:

In a neoclassical economy, assume that the government lowers both government spending and taxes by $100 billion. If the marginal propensity to consume is 0.6, investment will:

All of the following actions increase government purchases of goods and services except the:

According to the model developed in Chapter 3, when taxes decrease without a change in government spending:

National saving is:

According to Euler's theorem, if competitive firms pay each factor its marginal product and the production function has constant returns to scale, the sum of all factor payments will equal:

Disposable personal income is defined as income after the payment of all:

A competitive firm chooses the:

The assumption that the factor's supply is fixed will imply that the factor's

If Y = AK^0.5L^0.5 and A, K, and L are all 100, the marginal product of capital is:

The real rental price of capital is the price per unit of capital measured in:

The government raises lump-sum taxes on income by $100 billion, and the neoclassical economy adjusts so that output does not change. If the marginal propensity to consume is 0.6, private saving:

The demand for the economy's output:

In a closed economy, the components of GDP are:

The Science of Macroeconomics

The Data of Microeconomics

The Monetary System: What It Is and How It Works

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Unemployment and the Labour Market

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Islm Model

Aggregate Demand Ii: Applying the Islm Model

The Open Economy Revisited: the Mundellfleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

The Microfoundations of Consumption and Investment

Filters

Exam 3: National Income: Where It Comes From and Where It Goes

The production of an economy is explained by a function Y = 20 (L.5K.5), where L is labour and K is capital with L = 400 and K = 400. Does this economy support constant returns to scale?

The reduction in investment brought about by the increase in the interest rate caused by increased government spending is called:

Consumption depends _____ on disposable income, and investment depends _____ on the real interest rate.

Private investment goods as measured in GDP are purchased by:

In a neoclassical economy, assume that the government lowers both government spending and taxes by $100 billion. If the marginal propensity to consume is 0.6, investment will:

All of the following actions increase government purchases of goods and services except the:

According to the model developed in Chapter 3, when taxes decrease without a change in government spending:

National saving is:

According to Euler's theorem, if competitive firms pay each factor its marginal product and the production function has constant returns to scale, the sum of all factor payments will equal:

Disposable personal income is defined as income after the payment of all:

A competitive firm chooses the:

The assumption that the factor's supply is fixed will imply that the factor's

If Y = AK0.5L0.5 and A, K, and L are all 100, the marginal product of capital is:

The real rental price of capital is the price per unit of capital measured in:

The government raises lump-sum taxes on income by $100 billion, and the neoclassical economy adjusts so that output does not change. If the marginal propensity to consume is 0.6, private saving:

The demand for the economy's output:

In a closed economy, the components of GDP are:

The Science of Macroeconomics

The Data of Microeconomics

The Monetary System: What It Is and How It Works

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Unemployment and the Labour Market

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Islm Model

Aggregate Demand Ii: Applying the Islm Model

The Open Economy Revisited: the Mundellfleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

The Microfoundations of Consumption and Investment

Filters

The production of an economy is explained by a function Y = 20 (L^.5K^.5), where L is labour and K is capital with L = 400 and K = 400. Does this economy support constant returns to scale?

Consumption depends _ on disposable income, and investment depends _ on the real interest rate.

If Y = AK^0.5L^0.5 and A, K, and L are all 100, the marginal product of capital is: