Question 1

An example of a fiscal policy designed to increase real GDP is

Accepted Answer

A)  a cut in taxes. 
B)  an increase in taxes. 
C)  a decrease in government expenditure. 
D)  None of the above answers is correct. 
A)  a cut in taxes. 
B)  an increase in taxes. 
C)  a decrease in government expenditure. 
D)  None of the above answers is correct.

Question 2

If the Fed makes an unexpected open market ________ of government securities,the aggregate ________ curve shifts rightward and ________.

Accepted Answer

A)  sale; supply; the short-run Phillips curve shifts upward 
B)  purchase; demand; the short-run Phillips curve shifts downward 
C)  sale; demand; there is a movement along the short-run Phillips curve 
D)  purchase; demand; the long-run Phillips curve shifts rightward 
A)  sale; supply; the short-run Phillips curve shifts upward 
B)  purchase; demand; the short-run Phillips curve shifts downward 
C)  sale; demand; there is a movement along the short-run Phillips curve 
D)  purchase; demand; the long-run Phillips curve shifts rightward

Question 3

The Fed can change the federal funds rate

Accepted Answer

A)  lowering taxes. 
B)  increasing spending. 
C)  purchasing government securities. 
D)  increasing aggregate demand. 
A)  lowering taxes. 
B)  increasing spending. 
C)  purchasing government securities. 
D)  increasing aggregate demand.

Question 4

An example of a fiscal policy designed to decrease real GDP is

Accepted Answer

A)  a cut in taxes. 
B)  an increase in taxes. 
C)  an increase in government expenditure. 
D)  None of the above answers is correct. 
A)  a cut in taxes. 
B)  an increase in taxes. 
C)  an increase in government expenditure. 
D)  None of the above answers is correct.

Question 5

________ occurs when a foreign firm sells its exports at a lower price than its cost of production.

Accepted Answer

A)  A quota 
B)  Dumping 
C)  A tariff 
D)  A nontariff barrier 
A)  A quota 
B)  Dumping 
C)  A tariff 
D)  A nontariff barrier

An example of a fiscal policy designed to increase real GDP is

If the Fed makes an unexpected open market of government securities,the aggregate curve shifts rightward and .

The Fed can change the federal funds rate

An example of a fiscal policy designed to decrease real GDP is

________ occurs when a foreign firm sells its exports at a lower price than its cost of production.

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Filters

Exam 20: Macroeconomic Policy

An example of a fiscal policy designed to increase real GDP is

If the Fed makes an unexpected open market ________ of government securities,the aggregate ________ curve shifts rightward and ________.

The Fed can change the federal funds rate

An example of a fiscal policy designed to decrease real GDP is

________ occurs when a foreign firm sells its exports at a lower price than its cost of production.

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Monitoring Macroeconomic Performance

Macroeconomic Trends

Macroeconomic Fluctuations

Filters

If the Fed makes an unexpected open market of government securities,the aggregate curve shifts rightward and .