Chat with AIExam 16: The Influence of Monetary and Fiscal Policy on Aggregate Demand
Exam 1: Ten Principles of Economics347 Questions
Exam 2: Thinking Like an Economist528 Questions
Exam 3: Interdependence and the Gains From Trade413 Questions
Exam 4: The Market Forces of Supply and Demand568 Questions
Exam 5: Measuring a Nations Income428 Questions
Exam 6: Measuring the Cost of Living420 Questions
Exam 7: Production and Growth417 Questions
Exam 8: Saving, Investment, and the Financial System473 Questions
Exam 9: The Basic Tools of Finance419 Questions
Exam 10: Unemployment562 Questions
Exam 11: The Monetary System421 Questions
Exam 12: Money Growth and Inflation384 Questions
Exam 13: Open-Economy Macroeconomic Models447 Questions
Exam 14: A Macroeconomic Theory of the Open Economy375 Questions
Exam 15: Aggregate Demand and Aggregate Supply466 Questions
Exam 16: The Influence of Monetary and Fiscal Policy on Aggregate Demand416 Questions
Exam 17: The Short-Run Trade-Off Between Inflation and Unemployment367 Questions
Exam 18: Six Debates Over Macroeconomic Policy235 Questions
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Scenario 16-1. Take the following information as given for a small, imaginary economy:
-Refer to Scenario 16-1. For this economy, an initial increase of $500 in net exports translates into a
-Refer to Scenario 16-1. For this economy, an initial increase of $500 in net exports translates into a (Multiple Choice)
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(34) Other things the same, which of the following happens if the price level falls?
(Multiple Choice)
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(39) A significant example of a temporary tax cut was the one announced in 1992 by President George H. W. Bush. The effect of that tax cut on consumer spending and aggregate demand was
(Multiple Choice)
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(27) There are three factors that help explain the slope of the aggregate demand curve. Which two are less important? Why are they less important?
(Essay)
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(33) Figure 16-5. On the figure, MS represents money supply and MD represents money demand.
-Refer to Figure 16-5. What is measured along the vertical axis of the graph?
-Refer to Figure 16-5. What is measured along the vertical axis of the graph? (Multiple Choice)
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(33) According to the theory of liquidity preference, if the interest rate rises
(Multiple Choice)
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(32) If the Fed conducts open-market purchases, then which of the following quantities increase(s)?
(Multiple Choice)
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(35) In 2009 President Obama and Congress increased government spending. Some economists thought this increase would have little effect on output. Which of the following would make the effect of an increase in government expenditures on aggregate demand smaller?
(Multiple Choice)
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(32) An increase in the price level shifts the money demand curve to the left, causing interest rates to increase.
(True/False)
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(45) Figure 16-2. On the left-hand graph, MS represents the supply of money and MD represents the demand for money; on the right-hand graph, AD represents aggregate demand. The usual quantities are measured along the axes of both graphs.
-Refer to Figure 16-2. Assume the money market is always in equilibrium, and suppose r1 = 0.08; r2 = 0.12; Y1 = 13,000; Y2 = 10,000; P1 = 1.0; and P2 = 1.2. Which of the following statements is correct? When P = P2,
-Refer to Figure 16-2. Assume the money market is always in equilibrium, and suppose r1 = 0.08; r2 = 0.12; Y1 = 13,000; Y2 = 10,000; P1 = 1.0; and P2 = 1.2. Which of the following statements is correct? When P = P2, (Multiple Choice)
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(38) Supply-side economists believe that changes in government purchases affect
(Multiple Choice)
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(49) An increase in the money supply decreases the equilibrium interest rate and shifts the aggregate-demand curve to the right.
(True/False)
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(37) An increase in government spending initially and primarily shifts
(Multiple Choice)
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