QuestionQuestion post eco201 final exam

04 Jun QuestionQuestion post eco201 final exam

QuestionQuestion
post eco201 final exam

post eco201 final exam
post eco201 final exam

post eco201 final exam
• Question 1

2 out of 2 points

According to Friedman and Phelps it is appropriate to view the Phillips curve as a menu of options available to policymakers.

Answers: True

False

• Question 2

2 out of 2 points

As the price level rises, the value of money rises.

Answers: True

False

• Question 3

2 out of 2 points

Other things the same, an increase in the money supply cause the interest rate to rise to balance money supply and money demand.

Answers: True

False

• Question 4

2 out of 2 points

A U.S. retail store uses dollars to purchase Yuan (Chinese currency) it then uses all of these Yuan to buy toys from a Chinese firm. Overall these transactions have

Answers: increased U.S. net exports and decreased U.S. net capital outflow.

decreased U.S. net exports and increased U.S. net capital outflow.

increased U.S. net exports and increased U.S. net capital outflow.

decreased U.S. net exports and decreased U.S. net capital outflow.

• Question 5

2 out of 2 points

During recessions

Answers: unemployment falls and a decline in consumption accounts for the majority of the decline in output.

unemployment rises and a decline in consumption accounts for the majority of the decline in output.

unemployment rises and a decline in investment accounts for the majority of the decline in output.

unemployment falls and a decline in investment accounts for the majority of the decline in output.

• Question 6

2 out of 2 points

An open economy can only finance its investment purchases with domestic saving.

Answers: True

False

• Question 7

2 out of 2 points

If aggregate demand shifts right farther than expected, then

Answers: inflation is lower than expected and unemployment rises.

inflation is higher than expected and unemployment falls.

inflation is lower than expected and unemployment falls.

inflation is higher than expected and unemployment rises.

• Question 8

2 out of 2 points

Suppose the price of the product you sell stays the same, but the prices of other goods and services rise, this means that the

Answers: nominal value of your product rose.

nominal value of your product fell.

real value of your product fell.

real value of your product rose.

• Question 9

2 out of 2 points

Classical theory points to money supply growth as the primary determinant of

Answers: both unemployment and inflation.

neither inflation nor unemployment.

unemployment but not inflation.

inflation but not unemployment.

• Question 10

2 out of 2 points

If consumers and businesses became more pessimistic about the future of the economy, the government could try to stabilize output by

Answers: decreasing government expenditures. The primary objection to this is that an increase in government expenditures has no impact on the economy.

decreasing government expenditures. The primary objection to this is that there are lags in implementing fiscal policy.

increasing government expenditures. The primary objection to this is that an increase in government expenditures has no impact on the economy.

increasing government expenditures. The primary objection to this is that there are lags in implementing fiscal policy.

• Question 11

2 out of 2 points

National saving is the source of the supply of loanable funds in the open-economy macroeconomic model.

Answers: True

False

• Question 12

2 out of 2 points

When the Fed announces a target for the federal funds rate it essentially accommodates the day-to-day shifts in money demand by adjusting the money supply accordingly.

Answers: True

False