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Sheet1 Page 1 Your location: Assessments View All Submissions View Attempt View Attempt 1 of 3 Title: Lesson 8 Quiz (Required for course grade) Started: December 11, 2008 2:16 AM Submitted: December 11, 2008 2:36 AM Time spent: 00:19:44 Total score: 100/100 = 100% Total score adjusted by 0.0 Maximum possible score: 100 Done The Laffer Curve is a central concept in: Student Response Value Correct Answer A. monetarism. Feedback B. Keynesianism. C. welfare economics. D. supply-side economics. 100% Score: 10/10 Comments: Supply-side economists argue that tax cuts will: Student Response A. increase saving and investment. Value Correct Answer Feedback B. increase incentives to work. C. enhance entrepreneurial risk-taking. D. do all of the above. 100% Score: 10/10 Comments: Supply-side economists argue that tax rate cuts will: Student Value Correct Feedback Response Answer A. always reduce tax revenues. B. may 100% increase tax revenues. C. always increase budget deficits. D. have no effect on tax revenues. Score: 10/10 Comments: If there is full employment, and a decline in aggregate demand occurs: Student Value Correct Feedback Response Answer A. Keynesian analysis would predict a decline in prices and
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Sheet1 Page 2 wages. B. Keynesian 100% analysis would predict a decline in real output and employment. C. Classical analysis would predict a decline in real output and employment. D. Classical analysis would predict declines in both real GDP and the price level. Score: 10/10 Comments: The classical aggregate supply curve suggests that: Student Value Correct Feedback Response Answer A. real output is unrelated to the price level. 100% B. businesses must receive higher prices to produce more output. C. real output can be increased without affecting the price level. D. idle capital goods and unemployed workers are available in the economy. Score: 10/10 Comments: Economist Milton Friedman is most closely associated with: Student Response Value Correct Answer A. Keynesian economics. Feedback B. the rational expectations theory. C. supply-side economics. D. monetarism. 100% Score: 10/10 Comments: The basic equation of monetarism is: Student Response Value Correct Answer A. MV = PQ. 100% Feedback B. Sa + T + M = I g + G + Xn C. V = M/PQ. D. Ca + Ig + Xn + G = GDP. Score: 10/10 Comments: Answer the next question(s) on the basis of the following information for a hypothetical economy. All values are in nominal ter M = $100 V =2 Ca = $160 Xn = $10 G = $10 Refer to the above information. If the price level P is 4, Q is: Student Response A. 50. Value Correct Answer 100% Feedback B. 100. C. 200. D. 500. Score: 10/10
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Sheet1 Page 3 Comments: To determine the velocity of money you would need to know: Student Response A. nominal GDP and real GDP. Value Correct Answer Feedback B. the money supply and the price level. C. nominal GDP and the money supply. 100% D. nominal GDP and the interest rate.
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