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Econ 201 Exam 3 - ECON201-EXAM3-CHAPTERS9-11(SAMPLE Student...

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ECON201-EXAM3-CHAPTERS9-11(SAMPLE) Student:_______________________________________________________________________________________ Thissampleexamcontains100questions. Theactualexamwillcontain50ofthese100questions. 1. Ifa$20billionincreaseingovernmentexpendituresincreasesequilibriumGDPby$50billionthen: A. themultiplieris2. B. theMPCforthiseconomyis.6. C. inflationisoccurring. D. theMPSforthiseconomyis.6. 2. Ifanunintendedincreaseinbusinessinventoriesoccursat somelevelofGDP,thenGDP: 3. Ifthemarginalpropensitytosaveinaclosedeconomyis0.25andalump- sumtaxisimposed,theslopeofthe economy'saggregateexpendituresschedulewillbe: 4. WhichofthefollowingwouldreduceGDPbythegreatestamount? 5. Refertotheabovediagrams.CurveA: A. isaninvestmentscheduleandcurveBisaconsumptionoffixedcapitalschedule. B. isaninvestmentdemandcurveandcurveBisaninvestmentschedule. C. andBaretotallyunrelated. D. shiftstotheleftwhencurveBshiftsupward. 6. Refertotheabovediagram.Themultiplierinthiseconomyis: 7. Refertotheabovediagram.ThelocationofcurveBdependsonthe: 8. Itistruethat:
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9. Refertotheabovediagramforaprivateclosedeconomy.Inthiseconomyaggregateexpenditures: A. donotchangeasGDPincreases. B. increaseby$2forevery$5increaseinGDP. C. increaseby$2forevery$4increaseinGDP. D. increaseby$2forevery$3increaseinGDP. 10. Foraprivateclosedeconomyaggregateexpendituresconsist of: 11. Refertotheabovetable.EquilibriumGDPis: 12. Refertotheabovediagram.Thesizesofthemultipliersassociatedwithchangesininvestmentandgovern ment spendinginthiseconomyare:
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