final fall04 answer

final fall04 answer - SECTION_ ECON 162B-90,91 Fall 2004...

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SECTION______ NAME______________________________ ECON 162B-90,91 Kenny Christianson Fall 2004 December 15, 2004 FINAL EXAMINATION (A) PART I MULTIPLE CHOICE (30 points) Choose the single best answer. 1. Which of the following will lead to an increase in aggregate demand in the neo- Keynesian model? a. a decrease in consumption spending. b. an increase in income taxes. c. an increase in interest rates. d. a decrease in the money supply. e. a decrease in the value of the dollar. 2. Which of the following is not a determinant of aggregate supply? a. resource prices b. technology c. business expectations. d. consumer confidence. e. business taxes and regulations. 3. Why is the aggregate demand curve downward-sloping? a. An increase in the price level increases consumption spending. b. An increase in the price level increases investment spending. c. An increase in the price level increases net export spending. d. all of the above. e. none of the above. 4. A progressive income tax system a. can act as an automatic stabilizer for the economy. b. means that average tax rates increase as income increases. c. will tend to reduce consumption spending in the economy compared to a regressive tax system that raises the same amount of revenue. d. all of the above. e. both a) and b). 5. Assume a simple fixed-price Keynesian model where the MPC is 0.8. Which of the following will lead to the largest increase in equilibrium GDP? a. A tax cut of $100. b. A tax increase of $125. c. An increase in government spending of $100. d. An increase in government spending of $80. e. A decrease in government spending of $100
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Econ 162B Fall 2004 Final Examination 2A 6. An inflationary gap occurs when a. equilibrium GDP is above full employment GDP. b. equilibrium GDP is below full employment GDP. c. equilibrium GDP occurs at full employment. d. actual inflation is less than expected inflation. e. actual inflation is greater than expected inflation. 7. The first known coins in the Western world a. were minted by Queen Elizabeth in the 1600s. b. were created by Lydia in the 600s B.C. c. were created by the Greek city-states in the 400s B.C. d. were minted by the Roman empire under Augustus Caesar. e. were minted by the United States Mint in 1791. 8. Suppose that your grandmother sends you a birthday check for $50 (drawn on a U.S. bank) and you deposit the check into your savings account in Binghamton.
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This note was uploaded on 08/10/2008 for the course ECON 162 taught by Professor Christianson during the Fall '05 term at Binghamton.

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final fall04 answer - SECTION_ ECON 162B-90,91 Fall 2004...

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