quiz 9ma - b. Inventories fall unexpectedly c. The price...

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Quiz 9 Chapter 25 1. Investment is typically a. Larger than consumption b. More variable than consumption c. Positively related to the corporate tax rate d. Positively related to the interest rate 2. The net export of the U.S. tend to rise when: a. U.S. inflation exceeds foreign inflation b. Foreign countries increase tariff rates c. The value of the U.S. dollar, relative to foreign currencies, rises d. Foreign incomes rise faster than U.S. incomes 3. The GDP is in equilibrium on the demand side when: a. Total spending equals domestic product b. Consumer spending equals domestic product c. Total spending equals spending on consumption, investment, net exports and government goods and services d. Government spending equals net taxes 4. GDP levels below equilibrium are bound to rise because: a. Output exceeds spending
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Unformatted text preview: b. Inventories fall unexpectedly c. The price level rises d. Exports rise and imports fall 5. The aggregate demand curve shows; a. An inverse relationship between consumption and the price level b. An inverse relationship between consumption and savings c. An inverse relationship between GDP and the price level d. An inverse relationship between GDP and savings 6. A recessionary gap exists when: a. Total spending is less than output b. Inventories are declining c. The price level is failing d. Equilibrium GDP is less than full-employment GDP 7. Total savings in the economy will typically equal total investment a. At full employment GDP b. At equilibrium GDP c. Only in a market economy d. Only when there is a recessionary gap....
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This note was uploaded on 09/09/2008 for the course ECON 202 taught by Professor Fernandez during the Fall '08 term at University of Louisville.

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