Review finals macroeconomics.docx - 1 Fixed investment...

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1. Fixed investment includes all of the following except a.machinery b. Inventor c. tools.d. factory buildings. Answer: INVENTORY 2. In exhibit 14.2 which curve represents long-run aggregate supply? Answer: long up 3. Which of the following would increase prices for U.S consumers? a. a tariff on imported automobiles b. an automobile import quota c. a foreign government subsidizing auto production d. (a) and (b) above only Answer: d. (a) and (b) above only 4. In the simplest Keynesian expenditure model,which of the following is fixed to allow for easy evaluation of changes in demand due to era income 5. Exhibit 17-2 a bank asserts consist of 1000000 in total reserves 2100000 in loans and a building worth 1200000. Its liabilities and capital consists of 3000000 in demand deposits and 1300000 in capital. Refer to exhibit 17-2. If the bank is required to keep reserves equal to one-third of deposits,what is the level of the bank’s excess reserves? How much could it loan out as a result?
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6. Discouraged workers are defined as those: Answer: d. who have given up looking for a job and are not counted as unemployed. 7. The time span between the beginning of a downturn and the time by which hard data to indicate a downturn is made available is Called Answer: d. the recognition lag. 8. Which of the following would constitute contraction are monetary policy by the fed? Answer: b. Open market sales of government securities, an increase in the discount rate, and an increase in reserve requirements 9. Which of the following is correct Answer: 10. Refer to exhibit 18-5. The change in producer surplus from free trade is equal to area: Answer: 11. Aggregate demand includes: Answer: the quantity of goods and services the government, households, firms, and customers abroad want to buy.
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