Final A Mock

Final A Mock - Exam Name_ MULTIPLE CHOICE. Choose the one...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) By 2006, the U.S. trade deficit as a percentage of U.S. output was approximately equal to: A) 20% B) 1% C) 33% D) 6% 2) Use the following information to answer this question. If nominal GDP rises from $100 trillion to $120 trillion, while the GDP deflator rises from 2.0 to 2.2, the percentage change in real GDP is approximately equal to: A) 0% B) 10% C) - 10% D) 5% E) 20% 3) Suppose business confidence decreases causing a reduction in investment. Based on our understanding of the model presented in Chapter 3, we know with certainty that a reduction in investment will cause: A) a reduction in the marginal propensity to save B) a reduction in the multiplier C) a reduction in consumption as the economy adjusts to this decrease in investment D) an increase in the multiplier 4) The LM curve shifts down (or, equivalently, to the right) when which of the following occurs? A) an increase in taxes. B) an increase in consumer confidence. C) an open market sale of bonds by the central bank. D) an increase in output. E) none of the above. 5) In the United States, how many workers become unemployed, on average, every day? A) 100,000 B) 50,000 C) 10,000 D) 5,000 6) Assume the economy is initially operating at the natural level of output. Now suppose a budget is passed that calls for an increase in government spending. This increase in government spending will, in the medium run, have NO effect on which of the following? A) the interest rate.
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This note was uploaded on 01/14/2010 for the course ECON 101 taught by Professor Miyanishi during the Spring '08 term at UC Davis.

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Final A Mock - Exam Name_ MULTIPLE CHOICE. Choose the one...

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