Final%20Exam%20Macro%20Edison%20Students

Final%20Exam%20Macro%20Edison%20Students - Final Exam Macro...

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Final Exam Macro Edison State College Student: ___________________________________________________________________________ 1. In the United States from 1929 to 1933, real GDP _____________, and the unemployment rate ________________. A. declined by 27 percent; rose to 25 percent. B. increased by 21 percent; fell to 2 percent. C. declined by 21 percent; rose to 27 percent. D. declined by 40 percent; rose to 50 percent. 2. In the aggregate expenditures model, it is assumed that investment: A. automatically changes in response to changes in real GDP. B. changes by less in percentage terms than changes in real GDP. C. does not respond to changes in interest rates. D. does not change when real GDP changes. 3. Refer to the above data. At the $370 billion level of DI the APS is approximately: A. 4 percent. B. 7 percent. C. 1 percent. D. 16 percent.
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4. Refer to the above diagram that applies to a private closed economy. If aggregate expenditures are C + I g 2 , the amount of saving at income level J is: A. LK . B. KN . C. KD . D. JD . 5. The equilibrium level of GDP in a private closed economy is where: A. MPC = APC. B. unemployment is about 3 percent of the labor force. C. consumption equals saving. D. aggregate expenditures equal GDP. 6. For a private closed economy, an unintended decline in inventories suggests that: A. aggregate expenditures are less than the business sector expected them to be. B. aggregate expenditures exceed production. C. actual investment exceeds saving. D. planned investment is greater than consumption. 7. When investment remains the same at each level of GDP in a private closed economy, the slope of the aggregate expenditures schedule: A. exceeds the MPC. B. is less than the MPC. C. equals the MPS. D. equals the MPC.
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8. Refer to the above diagram for a private closed economy. Gross investment: A. is positively related to the level of GDP. B. is negatively related to the level of GDP. C. is independent of the level of GDP. D. must be subtracted from consumption to determine aggregate expenditures. 9. Refer to the above diagram for a private closed economy. At the $400 level of GDP: A. aggregate expenditures exceed GDP with the result that GDP will rise. B. consumption is $350 and planned investment is zero so that aggregate expenditures are $350. C. consumption is $300 and planned investment is $50 so that aggregate expenditures are $350. D. consumption is $300 and actual investment is $100 so that aggregate expenditures are $400. 10. Refer to the above diagram for a private closed economy. At the $300 level of GDP: A. aggregate expenditures and GDP are equal. B. consumption is $200 and planned investment is $50. C. saving exceeds planned investment. D. consumption plus saving is $400.
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This note was uploaded on 04/25/2010 for the course ECON 2013 taught by Professor Cassidy during the Spring '09 term at Valencia.

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Final%20Exam%20Macro%20Edison%20Students - Final Exam Macro...

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