ch 7,8 test - Page 1 of 17 Test Bank Macroeconomics: Theory...

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Unformatted text preview: Page 1 of 17 Test Bank Macroeconomics: Theory and Policy Chapter 07 & 08: Goods Market Equilibrium B. Modjtahedi Question 1 The national income identity says that: A. Exports are identically equal to imports B. National income is identically equal to national consumption C. GDP is identically equal to national consumption D. GDP is identically equal to total expenditure E. None of the above. Question 2 Melissa buys a laptop for her son. National income accountants classify this purchase as: A. Consumption B. Investment C. Government spending D. Net exports E. None of the above. Question 3 GM Corporation buys a laptop for one of its employees. National income accountants classify this purchase as: A. Consumption B. Investment C. Government spending D. Net exports E. None of the above. Question 4 Saudi Arabia buys a U.S.-made laptop. This transaction will affect: A. Consumption B. Investment C. Government spending D. Net exports E. None of the above. Question 5 Consider the following data for a country: C = 10 I = 12 G = 8 EX = 15 IM = 5 Y = 40 The data indicates that A. There is excess demand for goods. Page 2 of 17 B. There is excess supply of goods. C. The goods market is in equilibrium. D. There is unplanned inventory accumulation. E. None of the above. Question 6 Consider the following data for a country: C = 10 I = 12 G = 8 EX = 15 IM = 5 Y = 30 The data indicates that A. There is excess demand for goods. B. There is excess supply of goods. C. The goods market is in equilibrium. D. There is unplanned inventory accumulation. E. None of the above. Question 7 Consider the following data for a country: C = 10 I = 12 G = 8 EX = 15 IM = 5 Y = 50 The data indicates that A. There is excess demand for goods. B. There is excess supply of goods. C. The goods market is in equilibrium. D. There is unplanned inventory reduction. E. None of the above. Question 8 Consider the following data for a country in 2006: C = 10 I = 2 G = 8 EX = 15 IM = 5 Y = 40 The data indicates that A. In 2006 the goods market was in equilibrium and unplanned changes in inventory were zero. Page 3 of 17 B. In 2006 there was an excess supply of goods and the unplanned increase in inventories was 10 units. C. In 2006 there was an excess demand for goods and the unplanned decrease in inventories was 10 units. D. In 2006 there was an excess demand for goods and the unplanned decrease in inventories was 40 units. E. None of the above. Question 9 Which of the following is correct? A. Y > AD (Unplanned changes in inventories) < 0 B. Y < AD (Unplanned changes in inventories) > 0 C. Y > AD (Unplanned changes in inventories) = 0 D. Y > AD (Unplanned changes in inventories) > 0 E. None of the above....
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This note was uploaded on 07/20/2010 for the course ECN ecn 001b taught by Professor B.modjtahedi during the Winter '09 term at UC Davis.

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ch 7,8 test - Page 1 of 17 Test Bank Macroeconomics: Theory...

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