fad3 exam question

fad3 exam question - MACROECONOMICS CHAPTER NINE EXAM...

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MACROECONOMICS CHAPTER NINE EXAM Student: ___________________________________________________________________________ 1. Which one of the following is not a shortcoming of the aggregate expenditures model? A. failure to show price level changes B. failure to allow for "self-correction" of the economy C. failure to account for cost-push inflation D. failure to account for cyclical unemployment 2. The multiplier associated with a change in government purchases is: A. always equal to 1. B. smaller than that associated with an equal change in taxes. C. the same as that associated with a change in investment. D. less than that associated with a change in investment. 3. A private closed economy will expand when: A. actual GDP is less than potential GDP. B. unplanned decreases in inventories occur. C. aggregate expenditures are less than GDP. D. unplanned increases in inventories occur. 4. If the MPS is .25 and the economy has a recessionary expenditure gap of $5 billion, then equilibrium GDP is: A. $5 billion below the full-employment GDP. B. $5 billion above the full-employment GDP. C. $20 billion below the full-employment GDP. D. $20 billion above the full-employment GDP. 1
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5. In which of the following situations for a private closed economy will the level of GDP expand? A. when planned investment exceeds saving B. when planned investment exceeds consumption C. when saving exceeds consumption D. when consumption exceeds investment
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This note was uploaded on 08/01/2010 for the course ECON 1011 taught by Professor Edygriffin during the Spring '10 term at FGCU.

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fad3 exam question - MACROECONOMICS CHAPTER NINE EXAM...

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