Econ_002_prelim1_ans_kyle - Prelim I Econ 002 Kyle . Answer...

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Prelim I Econ 002 Kyle . Answer Key Revised _A__ 1. An expansionary monetary policy has the following effects: _______________ and expansionary fiscal policy has the following effects: a. increases the money supply, and decreases the interest rate; increase in government spending and decrease in the interest rate c. increase in aggregate expenditures and increase in the interest rate; increases the money supply and decreases the interest rate; d. increases the money supply and decreases the interest rate;. increase in taxes and decrease in the interest rate b. decrease in taxes and decrease in the interest rate; increases the money supply and increases the interest rate; e. increases the money supply, and decreases the interest rate; increase in aggregate expenditures and increase in the interest rate C__ 2. Which of the following is considered an investment expenditure in 2008? a. The Smiths on January 1, 2008 buy a home built in 1990 b. The federal government pays the salary of a captain in the Air Force in 2008 c. Jack’s Boat Storage buys a new boat lift on February 2, 2008 d. Chairs-R-Us buys a used lathe to manufacture chairs on January 2, 2008 e. All of the above. Another trick buying coal or iron ore deposit is never part of investment because coal and iron ore are natural resources. Investment isexpenditures on currently produced capital goods. _A___3. Which of the following would NOT be included in GDP? a. Pam grows tomatoes in her home garden All non market production is excluded b. Mike purchases a new suit to wear to work c. Dwight purchases a new Ford Taurus d. Dunder Bank purchases new computers for its loan officers e. All of the above ____ 4. The population of Dunderland is 100 persons. There are currently 10 persons who are discouraged unemployed workers, 6 persons are unemployed and looking for a job, 54 persons are currently employed, and 5 persons are currently serving in the army. The unemployment rate is a. 40% = 40/100 b. 10% = 6 / 60 unemployed = 6 and labor force = 60 = 6+56 c. 10.7% =6/56 d. 56% = 56/100 e, 44% = (100 – 56) / 100 A___ 5. Whenever there is an increase in autonomous consumption spending by $100 billion, there will be a. an upward shift in the planned aggregate expenditure line by $100 billion causing equilibrium GDP to rise by more than $100 billion b. an upward shift in the planned aggregate expenditure line by more than $100 due to the multiplier
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Econ_002_prelim1_ans_kyle - Prelim I Econ 002 Kyle . Answer...

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