Part3_ExtraHomework

Part3_ExtraHomework - Intro. Macro. Extra Homework...

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Intro. Macro. Extra Homework Questions Part 3 These questions are not a substitute for the questions in your study guide. These questions are to be done in addition to the questions in your study guide. Do not limit your studying to just these questions or only these topics. These questions will not be graded. They are to help you study. . 1 . I f t h e m a r g i n a l p r o p e n s i t y t o c o n s u m e i s 0 . 7 5 a nd government spending decreases by $2,000 billion, what is the change in GDP? a. -$2,000 billion b. -$8,000 billion c. $2,000 billion d. $1,500 billion e. $8,000 billion 2 . W h i c h o f t h e f o l l o w i n g w i l l c a u s e t h e a g g r e g a t e demand curve to shift to the right? a. an increase in the price level b. a decrease in the price level c. an increase in government purchases d. an increase in taxes e. an increase in the interest rate
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3 . R e f e r t o F i g u r e Y - 3 . W h i c h o f t h e f o l l o w i n g m o s t likely caused the shifts from AE 1 to AE 2 , and from AD 1 to AD 2 ? a. a decrease in the money supply b. an increase in government purchases c. an increase in investment spending d. an increase in autonomous consumption e. an increase in taxes 4 . I f t h e g o v e r n m e n t a n n o u n c e s a n e w i n c r e a s e i n s pending with no change in taxes, which of the following would most likely occur? a. no change in the aggregate demand curve as well as no movement along it b. a leftward shift of the aggregate demand curve c. an upward movement along the aggregate demand curve d. a rightward shift of the aggregate demand curve e. a downward movement along the aggregate demand curve
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5 . I f t h e g o v e r n m e n t a n n o u n c e s a b i g t a x c u t , w h i c h of the following combinations of events would be most likely to occur? a. an upward shift of the aggregate expenditure line, and a rightward shift of the aggregate demand curve b. a downward shift of the aggregate expenditure line, and a leftward shift of the aggregate demand curve c. an downward shift of the aggregate expenditure line, and no shift of the aggregate demand
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This note was uploaded on 03/23/2011 for the course ECON 101 taught by Professor Gottlieb during the Spring '08 term at Rutgers.

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Part3_ExtraHomework - Intro. Macro. Extra Homework...

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