ch12 - ch12 Student: _ 1. During the Great Depression,...

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ch12 Student: ___________________________________________________________________________ 1. During the Great Depression, Keynes advocated the use of _____ policy to increase the _____ goods and services. A. Monetary; demand for B. Fiscal; demand for C. Monetary; supply of D. Fiscal; supply of 2. Which of the following relies on government taxes and spending to change macro outcomes? A. Fiscal policy B. Monetary policy C. Income policy D. Foreign-trade policy 3. What fiscal policy tools are used to shift the aggregate demand curve? A. Government spending and interest rates B. Taxes and interest rates C. Government spending and taxes D. Taxes and employment rates 4. Fiscal policy includes: A. An increase in interest rates. B. An increase in taxes. C. A reduction in trade barriers. D. An increase in the minimum wage. 5. Fiscal policy includes: A. A decrease in immigration restrictions. B. A decrease in import barriers. C. An increase in government spending. D. An increase in the discount rate. 6. The total quantity of output demanded at alternative price levels refers to: A. Macro equilibrium. B. Consumption. C. Market demand. D. Aggregate demand. 7. Which of the following could cause a recession? A. A decline in aggregate demand B. A decline in unemployment C. An increase in aggregate supply D. An increase in government spending 8. Inflation occurs when: A. Aggregate demand increases faster than unemployment. B. Unemployment increases faster than the labor force. C. Aggregate demand increases faster than output. D. Output increases faster than unemployment.
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9. The four components of aggregate demand are: A. Net exports, income, interest, and investment. B. Consumption, investment, government spending, and net exports. C. Consumption, interest, and government spending. D. Net exports, government spending, investment, and foreign trade. 10. Which of the following is the largest component of aggregate demand for the U.S. economy? A. Consumption B. Government expenditures C. Business investment D. Net exports 11. Which of the following is not a component of aggregate demand? A. Consumption B. Net exports C. Investment D. Income transfers 12. Expenditure by households on final goods and services is referred to as: A. Investment. B. Disposable income. C. Consumption. D. Aggregate demand. 13. An improvement in consumer confidence will cause: A. A movement down the aggregate demand curve. B. The aggregate supply curve to shift to the right. C. The aggregate demand curve to shift to the right. D. The aggregate demand curve to shift to the left. 14. Ceteris paribus, an increase in _______ will cause an increase in ______. A. Disposable income; government spending B. Consumer confidence; aggregate demand C. Taxes; consumption D. Imports; disposable income 15. Ceteris paribus, _______ in consumer confidence will cause _______ in aggregate demand. A. A decrease; a decrease
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This note was uploaded on 01/24/2012 for the course BIOLOGY 1000 taught by Professor Joseph during the Fall '11 term at St. John's.

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ch12 - ch12 Student: _ 1. During the Great Depression,...

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