Macroeconomics Quiz CH 12 Part II

Macroeconomics Quiz CH 12 Part II - Chapter 12 Part II 1....

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Chapter 12 Part II 1. During an economic downturn, households respond to a decline in income by A) reducing consumption. B) reducing taxes. C) negotiating higher wages. D) increasing the quantity of labor supplied. Correct Answer(s): A 2. In the aggregate expenditures model, in equilibrium, A) aggregate expenditures equal real GDP produced. B) aggregate expenditures equalinvestment. C) aggregate expenditures equalsaving. D) aggregate expenditures equal consumption. Correct Answer(s): A 3. Which of the following events cause the aggregate expenditures curve to "shift" downwards? A) Firms become optimistic about future profits and increase investment spending. B) The government reduces property tax rates. C) The government cuts spending on education. D) An increase in exports. Correct Answer(s): C 4.
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The relationship between aggregate expenditures and real GDP is shown by the A) autonomous expenditures curve.
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This note was uploaded on 03/07/2012 for the course ECON 2301 taught by Professor Staff during the Spring '08 term at HCCS.

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Macroeconomics Quiz CH 12 Part II - Chapter 12 Part II 1....

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