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# Q2 Consider the following statements and decide which are true. Record the correct combination from the possibilities listed below the list of...

Hi,
I resubmited my file below.
I would like my questions are checked whether it's right or not, if not please correct it for me (with the brief explaination-I appreciate that).
Thank you so much
John
Q2 Consider the following statements and decide which are true. Record the correct combination from the possibilities listed below the list of statements. 1. To arrive at aggregate expenditure in an open economy requires the addition of both exports and imports. T 2. A reduction in taxes increases the ability of households to spend and save because it increases disposable income. T 3. The multiplier for a governed economy is the reciprocal of the MPC. F 4. A reduction in the government’s budget surplus is the appropriate policy for combating inflation. F 5. If the MPS equals 0.25 and the marginal propensity to tax is 0.20 for a governed but closed economy then the multiplier will be equal to 2.5. T 6. In a closed but governed economy with a multiplier equal to 4, a decrease in government spending or a decrease in investment will result in the same change in real GDP. T 7. The subtraction of exports from aggregate expenditure reduces the slope of the aggregate expenditure line. ? 8. The addition of net exports to aggregate expenditure reduces the slope of the aggregate expenditure line. ? 9. The multiplier for an open, governed economy contains the marginal propensities to import, save and tax. T 10. An increase in the marginal propensity to import will reduce the multiplier for an open, governed economy. F 11. A fall in the slope of the aggregate expenditure schedule implies a larger multiplier T 12. For a governed, closed economy, [MPT + MPS(1 – MPT)] times the multiplier is equal to one . T 13. When the government balances its budget, government spending equals taxation. There will be no change in income because the multiplied impact of government spending will be offset exactly (and in the opposite direction) by the change in taxation needed to balance the budget. T 14. An increase in net exports shifts the aggregate expenditure line upward and results in a higher level of real GDP. T 15. The volume of Australian exports depends primarily on the level of real GDP in Australia. F Question mark (?) is that statement I don’t know the answer Choose the combination of statements that you think contains the largest number of TRUE statements. A 2 4 5 8 10 12 14 15 B 2 3 5 7 9 11 13 14 C 1 3 6 8 10 12 13 15 D 2 5 6 8 9 10 12 14 E 1 2 4 6 7 11 13 15 F 1 3 4 7 9 11 13 15 Which option should I choose?
Q4 Consider the following statements and decide which are true. Record the correct combination from the possibilities listed below the list of statements. 1. Ceteris paribus , a fall in the domestic price level makes our exports more competitive and decreases our demand for imports. ? 2. A rise in the price level is associated with decreases in consumption, investment and aggregate demand because interest rates fall at the same time. F 3. A shift to the right of the aggregate demand curve implies more spending at each and every price level. T 4. A significant increase in the value of stocks and bonds owned by households could be expected to shift the aggregate demand curve to the right. T 5. The aggregate demand curve represents the quantity of real GDP that will be purchased given constant income, aggregate tastes and other non-price determinants. F 6. A widespread belief in the probability of an income tax increase is likely to shift the aggregate demand curve to the right. T 7. A fall in real wealth leads to a rise in consumer spending. F 8. A decrease in income taxes will shift the aggregate demand curve to the left. F 9. Ceteris paribus , a decrease in imports associated with a recession helps to prevent aggregate demand from falling as far as it otherwise would in the absence of the decrease. ? 10. A rise in net exports brought on by a fall in imports shifts the aggregate demand curve to the right. T 11. Ultimately, a change in investment spending has no impact on aggregate demand – only changes in interest rates shift the aggregate demand curve. T 12. A reduction in education spending by the government implies a fall in aggregate demand and hence a move along and up the aggregate demand curve. F 13. When the government wants to spend more on defence without cuts elsewhere, taxes will have to rise to finance the added expenditures. ? 14. An upturn in the US business cycle increases aggregate demand in Australia via an increase in exports. T 15. A rise in interest rates due to contractionary monetary policy will decrease investment spending and hence shift the aggregate demand curve to the left. T Choose the combination of statements that you think contains the largest number of TRUE statements. A 2 5 7 8 11 12 13 15 B 1 3 4 6 9 10 14 15 C 1 2 4 6 8 10 12 14 D 3 5 6 7 10 11 13 14 E 1 4 6 8 9 12 14 15 F 2 3 5 7 8 9 11 13
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