If we know that the exchange rate is 0.8 dollars per euro, then we know that the
exchange rate of euros per dollars is
a. 0.8
b. 1.8
c. 1.25
d. less than 1.0
e. 5
Assuming the economy was in equilibrium, use the following information to calculate
the total value of injections.
Total leakages are
a. $2.5 trillion
b. $2.7 trillion
c. $3.0 trillion
d. $5.2 trillion
e. $5.7 trillion
The classical model is based on the assumption that
a. all markets clear
b. all demand curves are horizontal
c. all supply curves are vertical
d. the government’s budget is always balanced
e. the quantity of loanable funds demanded is independent of the interest rate
Which of the following is true?
a. As the national debt increases relative to GDP, interest on the debt relative to GDP
declines.
b. As the national debt decreases relative to GDP, interest on the debt relative to GDP
rises.
c. As the national debt increases relative to GDP, interest on the debt relative to GDP
rises.
d. The national debt relative to GDP has been constant in recent years.
e. The national debt relative to GDP has been falling in the last few years.
Which of the following is the best example of a variable cost?
To make a market efficient in the presence of a negative externality, a tax could be
imposed that is equal to the marginal
If demand is price elastic, a decrease in seller’s total revenue would result from a(n)
The labor demand curve shows the
a. number of workers that firms will want to hire at any wage rate
b. number of people who will want jobs at any wage rate
c. amount of labor that a firm needs to produce a given amount of output
d. equilibrium wage rate and number of workers employed
e. amount of output workers will be able to buy for a given number of hours worked
Which of the following would lead to a rightward movement along the aggregate
expenditure line rather than a shift of the line itself?
a. A reduction of the marginal propensity to consume
b. A decrease in income of $100 billion
c. An increase in income of $50 billion
d. An increase in the interest rate
e. A $50 billion decrease in autonomous consumption spending
Combinations of goods on the production possibilities frontier
The aggregate supply curve would shift downward if
a. unit costs increase due to an increase in output
b. the wage rate increases
c. good weather increases crop yields
d. an increase in real GDP causes the price level to decrease
e. an oil embargo causes world oil prices to rise
The supply of bonds to the bond market
a. is positively related to the demand for stocks
b. is inversely related to the interest rate
c. is positively related to income
d. is positively related to the demand for bonds
e. only changes if new bonds are issued