The simple deposit multiplier is
a. the reciprocal of the required reserve ratio.
b. always 1.
c. the same as the required reserve ratio.
d. different from bank to bank even if the required reserve ratio is the same for all
banks.
The gap between the higher equilibrium tuition and lower student tuition is $4,000 at
university A and $10,000 at university B.It follows that
a. if the supply of openings at each university is the same, then the demand to attend
university B must be higher than the demand to attend university A.
b. the supply of openings is necessarily larger at university A than B.
c. instructors at university B are likely to be more punctual for their office hours than
instructors at university A.
d. instructors at university A are more likely to be punctual for their office hours than
instructors at university B.
e. none of the above
By looking at the different slices of a pie chart, and comparing one slice to another, it is
possible to quickly estimate
a. relative relationships.
b. absolute relationships.
c. the slope of a line.
d. the slope of a curve.
e. none of the above
If a person is waiting to be called back to a job from which she has been laid off, how is
she classified by the Bureau of Labor Statistics?
a. as not in the labor force
b. as an unemployed person
c. as an employed person
d. as a discouraged worker
An inflationary gap exists when AD and SRAS
a. fail to intersect.
b. intersect to the right of Natural Real GDP.
c. intersect to the left of Natural Real GDP.
d. both have a positive slope.
If a bank’s deposits at the Federal Reserve equal $40 million and its total reserves equal
$35 million, what does the bank’s vault cash equal?
a. $5 million
b. $75 million
c. $37.5 million
d. $30 million
Real estate in San Francisco that sold for $16 before gold was discovered in California
was valued at $4,500 eighteen months later, as a result of the gold rush.
a. True
b. False
Exhibit 17-4
Assume that the starting point in graphs (a) and (b) in Exhibit 17-4 is point 1.After a
decrease in income taxes, there would be a ______________________ which would
cause a movement along the production function from point 1 to point
______________.The result would be a shift of the LRAS curve from LRAS1 to
_______________ resulting in _______________..
a. leftward shift of the labor supply curve from SL1 to SL3; movement along the
production function to point 3; LRAS3; a shrinking economy
b. rightward shift of the labor supply curve from SL1 to SL2; movement along the
production function to point 3; LRAS3; a shrinking economy
c. leftward shift of the labor supply curve from SL1 to SL3; movement along the
production function to point 2; LRAS2; economic growth
d. rightward shift of the labor supply curve from SL1 to SL2; movement along the
production function to point 2; LRAS2; economic growth
Exhibit 6-2
The employment rate in year 1 is
a. 12 1/2 percent.
b. 70 percent.
c. 87 1/2 percent.
d. 30 percent.
e. 10 percent.
Suppose there is a decrease in U.S. income and Mexican income does not change. We
would expect to see
a. both the dollar and the peso depreciate.
b. both the dollar and the peso appreciate.
c. the dollar depreciate and the peso appreciate.
d. the dollar appreciate and the peso depreciate.
To an economist, the terms “money” and “wealth” are synonyms.
a. True
b. False
Considering both the Keynesian and the aggregate demand-supply frameworks, if
households as a group experience an increase in wealth at a given price level, then the
TE curve shifts __________, the AD curve shifts __________, and Real GDP
__________.
a. downward; leftward; decreases
b. downward; rightward; decreases
c. upward; rightward; increases
d. upward; leftward; increases
According to efficiency wage models, labor productivity depends on
a. the number of employees at a firm; the smaller the number of employees, the more
productive each employee is.
b. the amount of capital that employees have to work with.
c. the wage rate the firm pays its employees; a cut in wages can cause labor productivity
to decline.
d. whether or not the economy is currently producing Natural Real GDP.
e. none of the above
Public choice is concerned with decision making by
a. consumers.
b. businesses.
c. government.
d. foreigners.
e. consumers and businesses.
The demand-for-money curve illustrates the __________ relationship between the
quantity demanded of money and __________.
a. inverse; the interest rate
b. direct; GDP.
c. direct; the interest rate
d. inverse; GDP
Exhibit 34-11
If the world price (PW) is operational in the market, then U.S. imports equal
a. Q4 – Q2.
b. Q2 – Q3.
c. Q4 – Q3.
d. Q2 – Q1.
e. Q3 – Q1.
Net interest is the interest paid out by US households and government minus the
interest income they received.
a. True
b. False
In general, agricultural price supports
a. raise food prices.
b. have no impact on food prices.
c. are designed to lower food prices.
d. c and d
The study of an economy’s price level is explicitly a part of
a. macroeconomics.
b. microeconomics.
c. positive economics.
d. normative economics.
If the CPI is 230 in year 1 and 249 in year 2, what is the approximate percentage change
in prices between the two years?
a. 7.6 percent
b. 8.3 percent
c. 15.7 percent
d. 11.4 percent
e. 6.0 percent