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  • Due on Apr. 04, 2012
  • Asked on Apr 04, 2012 at 8:33:46PM
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gtrudebai1
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3. (TCO 6) The lag between the time and the need for fiscal action is recognized and the time the action is taken is referred to as the (Points : 1)
       crowding-out lag
       recognition lag
       operational lag
       administrative lag

4. (TCO 5) An economy's aggregate demand curve shifts leftward or rightward by more than changes in initial spending because of the (Points : 1)
       net export effect.
       wealth effect.
       real-balances effect.
       multiplier effect.

 

5. (TCO 6) Other things equal, a reduction in personal and business taxes can be expected to (Points : 1)
       increase aggregate demand and decrease aggregate supply.
       increase both aggregate demand and aggregate supply.
       decrease both aggregate demand and aggregate supply.
       decrease aggregate demand and increase aggregate supply.

 

6. (TCO 6) The MPC can be defined as that fraction of a (Points : 1)
       change in income that is not spent.
       change in income that is spent.
       given total income that is not consumed.
       given total income that is consumed.

 

7. (TCO 6) Dissaving means (Points : 1)
       the same thing as disinvesting.
       that households are spending more than their current incomes.
       that saving and investment are equal.
       that disposable income is less than zero.

 

8. (TCO 5) Refer to the graph. Which of the following changes will shift AD1 to AD2? 

 

Graph Description

(Points : 1)
       A cut in personal and business taxes
       An increase in the value of the dollar relative to other currencies
       A shrinkage in the value of stocks and other financial assets
       An increase in real interest rates

 

9. (TCO 6) The multiplier is (Points : 1)
       1/MPC.
       1/(1 + MPC).
       1/MPS.
       1/(1 - MPS).

 

10. (TCO 5) The American Recovery and Reinvestment Act of 2009 was implemented primarily to (Points : 1)
       reduce inflationary pressure caused by oil price increases.
       curb the overspending by households that contributed to the Great Recession.
       bring the Federal budget back into balance.
       stimulate aggregate demand and employment.

 

11. (TCO 5) What effect would each of the following have on aggregate demand or aggregate supply? Explain.

a.A widespread fear by consumers of an impending economic depression
b. Labor Productivity (Output per man hour) goes up
(Points : 5)

      


12. (TCO 6) How can the government use different fiscal policies to [a] lower unemployment and [b] reduce inflation? (Points : 5)

 

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Preview: ... regate demand and aggregate supply 6. chan ...
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Preview: ...       operational lag        administrative lag    An economy's aggregate demand curve shifts leftward or rightward by more than changes in initial spending because of the (Points : 1)         net export effect.        wealth effect.         real-balances effect.        multiplier effect.   5.  (TCO 6) Other things equal, a reduction in personal and business taxes can be expected to (Points : 1)         increase aggregate demand and decrease aggregate supply.         increase both aggregate demand and aggregate supply.        decrease both aggregate demand and aggregate supply.        decrease aggregate demand and increase aggregate supply.   6.  (TCO 6) The MPC can be defined as that fraction of a (Poi ...
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Preview: ... ch of the following have on aggregate demand or aggregate supply? Explain.   a.A widespread fear by consumers of an impending economic depression   There would be a shift in aggregate demand to the left. The fear of economic turmoil would cause people to save money rather than consume or invest. Without consumption, inventories pile up, firms produce less/ pay fewer workers, unemployment increases, fewer people can afford goods/services (decreased demand).   b. Labor Productivity (Output per man hour) goes up (Points : 5)  There would be a shift in the aggregate supply curve to the right. As productivity increase, there is a higher level of output.          12.  (TCO 6) How can the government use different fiscal policies to [a] lower unemployment and [b] reduce inflation? (Points : 5)   The government conducts fiscal policy through the treasury, which is different than the Federal Reserve’s actions with monetary policy. To lower unemployment the governm ...
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Preview: ... referred to as the (Points : 1)        crowding ...
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Preview: ... olds are spending more than their current incomes.         that saving and investment are equal.         that disposable income is less than zero.     9.  (TCO 6) The multiplier is (Points : 1)         1/MPC.        1/(1 MPC).         1/MPS.         1/(1 - MPS).     10.  (TCO 5) The American Recovery and Reinvestment Act of 2009 was implemented primarily to (Points : 1)         reduce inflationary pressure caused by oil price increases.        curb the overspending by households that contributed to the Great Recession.        bring the Federal budget back into balance.         stimulate aggregate demand and employment. 12.  (TCO 6) How can the government use different fiscal policies to [a] lower unemploy ...
The full tutorial is about 515 words long .