ECON 203 Exam Questions and Verified
Answers 100%
Which of the following would both shift aggregate demand right? - ✔✔taxes decrease and
government expenditures increase.
An increase in household saving cause consumption to - ✔✔fall and aggregate demand to
increase.
Which of the following is correct? - ✔✔NCO = NX
If the government of Canada increased its budget deficit, then domestic investment - ✔✔net
exports would fall
The long-run aggregate supply curve shifts right if - ✔✔either immigration from abroad
increases or technology improves.
In the graph of the money market, the money supply curve is - ✔✔vertical. It shifts rightward if
the Fed buys bonds.
In the open-economy macroeconomic model, the supply of loanable funds comes from -
✔✔national saving
An American brewery sells dollars to obtain euros. It then uses the euros to buy brewing
equipment from a German company. These transactions - ✔✔decrease U.S. net capital outflow
because Germans obtain U.S. assets.
Other things the same, the aggregate quantity of goods demanded in the U.S. increases if -
✔✔real wealth rises
, Menu costs help explain - ✔✔sticky price theory
Part of the explanation for why the aggregate-demand curve slopes downward is that a
decrease in the price level - ✔✔decreases the real value of money.
increases the real value of the dollar in foreign exchange markets.
decreases the interest rate.
Suppose that the MPC is 0.7, there is no investment accelerator, and there are no crowding-out
effects. If government expenditures increase by $30 billion, then aggregate demand - ✔✔shifts
rightward by $100 billion.
The investment component of GDP measures spending on - ✔✔residential construction,
business equipment, business structures, and changes in inventory. During recessions it
declines by a relatively large amount.
The Federal Funds rate is the interest rate - ✔✔banks charge eachother for short term loans
In the open-economy macroeconomic model, the market for loanable funds identity can be
written as - ✔✔S = I - NCO
Other things the same, a decrease in the price level motivates people to hold - ✔✔less money,
so they lend more, and the interest rate falls.
which of the following shifts short-run aggregate supply right? - ✔✔an increase in immigration
from abroad
Answers 100%
Which of the following would both shift aggregate demand right? - ✔✔taxes decrease and
government expenditures increase.
An increase in household saving cause consumption to - ✔✔fall and aggregate demand to
increase.
Which of the following is correct? - ✔✔NCO = NX
If the government of Canada increased its budget deficit, then domestic investment - ✔✔net
exports would fall
The long-run aggregate supply curve shifts right if - ✔✔either immigration from abroad
increases or technology improves.
In the graph of the money market, the money supply curve is - ✔✔vertical. It shifts rightward if
the Fed buys bonds.
In the open-economy macroeconomic model, the supply of loanable funds comes from -
✔✔national saving
An American brewery sells dollars to obtain euros. It then uses the euros to buy brewing
equipment from a German company. These transactions - ✔✔decrease U.S. net capital outflow
because Germans obtain U.S. assets.
Other things the same, the aggregate quantity of goods demanded in the U.S. increases if -
✔✔real wealth rises
, Menu costs help explain - ✔✔sticky price theory
Part of the explanation for why the aggregate-demand curve slopes downward is that a
decrease in the price level - ✔✔decreases the real value of money.
increases the real value of the dollar in foreign exchange markets.
decreases the interest rate.
Suppose that the MPC is 0.7, there is no investment accelerator, and there are no crowding-out
effects. If government expenditures increase by $30 billion, then aggregate demand - ✔✔shifts
rightward by $100 billion.
The investment component of GDP measures spending on - ✔✔residential construction,
business equipment, business structures, and changes in inventory. During recessions it
declines by a relatively large amount.
The Federal Funds rate is the interest rate - ✔✔banks charge eachother for short term loans
In the open-economy macroeconomic model, the market for loanable funds identity can be
written as - ✔✔S = I - NCO
Other things the same, a decrease in the price level motivates people to hold - ✔✔less money,
so they lend more, and the interest rate falls.
which of the following shifts short-run aggregate supply right? - ✔✔an increase in immigration
from abroad
