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| | During the mid-1980s, we observed a significant reduction in oil prices. In | ||||||||
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| | The IS curve will NOT shift when which of the following occurs? | ||||||||||
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| | Suppose the central bank decides it wishes to raise the interest rate (i). To do so, it will have to: | ||||||||
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| | The four components of national income are | ||||||||
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| | Suppose the private sector only hold currency (i.e. there are no banks). The demand for money is given by | ||||||||
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| | Suppose there is a simultaneous tax cut and open market sale of bonds. Which of the following must occur as a result of this? | ||||||||||
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| | In the national income accounts, all of the following are classified as government purchases except: | ||||||||
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| | Suppose the public only hold currency (i.e. there are no banks). The demand for money is given by | ||||||||
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| | Based on our understanding of the IS-LM model with the central bank holding the interest rate constant, we know that a tax cut: | ||||||||||
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| | Use the following information to answer the question below. | ||||||||
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| | Based on our understanding of the IS-LM model with the central bank holding the money supply constant, we know that a tax cut: | ||||||||||
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| Question 12 | | ||||||||
| | A reduction in income will cause: | ||||||||
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| | The IS curve will shift when which of the following occurs? | ||||||||||
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| | Which of the following expenditure items is NOT included in fixed investment spending (I)? | ||||||||
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| | Suppose a bond offers to pay $1000 in one year and currently sells for $900. Given this information, we know that the interest rate on the bond is: | ||||||||||
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| | If nominal GDP rises from $100 billion to $120 billion, while the GDP deflator rises from 2.0 to 2.2, the percentage change in real GDP is: | ||||||||
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| | Use the following information to answer the question below. | ||||||||
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Suppose that for the year 2005, a company spends $20 million on intermediate goods and $40 million on wages, with no other expenses. Also assume that its total sales are $90 million. The value added by this company is: | |||||||||
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| | Suppose there is a policy mix of contractionary monetary policy and expansionary fiscal policy. This combination of policies must cause: | ||||||||
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| | Assume that computers and oil are the only good produced in an economy. | ||||||||
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