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QUIZ: Introduction to Macroeconomics 09 QUIZ: Introduction to Macroeconomics 09 Điểm: 72/100
1.If the multiplier is 5, then the MPC is(4 Điểm) a. 0.05. b. 0.5. c. 0.6. d. 0.8. ✓ 2.Tax cuts(4 Điểm) a.
and increases in government expenditures shift aggregate demand right. ✓ b.
and increases in government expenditures shift aggregate demand left. c.
shift aggregate demand right while increases in government expenditures shiftaggregate demand left. d.
shift aggregate demand left while increases in government expenditures shiftaggregate demand right.
3.The long-run effect of an increase in government spending is to raise(4 Điểm)
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QUIZ: Introduction to Macroeconomics 09 a.
both real output and the price level. b.
real output and lower the price level. c.
real output and leave the price level unchanged. d.
the price level and leave real output unchanged. ✓
4.Which of the following both shift aggregate demand left?(4 Điểm) a.
a decrease in taxes and at a given price level consumers feel more wealthy b.
a decrease in taxes and at a given price level consumers feel less wealthy c.
an increase in taxes and at a given price level consumers feel more wealthy d.
an increase in taxes and at a given price level consumers feel less wealthy ✓
5.Other things the same, if the long-run aggregate supply curve shifts left, prices (4 Điểm) a. and output both increase. b. and output both decrease. c.
increase and output decreases. ✓ d.
decrease and output increases.
6.The price of imported oil rises. If the government wanted to stabilize output,
which of the following could it do?(4 Điểm) a.
increase government expenditures or increase the money supply b.
increase government expenditures or decrease the money supply c.
decrease government expenditures or increase the money supply d.
decrease government expenditures or decrease the money supply
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QUIZ: Introduction to Macroeconomics 09
7.Suppose that the MPC is 0.60; there is no investment accelerator; and there
are no crowding-out effects. If government expenditures increase by $25
billion, then aggregate demand(4 Điểm) a.
shifts rightward by $62.5 billion. ✓ b.
shifts rightward by $50.0 billion. c.
shifts rightward by $32.5 billion. d. None of the above is correct.
8.The long-run aggregate supply curve shifts right if(4 Điểm) a.
immigration from abroad increases. b. the capital stock increases. c. technology advances. d.
All of the above are correct. ✓9.Crowding out refers to a decrease in (4 Điểm) a.
The price level caused by a beneficial supply shock b.
investment spending caused by an increase in the interest rate ✓excess
reserves caused by a currency drain c.
excess reserves cause by an increase in reserve requirements.
10.Which of the following would cause prices and real GDP to rise in the short run?(4 Điểm) a.
Short-run aggregate supply shifts right. b.
Short-run aggregate supply shifts left. c.
Aggregate demand shifts right. ✓ d. Aggregate demand shifts left.
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QUIZ: Introduction to Macroeconomics 09
11.The aggregate quantity of goods and services demanded changes as the price
level rises because(4 Điểm) a.
real wealth falls, interest rates rise, and the dollar appreciates✓ b.
real wealth falls, interest rates rise, and the dollar depreciates. c.
real wealth rises, interest rates fall, and the dollar appreciates. d.
real wealth rises, interest rates fall, and the dollar depreciates.
12.Which of the following would cause stagflation?(4 Điểm) a.
rising government expenditures b. rising oil prices ✓ c. a falling money supply d. technical progress
13.Other things the same, an increase in the price level makes the dollars people hold worth(4 Điểm) a. more, so they can buy more. b. more, so they can buy less. c. less, so they can buy more. d.
less, so they can buy less. ✓
14.Other things the same, when the government spends more, the initial effect is that
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QUIZ: Introduction to Macroeconomics 09 (4 Điểm) a.
aggregate demand shifts right. ✓ b. aggregate demand shifts left. c.
aggregate supply shifts right. d. aggregate supply shifts left.
15.Assuming a multiplier effect, but no crowding-out or investment-accelerator
effects, a $100 billion increase in government expenditures shifts aggregate (4 Điểm) a.
demand rightward by more than $100 billion. ✓ b.
demand rightward by less than $100 billion. c.
supply leftward by more than $100 billion. d.
supply leftward by less than $100 billion.
16.Which of the following adjust to bring aggregate supply and demand into
balance?(4 Điểm) the price level and real output ✓ the real rate of interest and the
money supply government expenditures and taxes the saving rate and net exports
17.Which of the following shifts aggregate demand to the right?(4 Điểm) a.
Congress reduces purchases of new weapons systems. b.
The Fed buys bonds in the open market. ✓The price level falls. c. Net exports fall.
18.Recessions in China and India would cause(4 Điểm)
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QUIZ: Introduction to Macroeconomics 09 a.
the U.S. price level and real GDP to rise. b.
the U.S. price level and real GDP to fall. ✓the U.S. price level to rise and real GDP to fall. c.
the U.S. price level to fall and real GDP to rise.
19.The sticky-wage theory of the short-run aggregate supply curve says that
when the price level rises more than expected,(4 Điểm) a.
production is more profitable and employment rises. ✓ b.
production is more profitable and employment falls. c.
production is less profitable and employment rises. d.
production is less profitable and employment falls.
20.Open-market purchases(4 Điểm) a.
increase investment and real GDP. ✓ b.
decrease investment and increase real GDP. c.
increase investment and decrease real GDP. d.
decrease investment and real GDP.
21.If the economy is initially at long-run equilibrium and aggregate demand
declines, then in the long run the price level(4 Điểm) a.
and output are higher than in the original long-run equilibrium. b.
and output are lower than in the original long-run equilibrium. c.
is lower and output is the same as the original long-run equilibrium. ✓
d. is the same and output is lower than in the original long-run equilibrium.
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QUIZ: Introduction to Macroeconomics 09
22.Changes in the price level affect which components of aggregate demand? (4 Điểm) a.
only consumption and investment b.
only consumption and net exports c. only investment d.
consumption, investment, and net exports ✓
23.If businesses and consumers become pessimistic, the Federal Reserve can
attempt to reduce the impact on the price level and real GDP by(4 Điểm) a.
increasing the money supply, which raises interest rates. b.
increasing the money supply, which lowers interest rates. ✓ c.
decreasing the money supply, which raises interest rates. d.
decreasing the money supply, which lowers interest rates.
24.Other things the same, if the price level rises, then domestic interest rates (4 Điểm) a.
rise, so domestic residents will want to hold more foreign bonds. b.
rise, so domestic residents will want to hold fewer foreign bonds. ✓ c.
fall, so domestic residents will want to hold more foreign bonds. d.
fall, so domestic residents will want to hold fewer foreign bonds.
25.If businesses and consumers become pessimistic, the Federal Reserve can
attempt to reduce the impact on the price level and real GDP by(4 Điểm)
a. increasing the money supply, which raises interest rates.
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QUIZ: Introduction to Macroeconomics 09
b. increasing the money supply, which lowers interest rates. ✓
c. decreasing the money supply, which raises interest rates.
d. decreasing the money supply, which lowers interest rates.
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