e13f4 Foldvary Finalexamguide MMIV primavera

____ 1. Buyers of a product will pay the majority of a tax placed on a product under what circumstances?

____ 2. Refer to Figure showing supply, demand, tax wedge. The price that will be paid after the tax is

____ 3. Refer to Figure. If a tax is imposed in this market, the price buyers would now pay for the good would be

____ 4. If the supply of a good is relatively elastic, changing the price causes small or large change in the amounts that buyers are willing to buy or sellers are willing to sell? Or no change?

____ 5. Taxes on labor encourage all of the following EXCEPT

____ 6. When the size of a tax is doubled, the deadweight loss from the tax increase how much?

_ 7. Use the table of data to answer how much NNP for this economy is.

____ 8. Which of the following statements about nominal and real GDP is most accurate?

____ 9. The price index in the first year is X, in the second year is Y, and in the third year is Z.

What is the inflation rate between the first and second year and between the second and third year?

____ 10. The price index in 2001 is X, and in 2002 the price index is Z.

What is the inflation rate?

____ 11. The GDP deflator reflects the

____ 12. Over the last 100 years which of the following had growth rates higher than that of the United States?

____ 13. In the country of Krypton, the price of lead increased from $10 per pound to $11 per pound during a time when the overall price level increased by 5 percent. During this period, the real price of lead

____ 14. Suppose Japanese-based Sony Corporation builds and operates a new chip factory in the United States. Future production from such an investment would do what to US GNP and GDP relatively?

____ 15. The President of a developing country proposes that his country needs to help domestic firms by imposing trade restrictions. These are outward-or inward? oriented policies and most economists believe they would have beneficial or adverse? effects on growth.

____ 16. Which of the following is an observation made by Kremer in the Mankiw textbook?

____ 17. If the current market interest rate for loanable funds is below the equilibrium level, then there is a surplus or shortage? of loanable funds and the interest rate will rise or fall?

____ 18. What is the present value of a payment of $200 to be made one year from today if the interest rate is 10 percent?

____ 19. A firm has three different investment options, each costing $10 million. Option A will generate $12 million in revenue at the end of one year. Option B will generate $15 million in revenue at the end of two years. Option C will generate $18 million in revenue at the end of three years. Which option should the firm choose?

____ 20. Which of the following is not correct about the return on stocks and bonds and risk and insurance?

____ 21. Which of the following is not consistent with the efficient market hypothesis?

____ 22. Who would be included in the labor force?

____ 23. A person who is counted as unemployed by the BLS is

____ 24. The main cause of chronic (long-time) unemployment is

____ 25. When the Fed conducts open market purchases, bank reserves increase or decrease? and banks increase or decrease? lending?

____ 26. When the money market is drawn with the value of money on the vertical axis, as the price level increases, the value of money increases or decreases? so the quantity of money increases or decreases?

____ 27. In the open-economy macroeconomic model, the supply of loanable funds comes from

____ 28. A lower real interest rate decreases the quantity of loanable funds demanded or supplied? or investment or net capital outflow?

____ 29. If there is a shortage of loanable funds, the demand or supply? of/for loanable funds will shift how? so intersest rates rise or fall or stay put?

____ 30. Which of the following is included in the supply of dollars in the market for foreign-currency exchange in the open-economy macroeconomic model?

____ 31. If the U.S. government imposed import quotas on agricultural products, we would find the effects of this policy change on the exchange rate in the open-economy macroeconomic model by shifting

____ 32.Trade policies affect or not? a country's overall trade balance, but affect all or some? firms and industries the same or differently?

____ 33. Suppose that the U.S. imposed an import quota on beef. Sales of U.S. beef producers would rise or not change? and exports of other industries would increase or decline?.

____ 34. When the dollar depreciates, each dollar buys more? less? foreign currency, and so buys more? fewer? foreign goods.

____ 35. Which of the following shifts short-run aggregate supply right?

____ 36. Refer to Figure of AS and AD. If the economy starts at A and moves to D, the economy moves where?

____ 37. In the early 1930s in the United States, there was a major depression. Cycle theory implies that real estate prices were doing what? during the 1920s.

____ 38. In 1986, OPEC countries increased their production of oil. This caused

____ 39. Economists who think supply-side policy is more effective, focus on

_____ 40. A rapid expansion of the money supply by the Federal Reserve System has what effects?

____ 41. Refer to Figure. Which of the following would cause the aggregate demand curve to shift from AD1 to AD2?

____ 42. If technological change shifts the long-run aggregate supply curve to the right, it will also shift the short-run Phillips curve? AS? and the long-run Phillips curve to the right or left?

____ 43.Which of the following could the government do to decrease the costs of inflation without lowering the inflation rate?

____ 44. A reduction in the tax rate on income from saving would

____ 45. The aggregate production function is

____ 46. The money you have invested is continuously growing at a rate of 7 percent. In 20 years, the amount will

____ 47. Expansionary demand-side policy does what?

____ 48. A recession is declared when during several months the economy has done what?