ECO/372 Week 5 Principles of Macroeconomics
Everything listed for Week 1 below is included in this purchase!
Major Debates over Macroeconomic Policy
Option #1 - Word Count: 1,514 words!
Option #2 - Word Count: 1,163 words!
Option #3 - Word Count: 1,186 words!
Option #4 - Word Count: 2,219 words!
Option #5 - Word Count: 1,299 words!
Option #6 - Word Count: 1,217 words!
Option #7 - Word Count: 1,127 words!
This week requires the student to address six unresolved issues in macroeconomics, each of which is central to current political debates. Students are required to use information and tools that they have accumulated in their study of the text and evaluate both sides of those issues, determine which side they can support for each issue, and defend their positions.
Assignment Steps
Select two subjects from the following list of topics and write a 1,050-
word analysis:
• Active monetary and fiscal policy
• Increased government spending to fight recessions
• Reducing federal government's discretionary powers
• Zero-inflation target
• Balanced government budget
• Tax incentives for saving
Evaluate both the advocates' position and the critics' position.
Determine which position you support and defend your position.
Cite a minimum of 3 peer-reviewed sources not including your textbook.
Format consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment.
Final Examination
(3 Different Final Exams with Correct Answers Included)
Included 3 Different Final Exams for this class!
NOTE: Questions may be in a different order, but they should all be included.
Complete the Final Examination. You are allowed one attempt to
complete the examination, which is timed and must be completed in 3
hours. Results are auto graded and sent to your instructor.
Final Exam 2018 / 2019 Version!
- Martha lends $200 to a friend who promises to return it after a year. Instead of lending it to her friend, Martha could have put the money in a bank where she could have earned an interest rate of 2 percent per annum. Martha’s opportunity cost of lending the money is _____.
- The exhibit given below shows the short-run aggregate demand and supply curves in an economy, AD1 and AS1, and the long-run aggregate supply curve, LRAS. The economy was initially in equilibrium when there was a decrease in aggregate demand, causing a shift of the aggregate demand curve from AD1 to AD2. Which of the following is true in this case?
- Suppose an economy is in long-run equilibrium. An increase in consumption expenditure will:
- In the long run, a higher saving rate:
- Suppose the net foreign investment in Italy is positive. This implies that:
- The circular-flow diagram shows that:
- The table given below shows the total amount of spending in the country of Mesodonia. Mesodonia’s gross domestic product is:
- The country of Merilya exported goods and services worth $1.2 million and imported goods and services worth $2.7 million. The net exports of the country was _____.
- Suppose the Fed purchases government bonds through open-market operations. All other things remaining equal, this is likely to:
- A rise in the price of bacon from $14 per pound to $16 per pound will reduce the purchasing power of the dollar by:
- A difference between commodity money and fiat money is that:
- Suppose the net capital outflow from Zenovia is negative. This implies that:
- There is an increase in human capital when _____.
- After retirement, Molly deposits $500,000 in a local bank in Merrina. At an interest rate of 4 percent, she will receive approximately _____ after 3 years.
- Ruth wants to calculate the present value of a sum of money that she will receive after the demise of her grandparents. To calculate the present value, she should use the:
- The buyers and sellers in the country of Perylia use corn as a medium of exchange. This means that:
- Scarcity occurs because of:
- The Phillips curve shows:
- Ephlon Inc., an Italian bike manufacturer, opens a factory in the United States. This is an example of:
- Jack is an out-of-work sculptor. He has been looking for a job for the last two years. Unable to find any, he has given up his job search. Which of the following is true in this case?
- Suppose the central bank of a country undertakes an expansionary monetary policy. Which of the following is most likely to be the effect of such a policy, all other things remaining unchanged?
- Following the unexpected good performance of Leathex, all its employees were given a one-time bonus. This consequently led to a rightward shift of the demand curve for shoes manufactured by the company and a leftward shift of the demand curve for socks. This shows that shoes are:
- A higher interest rate in a country:
- If the price level in an economy is 120 and the equilibrium price level is 100, _____.
- A recent survey showed the health benefits of cranberry juice for treating heart and other respiratory disorders. The exhibit below shows that the initial demand curve for cranberry juice = is D1. Which of the following is likely to be a consequence of the publication of the survey?
- Keynesian economists believe that when an economy is in a recession, the government should:
- The Marions purchased a Persian rug worth $5,000 from an Iranian textile mill. Everything else remaining unchanged, this will:
- As more capital is used in the production process, the amount of other inputs being fixed, the production function becomes:
- The natural rate of unemployment in a country is 4 percent. This implies that:
- Which of the following is true according to the circular-flow diagram?
Final Exam Set #2
1. Suppose farmers can use their land to grow either wheat or corn. The law of supply predicts that an increase in the market price of wheat will cause:
2. According to Keynes, market economies:
3. If banks hold excess reserves whereas before they did not, the money multiplier:
4. The law of demand states that quantity demanded of a good is inversely related to the price of that good. Therefore, as the price of a good goes:
5. What would make foreigners want to buy more from the United States?
6. Between 2007 and 2009, the U.S. unemployment rate rose from under 5 percent to over 8 percent. A Keynesian economist would most likely blame this increase in unemployment on:
7. Macroeconomics is:
8. Which of the following is the path through which contractionary monetary policy works?
9. Quotas and tariffs can:
10. According to the Classical growth model, an economy that increases its saving will grow:
11. If a country wants to prevent its exchange rates from falling, it could:
12. If income increases more rapidly than expected, then:
13. Which of the following types of unemployment is considered to be the most controllable through demand-side macroeconomic policy?
14. Using the expenditure approach, gross domestic product equals:
15. Which of the following topics is best characterized as a macroeconomic issue?
16. In which of the following situations is a budget surplus most likely to occur?
17. How do investment in technology and investment in capital differ?
18. Suppose that consumer spending is expected to decrease in the near future. If output is at potential output, which of the following policies is most appropriate according to the AS/AD model?
19. Central banks are responsible for:
20. The interest rate is the price paid for use of a:
21. The largest expenditure component of GDP is:
22. The government of Crossland wants to influence its exchange rate. It will do so by buying and selling:
23. Globalization that allows governments to pursue expansionary policies can be dangerous because it can lead to:
24. The depreciation of currency will:
25. When interest rates rise, people are:
26. As a country develops economically, what changes usually take place in the goods it exports?
27. News Story: Workers at a car-manufacturing plant in Flint, Michigan are laid off because the economy is weak and GM cars aren't selling well. GM isn't sure when the plant will reopen. What type of unemployment describes the workers' situation?
28. If the reserve requirement is 20 percent, and banks keep no excess reserves, an increase in an initial inflow of $100 into the banking system will cause an increase in the money supply of:
29. According to Keynes, why might deflation create problems for an economy?
30. U.S. imports involve an:
Final Exam Set #3
1. News Story: Workers at a car-manufacturing plant in Flint, Michigan are laid off because the economy is weak and GM cars aren't selling well. GM isn't sure when the plant will reopen. What type of unemployment describes the workers' situation?
2. Globalization that allows governments to pursue expansionary policies can be dangerous because it can lead to:
3. Macroeconomics is:
4. Which of the following types of unemployment is considered to be the most controllable through demand-side macroeconomic policy?
5. If banks hold excess reserves whereas before they did not, the money multiplier:
6. Using the expenditure approach, gross domestic product equals:
7. How do investment in technology and investment in capital differ?
8. The interest rate is the price paid for use of a:
9. If the reserve requirement is 20 percent, and banks keep no excess reserves, an increase in an initial inflow of $100 into the banking system will cause an increase in the money supply of:
10. Suppose farmers can use their land to grown either wheat or corn. The law of supply predicts that an increase in the market price of wheat will cause:
11. According to Keynes, why might deflation create problems for an economy?
12. When interest rates rise, people are:
13. According to the Classical growth model, an economy that increases its saving will grow:
14. Suppose that consumer spending is expected to decrease in the near future. If output is at potential output, which of the following policies is most appropriate according to the AS/AD model?
15. Which of the following topics is best characterized as a macroeconomic issue?
16. If income increases more rapidly than expected, then:
17. In which of the following situations is a budget surplus most likely to occur?
18. The largest expenditure component of GDP is:
19. Which of the following is the path through which contractionary monetary policy works?
20. As a country develops economically, what changes usually take place in the goods it exports?
21. What would make foreigners want to buy more from the United States?
22. The depreciation of currency will:
23. The government of Crossland wants to influence its exchange rate. It will do so by buying and selling:
24. If a country wants to prevent its exchange rates from falling, it could:
25. Central banks are responsible for:
26. Quotas and tariffs can:
27. Between 2007 and 2009, the U.S. unemployment rate rose from under 5 percent to over 8 percent. A Keynesian economist would most likely blame this increase in unemployment on:
28. U.S. imports involve an:
29. The law of demand states that quantity demanded of a good is inversely related to the price of that good. Therefore, as the price of a good goes:
30. According to Keynes, market economies:
Final Exam Set #4
1. the market where business sell goods and services to households and the government is called
2. Real gross domestic product is best defined as
3. Underemployment includes
4. The bureau of economic analysis is responsible for which of the following
5. The federal reserve provides which of the following data
6. Consider if the government instituted a 10% income tax surcharge. In terms of the AS/AD model this change should have
7. The largest source of household income is in the U.S. is obtainedstock dividends
8. If the depreciation of a country’s currency increases it aggregate expenditures by 20, the AD curve will
9. Aggregate demand management policies are designed most directly to
10. Suppose that consumer spending is expected to decrease in the near future. If output is at potential output, which of the following policies is most appropriate according to the AS/AD model
11. According to Keynes, market economies
12. The laissez-faire policy prescription to eliminate unemployment was to
13. In the AS/AD model, an expansionary monetary policy has the greatest effect on the price level when it
14. The Federal funds rate
15. What tool of monetary policy will the Federal Reserve use to increase the federal funds rate from 1% to 1.25%?
16. If the Federal Reserve increases the required reserves, financial institutions will likely lend out
17. Suppose the money multiplier in the U.S. is 3. Suppose further that if the Federal Reserve changes the discount rate by 1 percentage point, banks change their reserves by 300. To increase the money supply by 2700 the Federal Reserve should
18. If the Federal Reserve reduced its reserve requirement from 6.5 percent to 5 percent. This policy would most likely
19. A country can have a trade deficit as long as it can
20. In the short run, a trade deficit allows more consumption, but in the long run, a trade deficit is a problem because
21. Considering an economy with a current trade deficit and considering only the direct effect on income, an expansionary monetary policy tends to
22. The balance of trade measures the
23. When a country runs a trade deficit, it does so by:
24. Expansionary fiscal policy tends to
25. In considering the net effect of expansionary fiscal policy on the trade deficit, the
26. If U.S. interest rates fall relative to Japanese interest rates and Japanese inflation falls relative to U.S. inflation, then the
27. Expansionary monetary policy tends to
28. The U.S. has limits on Chinese textile imports. Such limits are an example of
29. Duties imposed by the U.S. government on imported Chinese frozen and canned shrimp are an example of
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