Macroeconomics Questions

Automatic stabilizers "lean against the prevailing wind" of the business cycle because

The Laffer curve belongs to which of the following schools of economic thought?

The net exports effect is the ______________ relationship between net exports and the price level of an economy.

Mathematically, the value of the tax multiplier in terms of the marginal propensity to consume (MPC) is given by the formula

Which of the following are beliefs of classical theory

The idea that higher prices reduce the purchasing power of financial assets and lead to less consumption and more saving is known as the

Currently, total government expenditures in the United States is approximately

as the economy moves to the right in Exhibit 14.16,along the upward shifting aggregate supply curve, the

The shift from AS1 to AS2 in Exhibit 14.15 could be caused by a (an)

Which of the following is an example of expansionary fiscal policy?

A tax multiplier equal to −4.30 would imply that a $100 tax increase would lead to a

as the aggregate demand curve shifts from AD1 to AD2 in Exhibit 14.16, the economy experiences

When the economy enters a recession, automatic stabilizers create

The real balances effect is the impact of real GDP caused by the ______________ relationship the price level and the real value of financial assets.

The aggregate demand curve shows how real GDP purchased varies with changes in

The real balances effect occurs because a higher price level will reduce the real value of people's

Which of the following is not a component of the aggregate demand curve?

Refer to Exhibit 6-2. The labor force participation rate in year 1 is

Of the total amount of the world's GDP, approximately what percentage comes from developing countries?

If an economy has grown 11% over a four-year period, what is its annual growth?