Macroeconomics Questions

If the marginal propensity to consume is .75 then a $100 increase in investment will result in a maximum increase in equilibrium rGDP of-

(Will be a chart on test) When does dissaving occur?

An increase in spending in an economy will cause a multiplied increase in gross domestic product because-

Assume that the aggregate supply curve is upward sloping. If both aggregate supply and aggregate demand increase, what will happen to the equilibrium output and price level?

Suppose country A is experiencing high inflation relative to country B, which is enjoying steady growth with a stable price level. Which of the following would occur in the foreign exchange market?

If the velocity of money is constant and the aggregate supply curve is vertical, a doubling of the money supply would most likely result in a doubling of what?

Increases in the real per capita income of a country are most closely associated with increases in-

Which of the following policies, if appropriately sized, would provide expansion during a recession with the smallest change in interest rates?

If wages are sticky, which of the following policies will be the most effective in raising real gross domestic product to the full employment level?

An increase in which of the following will most likely increase productivity?

Which of the following actions by the federal reserve of the US will increase the money supply?

If the production of technology of a good improves and at the same time the number of consumers willing and able to buy in the good in the market increases, what will happen?

Inflation occurs when there is a sustained increase in-

Assume the public holds part of its money in cash and the rest in checking accounts. If the central bank lowers the reserve requirement from 16%-8%, the money supply will-

An increase what would result in an increase in aggregate supply?

If the economy is in a severe recession, which policy action is the most appropriate?

In the circular flow diagram of a market economy, which of the following supplies the factors of production?

How will a contraction in the money supply most likely change nominal interest rate and aggregate demand in the short run?

relationship between nominal GDP, real GDP and the GDP deflator

Demand for Goodswith some simplyfied assumtion --> new equation