Macroeconomics Questions

Figure 8.6.The MPS for this saving function is

The Jackson Tool Company manufactures only tools. In 2016 Jackson Tools manufactured 20,000 tools, but sold 21,000 tools. In 2016 Jackson Tools' change in inventory was

Table 8.1 The equation for the aggregate consumption function is

Figure 8.2 Positive saving occurs along the line segment...

Table 8.1At an aggregate income level of $100, aggregate saving would be

Assume there is no government or foreign sector. If the MPS is 0.2, a $40 billion decrease in planned investment will cause aggregate output to decrease by

As the MPS decreases, the multiplier will

Assume that in Scandia, planned investment is $80 billion but actual investment is $60 billion. Unplanned inventory investment is

Suppose a country's government increases the allowable deduction for individual retirement accounts per person. Holding all other influences constant, how would this policy action affect the country's loanable funds market, its production possibilities curve, and its long-run aggregate supply (LRAS) curve?

Assume policy makers increased spending and cut taxes to stimulate the economy. If the government's budget was initially in balance, which of the following will occur?

Which of the following terms describes the adverse effect that results when private sector investment spending competes with government deficit financing?

Which of the following policies will most likely promote long-run economic growth?

Assume the economy is in long-run equilibrium. A decrease in net exports will result in which of the following in the short run?

How will a nation's production possibilities curve (PPC) and long-run aggregate supply (LRAS) curve change as a result of an increase in both the labor force and productivity?

If tax revenues are less than the total of government spending plus government transfer payments, which of the following will happen?

Assume an economy is in long-run equilibrium and the central bank engages in an expansionary monetary policy for a prolonged time period. If the velocity of money is constant, which of the following is true according to the quantity theory of money?

Suppose that an economy with flexible wages and prices is in long-run equilibrium when the central bank contracts the money supply. What is the long-run effect on real output in the economy?

To reduce the size of a country's national debt, a government could potentially take all of the following actions EXCEPT

If economic growth through investment in the economy's infrastructure is desirable, which of the following policies will most likely achieve this objective?

Which of the following changes is most likely to cause economic growth?