ECON 1010 Study Guide - Midterm Guide: Aggregate Supply, Severance Package, Tax Rate

174 views9 pages

16 Oct 2018

School

Department

Course

Professor

For unlimited access to Study Guides, a Grade+ subscription is required.

6. To study the macroeconomy we must combined prices and quantities generated in single-product markets into broad aggregates.

a)	True
b)	False

7. An economist who favored expanded government would recommend:

a)	tax cuts during recession and tax increases during inflation
b)	tax increases during recession and tax cuts during inflation.
c)	tax cuts during both recession and inflation
d)	increases in government spending during a recession and tax increases during inflation.
e)	tax cuts during recessions and reduction in government spending during inflation.

8. If Government tax revenue exceeds Government spending the result of the budget is

9. Which of the following statements is true?

a)	In the US economy, the net export sector is positive.
b)	Aggregate demand is the sum of total output produced by all firms in the US.
c)	The aggregate supply curve is vertical if the price level is equal to the per-unit cost of production
d)	Aggregate production sums up the four major components C+I+G+Xn in the US economy.
e)	Government spending is the largest component of aggregate demand.

10. Which of the following statements is true?

	a) When unemployment is rising then real GDP is rising.
b)	The required reserve ratio is a tool used by the government to control the demand for money.
c)	The four components of aggregate supply are the same as aggregate demand.
d)	when an imported resource such as oil has decreased that is an increase in aggregate demand.
e)	The four components of aggregate demand---Households, Business, Government, and Net Exports.

Get access