Macroeconomic Analysis Activity 1 Assessment

Question 1 Correct In the simple Keynesian model, equilibrium aggregate output is determined by Mark 1.00 out of 1.00 Select one: a. aggregate demand. Correct b. the price level. c. aggregate supply. d. the naonal demand for labor. Your answer is correct. The correct answer is: aggregate demand. Question 2 Correct Under Keynesian analysis, aggregate demand can be wrien as Mark 1.00 out of 1.00 Select one: a. Yad = C + I + G + NX. b. Yad = C + I - G - NX. c. Yad = C - I - G - NX. d. Yad= C + I + G - NX. Your answer is correct. The correct answer is: Yad = C + I + G + NX. Correct Question 3 Correct If the consumpon funcon is expressed as C = a + mpc × YD, then "mpc" represents Mark 1.00 out of 1.00 Select one: a. the marginal propensity to consume. Correct b. the expenditure mulplier. c. autonomous consumer expenditure. d. disposable income. Your answer is correct. The correct answer is: the marginal propensity to consume. Question 4 Correct Mark 1.00 out of 1.00 Everything else held constant, if total consumpon increases from $600 to $800 because of an increase of disposable income of $400, then the mpc is equal to Select one: a. 0.4 b. 0.6. c. 0.5. Correct d. 0.2. Your answer is correct. The correct answer is: 0.5. Question 5 Correct Mark 1.00 out of 1.00 A fall in inventories is synonymous with ________ investment. Select one: a. negave inventory b. negave fixed c. posive fixed d. posive inventory Your answer is correct. The correct answer is: nega e in entor Correct negave inventory Question 6 Correct If unplanned investment is negave, firms will ________ producon and output will ________. Mark 1.00 out of 1.00 Select one: a. cut; fall b. increase; rise Correct c. increase; fall d. cut; rise Your answer is correct. The correct answer is: increase; rise Question 7 Correct Mark 1.00 out of 1.00 As long as output is above the equilibrium level, unplanned inventory investment will remain ________ and firms will connue to ________ producon. Select one: a. negave; raise b. negave; lower c. negave; raise d. posive; lower Correct Your answer is correct. The correct answer is: posive; lower Question 8 Correct Mark 1.00 out of 1.00 If actual output is below equilibrium, firms will ________ output to keep from ________ inventories. Select one: a. increase; depleng b. decrease; depleng c. increase; accumulang d. decrease; accumulang Your answer is correct. The correct answer is: increase; depleng Correct increase; depleng Question 9 Correct Mark 1.00 out of 1.00 Keynes believed that changes in autonomous spending were dominated by unstable fluctuaons in ________, which are influenced by emoonal waves of opmism and pessimism--factors he referred to as "animal spirits." Select one: a. planned investment spending Correct b. actual investment spending c. autonomous consumer expenditures d. unplanned investment spending Your answer is correct. The correct answer is: planned investment spending Question 10 Correct Mark 1.00 out of 1.00 Declines in planned investment spending that produce high unemployment can be offset by raising Select one: a. business confidence. b. taxes. c. government spending. Correct d. consumer confidence. Your answer is correct. The correct answer is: government spending. Question 11 Correct Mark 1.00 out of 1.00 If mulplier is 10 and government spending increases by $100, equilibrium output will change by Select one: a. -$100. b. $100. c. -$1,000. d. $1,000. Correct Your answer is correct. The correct answer is: $1 000 $1,000. Question 12 Correct An increase in interest rates Mark 1.00 out of 1.00 Select one: a. increases the value of the dollar, net exports, and equilibrium output. b. increases the value of the dollar, reducing net exports and equilibrium output. c. reduces the value of the dollar, increasing net exports and equilibrium output. d. reduces the value of the dollar, net exports, and equilibrium output. Your answer is correct. The correct answer is: increases the value of the dollar, reducing net exports and equilibrium output. Question 13 Correct A decrease in interest rates Mark 1.00 out of 1.00 Select one: a. increases the value of the dollar, net exports, and equilibrium output. b. reduces the value of the dollar, net exports, and equilibrium output. c. increases the value of the dollar, reducing net exports and equilibrium output. d. reduces the value of the dollar, increasing net exports and equilibrium output. Correct Your answer is correct. The correct answer is: reduces the value of the dollar, increasing net exports and equilibrium output. Question 14 Correct The ________ describes points for which the goods market is in equilibrium. Mark 1.00 out of 1.00 Select one: a. LM curve b. investment schedule c. IS curve Correct d. consumpon funcon Your answer is correct. Correct The correct answer is: IS curve Question 15 Correct Mark 1.00 out of 1.00 In the Keynesian cross diagram, an increase in autonomous consumer expenditure causes AD to shi ________ and the equilibrium level of aggregate output to ________. Select one: a. down; fall b. up; rise Correct c. down; rise d. up; fall Your answer is correct. The correct answer is: up; rise Question 16 Correct Mark 1.00 out of 1.00 Changes in the interest rate affect equilibrium level of output, but this change Select one: a. merely causes a movement along the IS curve and not a shift. Correct b. is crowded out by higher government spending. c. is crowded out by higher taxes. d. is crowded out by lower consumer expenditures. Your answer is correct. The correct answer is: merely causes a movement along the IS curve and not a shift. Question 17 Correct Mark 1.00 out of 1.00 In the Keynesian cross diagram, an increase in investment spending causes AD funcon to shi ________, the equilibrium level of aggregate output to rise, and the IS curve to shi to the ________, Select one: a. down; le b. up; right Correct c. up; le d. down; right Your answer is correct. The correct answer is: up; right Question 18 Correct Mark 1.00 out of 1.00 A decline in taxes ________ consumer expenditure and shis the ________ curve to the ________ Select one: a. lowers; LM; le b. lowers; IS; le c. raises; LM; right d. raises; IS; right Correct Your answer is correct. The correct answer is: raises; IS; right Question 19 Correct Mark 1.00 out of 1.00 Demand of foreign goods ________ net exports of U.S and causes its IS curve to shi ________ Select one: a. decreases; le b. increases; right c. decreases; right d. increases; le Your answer is correct. The correct answer is: decreases; le Correct decreases; le Question 20 Correct Which of the following does not shi the IS curve? Mark 1.00 out of 1.00 Select one: a. An increase in government spending. b. An increase in autonomous consumpon. c. An increase in autonomous consumpon. d. A fall in the interest rate. Your answer is correct. The correct answer is: A fall in the interest rate. Correct