Economy with government and foreign sectors

Assignment Help Macroeconomics

Reference no: EM132094468

Question 1

Which one of the following statement is incorrect about the Monetarist school of macro-economics

Select one:

a. An increase in money supply influences nominal GDP and not real GDP

b. Change in the money supply has a real effect in the short-run and has not effect in the long-run

c. Change in the level of the money supply will not have any effect on the private sector

d. A change in the quantity of money in the economy is a good indicator of the monetary policy position

Question 2

Which one of the following statement is not true about an economy with government and foreign sectors

Select one:

a. Income is determined by aggregate spending of consumer's consumption, investors spending on factors of productions, government spending on infrastructures, and national spending on imports.

b. An increase in tax affects income indirectly and reduces disposable income

c. Imports and exports are leakages from the economy

d. Leakage in the form of tax reduces the size of multiplier

Question 3

Which one of the following statement is not true about inflation

Select one:

a. It can be measured by the consumers price index

b. It refers an increase in the general price in the economy

c. It can be measured by the producers price index

d. It refers to decline prices across all sectors of the economy

Question 4
Which one of the following statement is true consumption function?

Select one:

a. Marginal propensity to consume measures the slope of the consumption curve.

b. Autonomous consumption is a type of consumption that is highly linked to the level of income that the consumer gets.

c. Consumption function shows the relationship between price expectations and aggregate consumption.

d. There is a negative relationship between consumption and income.

Question 5

Which one of the following statements is correct about fiscal policy?

Select one:

a. It is highly involved in issuing T-bills and adjusting the rate of interest

b. It is a policy instrument that enables not to reach the point of full employment in the economy

c. Government spending and tax rates are the main policy instruments

d. Like the monetary policy it is not conducted by government but it is conducted by an independent institution

Reference no: EM132094468

Questions Cloud

How you would utilize positive or negative reinforcement : As you continue your consulting role, the next task is to deliver a professional development program to the CEO of your chosen organization.

The uncorrected misstatements are material : management has taken the position that the misstatements are not material and (2) the auditor’s argument is that the uncorrected misstatements are material.

Description of the social media marketing activities : Identification of the target audience. Description of the social media marketing activities.

Explain how politics and power-play may have influenced : Make recommendations that support how the study of power and politics could influence leadership behavior and improve the organization's culture.

Economy with government and foreign sectors : An increase in money supply influences nominal GDP and not real GDP - change in the quantity of money in the economy is a good indicator of the monetary policy

Finding your motivation requires little thought-reflection : Finding your motivation requires a little thought and reflection. What habits or strategies you use or could use to stay motivated.

Define decision-making processes in counseling profession : As a counselor, you will be making decisions on how to select evidence-based treatments. In your essay, demonstrate the decision-making process.

Research and outline the steps required : Research and outline the steps required to create and deploy an ad, using both platforms.

Identify accreditation requirements for the organization : Identify accreditation requirements for the organization, and resources needed to maintain accreditation.

User Account

All Pages