ECO 372 FINAL EXAMS

ECO 372 FINAL EXAMS
1) The largest source of household income in the
U.S. is obtained from
2) The market where business sell goods and services
to households and the government is called the
3) Real gross domestic product is best defined as
4) Underemployment includes people
5) The Bureau of Economic Analysis is responsible
for which of the following?
6) The Federal Reserve provides which of the
following data?
7) Consider if the government instituted a 10
percent income tax surcharge. In terms of the AS/AD model, this change should
have
8) If the depreciation of a country’s currency
increases its aggregate expenditures by 20, the AD curve will
9) Aggregate demand management policies are designed
most directly to
10) Suppose that consumer spending is expected to
decrease in the near future. If output is at potential output, which of the
following policies is most appropriate according to the AS/AD model?
11) According to Keynes, market economies
12) The laissez-faire policy prescription to eliminate
unemployment was to
13) In the AS/AD model, an expansionary monetary
policy has the greatest effect on the price level when it
14) The Federal funds rate
15) What tool of monetary policy will the Federal
Reserve use to increase the federal funds rate from 1% to 1.25%?
16) If the Federal Reserve increases the required
reserves, financial institutions will likely lend out17) Suppose the money multiplier in the U.S. is 3.
Suppose further that if the Federal Reserve changes the discount rate by 1
percentage point, banks change their reserves by 300. To increase the money
supply by 2700 the Federal Reserve should
18) If the Federal Reserve reduced its reserve
requirement from 6.5 percent to 5 percent. This policy would most likely
20) A weaker dollar
21) In the short run, a trade deficit allows more
consumption, but in the long run, a trade deficit is a problem because
22) Considering an economy with a current trade
deficit and considering only the direct effect on income, an expansionary
monetary policy tends to
23) The balance of trade measures the
24) When a country runs a trade deficit, it does so
by:
25) Expansionary fiscal policy tends to
26) In considering the net effect of expansionary
fiscal policy on the trade deficit, the
27) If U.S. interest rates fall relative to Japanese
interest rates and Japanese inflation falls relative to U.S. inflation, then
the
28) Expansionary monetary policy tends to
29) The U.S. has limits on Chinese textile imports.
Such limits are an example of
30) Duties imposed by the U.S. government on
imported Chinese frozen and canned shrimp are an example of