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Suck it in guys.... theres a couple more left. ( who has a 100 QUESTION test anyways???) First though, I seriously cant thank you guys ( Smootsmack/That Guy) enough for the help, you're really helping me out bigtime, and anyone else who tried but just dosent know. I really really appreciate the time, so thank you.
The Final Instalment in GMANC711's Economics test.....
23. Suppose Equiliburum GDP is currently 800 Billion and investment is 100 billion. If an increase in the interest rate reduced investment from 100 billion to 75 billlion, and the mpc is .8, the new level of Equiliburm is...
a. 500
b. 600
c. 675
d. 775
e. 800 (all in billions)
25. Assume that an economy's real GDP muliplier is 4. If this economy is in equilibrium at 2,000 billion, then which one of the following actions will bring it to a full employment equiliburm of 1,500 billion?
a. 500 billion spending cut
b. 500 billion spending increase
c. 125 billion spending cut
d. 125 billion spending increase
e. 2,000 billion spending cut
36. The full emplyment level of real GDP can be represented on an aggregate suplly and demand diagram as a:
a. vertical line
b. upward-sloping line
c. horixontal line
d. downard sloping line ( I think its A, but I'm not sure)
40. Suppose the economy is on the classical range of the aggregat supply curve, and has a problem with inflation. According to the Keynesian theroy, which of the following is an appropirate discretionary fiscal policy to use in this situation?
a. A reduction in the money supply
b. Less gov regulation
c. increase in federal spending
d. higher taxes
Well, *I THINK* that is the end; as I have awnsers for most of the other problems. Once again, I cant thank you guys enough for the help with this. Matty, we should start a hw thread. So far Joe Crisp is the only one to help get me an A in a class, so if Smootsmack/Thatguy are succeful, we may have a competition brewing, LOL. Thanks guys.
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