Which of the following questions have a macroeconomic focus? A) How does a consumer choose which goods to consume given his/her income? B) How does demand for a good change when there is an increase in a consumer’s income? C) How does a monopolist decide how much to produce? D) What is the unemployment rate […]
Date: September 2nd, 2020
The transactions demand for money is the demand to hold money to A) make regular, expected purchases. B) purchase bonds when interest rates increase. C) store one’s wealth. D) meet unplanned expenditures. ANSWER A
Date: September 2nd, 2020
What is meant by demographic transition? How is it responsible for modern growth? What will be an ideal response? ANSWER Demographic transition refers to the decline in fertility and number of children per family that many societies undergo as they transition from agriculture to industry. Demographic transition is a central ingredient to modern growth […]
Date: September 2nd, 2020
Assuming all else equal, the slope of the credit supply curve implies that: A) as the inflation rate increases, the quantity of credit supplied increases. B) as the real interest rate decreases, the quantity of credit supplied increases. C) as the inflation rate decreases, the quantity of credit supplied increases. D) as the real interest […]
Date: September 2nd, 2020
The U.S. economy has had persistent inflation in recent decades. A possible explanation for the inflation is that A) there have been decreases in the growth rate while aggregate demand has remained unchanged. B) growth in aggregate demand has been greater than growth in aggregate supply. C) there have been decreases in aggregate demand while […]
Date: September 2nd, 2020
Assuming all else equal, an increase in the real interest rate will cause: A) a leftward shift of the credit supply curve. B) a rightward shift of the credit supply curve. C) a downward movement along the credit supply curve. D) an upward movement along the credit supply curve. ANSWER D
Date: September 2nd, 2020
Which of the following questions can be answered using the concepts of macroeconomics? A) What is the effect of an increase in price on the supply of a good? B) Why do some firms produce differentiated goods? C) What is the difference between a public good and a private good? D) Why does the rate […]
Date: September 2nd, 2020
If the Fed reduces the supply of bank reserves, ________. A) investment increases B) consumption increases C) the federal funds rate increases D) the federal funds rate falls ANSWER C
Date: September 2nd, 2020
What was the Industrial Revolution? How did it contribute to modern economic growth? What will be an ideal response? ANSWER Industrial Revolution is the term used for describing the series of innovation and their implementation in the production process that started to take place at the end of the 18th century in Britain. The […]
Date: September 2nd, 2020
Refer to the above figure. If the price level is 80 A) the total planned real expenditures by individuals, businesses, and the government are less than total planned production by firms. B) the aggregate demand curve will automatically shift leading to a stable equilibrium. C) the economy will have economic growth and the new equilibrium […]
Date: September 2nd, 2020
