Macro Economics Ch 10,11,12,13 (Test 3)

In: Business and Management

Submitted By consuela
Words 2684
Pages 11
THIS SHOWS THE ANSWERS I PICKED AND THE CORRECT ANSWER I MADE AN A.

MAKE SURE YOU CHOSE THE CORRECT ANSWER NOT THE SELECTED ANSWER!!!!
I HOPE THIS HELPS YOU OUT THERE
(JUNE-2013)

Question 1 .1 out of 1 points

If the price level rises,Answer
Selected Answer: e.
the aggregate expenditures line shifts downward; the economy moves upward along the aggregate demand curve
Correct Answer: e.
the aggregate expenditures line shifts downward; the economy moves upward along the aggregate demand curve

. Question 2 .1 out of 1 points

If autonomous investment expenditures decline because of higher interest ratesAnswer
Selected Answer: d.
aggregate demand increases
Correct Answer: d.
aggregate demand increases

. Question 3 .1 out of 1 points

In an economy without a government and without international transactions, aggregate expenditure at each level of income is equal toAnswer
Selected Answer: c.
consumption plus planned investment
Correct Answer: c.
consumption plus planned investment

. Question 4 .1 out of 1 points

A decrease in the price level will have which of the following effects?Answer
Selected Answer: d.
There will be downward movement along a particular aggregate demand curve.
Correct Answer: d.
There will be downward movement along a particular aggregate demand curve.

. Question 5 .1 out of 1 points

If people spend 2/3 of any extra income they receive, new autonomous spending of $10 causes equilibrium to increase byAnswer
Selected Answer: a.
$30.00
Correct Answer: a.
$30.00

. Question 6 .1 out of 1 points

If the marginal propensity to consume in your classmate's nation is 3/5 and the marginal propensity to save in your country is 1/10, which of the following must be true?Answer
Selected Answer: b.
The spending multiplier is smaller…...

Similar Documents

Macro Economic Variables

... and this is also one reason for draining of foreign exchange reserves. Another reason is, the high rate of inflation, in our economy, which is now around 9%, one of the highest rates in the world. It erodes the value of rupee and thus calls for continuous downward adjustment against the dollar for maintaining the proper parity value. Our Foreign Exchange reserves are almost static around $300 billion since last 3 years. This is a reflection on our inability to increase our net earnings in dollar terms. The recent downgrading of India by Standard & Poor international rating agency has resulted in flight of dollars by FII’s who quit from the share market thus leading to a further shortage of dollars. Current Account to GDP India reported a Current Account deficit of 3.70 percent of the country's Gross Domestic Product in 2011. Historically, from 1980 until 2011, India Current Account to GDP averaged -1.33% reaching an all time high of 1.50% in December of 2003 and a record low of -3.70% in December of 2011. Sustainability of Indian Growth * The rise in GDP is due to the increase in expenses on medicines, drugs, liquor etc. This led to a negative GDP. * The statistics suggest that the difference between the rich and poor has increased hugely in last 20 years. * There is an unequal distribution of income in Indian Economy, the rich keep on getting richer and there is no comparable improvement in the condition of the poor. * Employment......

Words: 1114 - Pages: 5

Macro Test

...MACROECONOMICS NAME_____________ TEST 4 CHAPTERS 16,17,18,19 AND 20 Chapter 16 1) The idea of the ________ is that people make lifetime consumption plans. A) life-cycle theory of consumption B) invisible hand C) law of demand D) classical theory of investment ANSWER: ______________ 2) According to the life-cycle theory of consumption, people tend to consume ________ they earn during their early and later years. A) more than B) less than C) the same as D) an amount unrelated to what ANSWER: ______________ 3) The opportunity cost of leisure will rise if A) the wage rate increases. B) the wage rate decreases. C) nonlabor income increases. D) nonlabor income decreases. ANSWER: ______________ 4) A rise in the interest rate A) decreases the opportunity cost of consuming today. B) increases the opportunity cost of consuming in the future. C) increases the opportunity cost of consuming today. D) decreases the opportunity cost of consuming in the future. ANSWER: ______________ 5) Over time, spending on ________ is ʺsmootherʺ than spending on ________. A) durable goods; services B) nondurable goods; durable goods C) services; nondurable goods D) durable goods; service ANSWER: ______________ 6) The largest increase in the labor-force participation rate since 1950 is among A) prime-age men. B) teenagers over the age of 16. C) prime-age women. D) males in their 20s...

Words: 2675 - Pages: 11

Macro Economic Variable & Stock Return

... interest in India and Sri Lanka for the year 2002-2009 while also analyzing the impact of macro-economic variable on GDP growth in India vis-à-vis Sri Lanka. The econometrics tools i.e., Unit root test, Granger causality test, Cointegration test, Vector auto regression and Variance decomposition, and Variance Decomposition Analysis have been used for the analysis purpose. RESEARCH METHODOLOGY Problem Statement To study the relationship between various macroeconomic variables & stock prices in India. Objectives: 1. To find the relationship between macroeconomic variables & stock prices. 2. To find the degree of relationship in short run. 3. To identify the long run equilibrium relationship. Research Design: For the study Descriptive Research Design will be used as the study is conducted to identify the kind of relation that exists between macroeconomic variables & stock returns. Data & Source of Data: For the study following macro economic variables will be used: • Prime Lending Rate as a indicator of interest rates • Exchange Rate • Consumer Price Index as a measure of Inflation • Foreign Exchange Reserves excluding special drawing rights(SDR) • Index of Industrial Production • M3 as a measure of money supply • S&P CNX as an indicator for stock market Secondary data will be used from the websites of RBI, NSE, money control, ministry of finance, etc. Data Collection Period: Data will be collected for the period of 14......

Words: 4182 - Pages: 17

Summary Ch 3

...Topic Report Chapter 3 Communicating in a World of Diversity This chapter is explaining to us how communication is diverse all over the world. The first thing the chapter talks about is the opportunities in a global marketplace, which includes new customers, labor sources, and new possibilities for enhancement. The advantages of a Diverse Workforce connects you with customers in different parts of the world and extend you pool of talent, you get a broader range of views and ideas, and a better understanding of diverse, fragmented markets. Another thing they talk about is some challenges faced with intercultural communication like skills, traditions backgrounds, experiences, outlooks, and attitudes toward work; all which can affect communication in the workplace. For example, teams face the challenge of working together closely, and companies are challenged to co-exist peacefully with business partners and with the community as a whole. The way you communicate is deeply influenced by the culture in which you were raised.  The meaning of words, gestures, the importance of time and space, the rules of the human relationships- these and many others are defined by culture.  Your culture also influences the way you think, which naturally affects the way you communicate as both a sender and receiver. Another thing also discussed in this chapter are the negative cultural attitudes like Ethnocentrism and Stereotyping. Ethnocentrism means when a person is judging another......

Words: 321 - Pages: 2

Macro Economics Ch 10,11,12,13 (Test 3)

...THIS SHOWS THE ANSWERS I PICKED AND THE CORRECT ANSWER I MADE AN A. MAKE SURE YOU CHOSE THE CORRECT ANSWER NOT THE SELECTED ANSWER!!!! I HOPE THIS HELPS YOU OUT THERE (JUNE-2013) Question 1 .1 out of 1 points If the price level rises,Answer Selected Answer: e. the aggregate expenditures line shifts downward; the economy moves upward along the aggregate demand curve Correct Answer: e. the aggregate expenditures line shifts downward; the economy moves upward along the aggregate demand curve . Question 2 .1 out of 1 points If autonomous investment expenditures decline because of higher interest ratesAnswer Selected Answer: d. aggregate demand increases Correct Answer: d. aggregate demand increases . Question 3 .1 out of 1 points In an economy without a government and without international transactions, aggregate expenditure at each level of income is equal toAnswer Selected Answer: c. consumption plus planned investment Correct Answer: c. consumption plus planned investment . Question 4 .1 out of 1 points A decrease in the price level will have which of the following effects?Answer Selected Answer: d. There will be downward movement along a particular aggregate demand curve. Correct Answer: d. There will be downward movement along a particular aggregate demand curve. . Question 5 .1 out of 1 points If people spend 2/3 of any extra income they receive, new autonomous...

Words: 2684 - Pages: 11

Ch 3 Review

...Chapter 3 (REVIEW-Self study chapter) After studying this chapter, you should be able to: Understand basic accounting terminology. Explain double-entry rules. Explain how transactions affect the accounting equation. Identify the steps in the accounting cycle and the steps in the recording process. Explain the reasons for and prepare adjusting entries. Explain how the type of ownership structure affects the financial statements. Prepare closing entries and consider other matters relating to the closing process. Prepare a 10-column work sheet and financial statements. After studying Appendix 3A, you should be able to: Identify adjusting entries that may be reversed. THE ACCOUNTING INFORMATION SYSTEM The Accounting Information System Basic Terminology Event: The cause of changes of assets, liabilities, and equity Transaction: A transfer or exchange between two or more entities or parties Account: Where transactions are recorded - A separate account is used for each asset, liability, revenue, expense, gain, loss and capital (owner’s equity) Permanent accounts (or “real” accounts) * Asset, liability, and equity accounts * Appear on the balance sheet * Permanent accounts are not closed at year end Temporary accounts (or “nominal” accounts) * Revenue, expense, and dividend accounts * Revenue and expenses are on the income statement; dividends are on the statement of changes in shareholders equity...

Words: 1362 - Pages: 6

Macro Economic Focus

...%” (tradingeconomics, 2011) contributing to the rise in inflation. “The economy is gaining its footing. Real GDP grew 3 percent in 2010. I expect this to continue to increase, and GDP will grow between 3.5 and 4 percent in 2011,” Kahan said” (Thomton, 2011). The article “U.S. economy sending mixed signals,” addresses both the improvements and the remaining weaknesses within the economy. The article confirms a decline in the unemployment rate. Although it does remain excessively high above the optimal range it is making progress. “The U.S. created 75,000 jobs a month in 2010 and I expect that number to be 175,000-to-200,000 per month in 2011,” said Kahan. “That is not great, but it is an improvement” (Thomton, 2011). With the increasing success of the unemployment rate it is followed by an immediate setback from the increasing rate of inflation. To fix inflation, the cut government spending and raise taxes p.271 (top) this will reduce the budget deficit (reduce aggregate demand) Bibliography Schiller, B. (2009). Essentials of Economics 7E. New York, NY: McGraw-Hill/Irwin. Print. TradingEconomics.com, U.S. Bureau of Labor Statisitcs. (2011, March 4). “U.S. Economy Adds 192,000 Jobs in February.” Retrieved from: http://www.tradingeconomics.com/Economics/Unemployment-Rate.aspx?Symbol=USD TradingEconomics.com, U.S. Bureau of Labor Statisitcs. (2011, February 17). “U.S. Inflation Rises 1.6% in January.” Retrieved from:......

Words: 786 - Pages: 4

Patterson Ch. 3

...Chapter Three Federalism: Forging a Nation Chapter Outline I. Federalism: National and State Sovereignty A. The Argument for Federalism 1. Protecting Liberty 2. Moderating the Power of Government 3. Strengthening the Union B. The Powers of the Nation 1. Enumerated Powers 2. Implied Powers C. The Powers of the States II. Federalism in Historical Perspective A. An Indestructible Union (1789–1865) 1. The Nationalist View: McCulloch v. Maryland 2. The States’ Rights View: The Dred Scott Decision B. Dual Federalism and Laissez-Faire Capitalism (1865–1937) 1. The Fourteenth Amendment and State Discretion 2. Judicial Protection of Business 3. National Authority Prevails C. Toward National Citizenship III. Federalism Today A. Interdependency and Intergovernmental Relations B. Government Revenues and Intergovernmental Relations 1. Fiscal Federalism 2. Categorical and Block Grants C. Devolution 1. The Republican Revolution 2. Devolution, Judicial Style IV. The...

Words: 3398 - Pages: 14

Macro Economic Policies

...Problem: Decrease unemployment Fiscal and Monetary/ Short Run Policies (Demand-side policies): There is a range of policy measures a government may use to reduce unemployment, however, the choice of measures are influenced by the cause of the unemployment, the rate and duration of unemployment and the state of the other macroeconomics objectives. If the economy is below its productive capacity, unemployment may be reduced by increasing AD. Expansionary fiscal and/ or monetary policy can be used to create jobs. Fiscal policy: increase government spending and/or cut taxes in order to rise AD. Rise in government spending has the potential to have more of an impact on AD than cuts in tax. With an increase in AD, there will be an increase in Real GDP (as long as there is spare capacity in the economy.) If firms produce more, there will be an increase in demand for workers and therefore lower demand-deficient unemployment. Also, with higher aggregate demand and strong economic growth, fewer firms will go bankrupt meaning fewer job losses. Monetary policy: Monetary policy would involve cutting interest rates. Lower rates decrease the cost of borrowing and encourage people to spend and invest. This increases AD and should also help to increase GDP and reduce demand deficient unemployment. Also lower interest rates will reduce exchange rate and make exports more competitive. Supply-side Policies/ Long Run Policies: Education and Training, Reduce Power of trades unions...

Words: 1039 - Pages: 5

Intermediate Macro Ch.11 Outline

...CHAPTER 11 MONEY, INTEREST, AND INCOME Chapter Outline • The Goods Market and the IS Curve • Investment and the Interest Rate • The Slope of the IS Curve • The Role of the Multiplier • The Position of the IS Curve • A Summary of the IS Curve • The Money Market and the LM Curve • The Demand for Money • The Supply of Money, Money Market Equilibrium and the LM Curve • The Slope of the LM Curve • Shifts in the LM Curve • A Summary of the LM Curve • Equilibrium in the Goods and Money Markets • Changes in the Equilibrium Income and Interest Rate: A First Look at Policy • Deriving the Aggregate Demand Curve • Working With Data Changes from the Previous Edition One of the major problems with this chapter in the previous editions is that the material was presented in a manner that made it sound like it would be difficult, which is not true. Therefore, the long introduction has been shortened, the confusing diagram (former Figure 12-2) has been removed, and the extra part concerning outline of the chapter has been removed. The derivation of the IS curve section has been rewritten at the beginning. Box 11-1 and Box 11-2 and 11-3 are new The LM curve section has been rewritten to make it more clear, and the relevant diagrams are now side by side, which makes much more sense. The last section of the chapter is rewritten to show the comparative statics of shifts in IS and LM; this serves as a good introduction to Chapter 12...

Words: 8863 - Pages: 36

Macro Economic Report

...PROJECT TITLE: ANALYSIS OF BRAZILIAN ECONOMY IMPACT OF GLOBAL SLOW-DOWN ON MACRO ECONOMY: FISCAL AND MONETARY POLICY RESPONSES AND CHALLENGES SUBMITED TO DR.GAJAVELLI V.S. AS A PART OF MEPP ECONOMIC POLICY ANALYSIS PROJECT BY SECTION A: GROUP 2 ABHISHEK JAIN ABHINAV BHARGAVA ANIRUDHA KOTGIRE ARUNDHATI SINGH ADITYA AGARWAL 2009003 2009017 2009024 2009027 2009041 Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. Introduction: .............................................................................................. 2 Economy - overview: ................................................................................. 2 General Political Environment: ............................................................... 3 Investment Environment: ......................................................................... 4 Political Violence: ...................................................................................... 4 Real Sector: ................................................................................................ 5 Monetary Policy: ....................................................................................... 5 External Sector: ......................................................................................... 6 Fiscal Policy: .............................................................................................. 6 10. Outlook: ...................................................................................................... 7 11...

Words: 2689 - Pages: 11

Ch 4 Test Linux/Unix

...Ch 4 test lux 205 True/False Indicate whether the statement is true or false. _T___ 1. UNIX/Linux store data, such as letters, product records, or vendor reports, in flat ASCII files. _F___ 2. The command rmdir can be used to delete a directory that is not empty. _T___ 3. Moving and renaming a file are essentially the same operation. _F___ 4. When you are moving files, using the -o option with the mv command can be a good idea so that you don’t unexpectedly overwrite a destination file with the same name. _F___ 5. When you use cat to combine two files into a third file, the first line of the output contains the first line of the first file followed by the first line of the second file. __F__ 6. When you use the paste command, by default, the pasted results appear in columns separated by commas. __T__ 7. You can complete a project using awk that you cannot complete using a combination of paste, cut, sort, and join. Multiple Choice Identify the choice that best completes the statement or answers the question. __C__ 8. In UNIX/Linux, text files and binary files are considered to be ____ files. a.|executable|c.|regular| b.|document|d.|dynamic| __A__ 9. Character special files are used by input/output devices for communicating one character at a time, providing what is called ____ data. a.|raw|c.|ASCII|| b.|binary|d.|block| __C__ 10. System administrators and programmers refer to standard input as ____. a.|sin|c.|stdin|| b.|stin|d...

Words: 1554 - Pages: 7

Macro Economic Assignment

...ECON 1002 Macroeconomics Suggested answers Tutorial 4 Equilibrium and the Aggregate Expenditures Model In this tutorial we return to Funland (from LA2 in Module 4) and explore the concept of equilibrium with the Aggregate Expenditure model. Please note you will learn this conceptual material by doing it yourself. Copying answers from friends will mean you do not really learn which will then be a big disadvantage for you in the mid-semester test. Suppose that Funland people consume 75 cents for every extra dollar they earn (and conversely save 25 cents for each extra dollar). Assume that autonomous consumption is $200 (i.e. what is spent regardless of income). Assume there is no external sector and no government expenditure yet, so Aggregate Expenditure is just C+I. 1. What is the formula for the consumption function? C = Cauton + ɑ(Y) C = 200 + 0.75Y Assume the Funland Bureau of Statistics employ you as an economist to complete the following table (Table One). They want to model what will happen if there is a planned $100 million of investment injection for that year. Because they know the consumption function they can work out the consumption level at different income levels. Savings can also be calculated because in this simple economy what is not consumed from income Y becomes savings (S). 2. Complete the missing cells in the table. The formula from i. will give you the C numbers. From this you can calculate Aggregate Expenditure You can then deduce...

Words: 838 - Pages: 4

Ch.9 Test Study

...Question 1 of 25 | 4.0/ 4.0 Points | Which of the following data are collected from consumers to develop a perceptual map for a particular product? | | | | A. A listing of all prospective brands and products | | | | | B. Managerial judgments about how consumers perceive products | | | | | C. Rank order of the ratings of a existing brand's preference relative to its competitors | | | | | D. Judgments of existing products or brands with respect to important attributes | | | | | E. Detailed explanations of why consumers make the choices they do | | Answer Key: D Feedback: What you chose is correct. | Question 2 of 25 | 4.0/ 4.0 Points | One marketing action that can be taken to sell a single product or service to multiple market segments is | | | | A. develop and produce another version of the product. | | | | | B. manufacture products that appeal to different markets. | | | | | C. develop separate promotional campaigns. | | | | | D. purchase another firm that has additional products that would appeal to multiple markets. | | | | | E. issue stock used for additional research and development for improved products. | | Answer Key: C Feedback: What you chose is correct. | Question 3 of 25 | 4.0/ 4.0 Points | The second step in segmenting and targeting markets is to | | | | A. group potential buyers into segments | | | | | B. group products to be sold into...

Words: 2019 - Pages: 9

Ch 2 Ex 3

...Andrew Gunnoe MSBA 5600 Ch 2 Ex 3 8/28/12 A) Rash-Away Contribution Margin (CM) = ($2.00 - $1.40)/$2.00 = .3 CM = Unit Selling Price – Unit Variable Cost / Unit Selling Price Absolute Increase in Unit Sales = $150,000 / $.60 (Unit Contribution) = 250,000 units Absolute Increase in Dollar Sales = $150,000 / .3 (CM) = $500,000 Red-Away Contribution Margin (CM) = ($1.00 - .25)/$1.00 = .75 CM = Unit Selling Price – Unit Variable Cost / Unit Selling Price Absolute Increase in Unit Sales = $150,000 / $.75 (Unit Contribution) = 200,000 units Absolute Increase in Dollar Sales = $150,000 / .75 (CM) = $200,000 B) Absolute Increase in dollar sales / Advertising (Fixed Cost) = Total Sales Dollars that must be produced to cover each incremental dollar of advertising Rash-Away $500,000 / $150,000 = $3.33 An additional $1.33 is needed to support the $150,000 of advertising Red-Away $200,000 / $150,000 = $1.67 An additional $.67 is needed to support the $150,000 of advertising C) Rash-Away Contribution Margin (CM) = ($1.80 - $1.40)/$.40 = .22 CM = Unit Selling Price – Unit Variable Cost / Unit Selling Price Absolute Increase in Unit Sales = $150,000 / $.40 (Unit Contribution) = 375,000 units Absolute Increase in Dollar Sales = $150,000 / .22 (CM) =......

Words: 256 - Pages: 2