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Test Bank for macroeconomics final exam 11th Edition by N. Gregory Mankiw
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Test Bank for macroeconomics final exam 11th Edition by N. Gregory Mankiw
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Test Bank for macroeconomics finalexam 11th Edition by N. Gregory Mankiw
Total income households have after paying taxes and receiving government transfers -
ANSdisposable income
Market failure may occur because - ANSindividual actions have side effects that are not properly
taken into account by the market
A graphical representation of the relationship between the total quantity of goods and services
demanded and the price level - ANSaggregate demand curve
If banks were required to keep 100% of deposits in reserves, they could - ANSmake no loans
The point on a business cycle when real GDP stops falling and begins rising - ANSbusiness
cycle trough
In the long run, changes in the money supply - ANSaffect only the price level but they do not
change aggregate output
The double coincidence of wants problem can be solved by - ANSmoney
An inflationary gap can be closed with - ANSa decrease in government purchases
Monetary policy affects GDP and the price level by - ANSchanging aggregate demand
The short-run aggregate supply curve is positively sloped because - ANSwages are sticky or
don't readily adjust to changes in economic conditions in the short run
nominal GDP - ANSthat year's output times same year price
real GDP - ANSbase year price times that year's output
The money spent on domestically produced final goods and services - ANSis the GDP, appears
as income to someone, and appears in the circular flow model
Diminishing returns to physical capital means that as more and more physical capital is
combined with a fixed amount of human capital with a fixed technology, eventually -
ANSadditions to aggregate output or real GDP declines
, The most important factor affecting a household's consumer spending is - ANScurrent
disposable income
A contractionary fiscal policy is a policy that - ANSreduces aggregate demand by decreasing
government purchases
The CPI is used for calculating payments from the U.S. government to individuals. To the extent
it is biased upward, this index - ANSraises government expenditures
Physical capital would include - ANSthe tools a worker has to work with
In the "paradox of thrift" - ANSincreased saving by individuals increases their chances of
becoming unemployed
Long-run growth is the sustained upward trend in - ANSaggregate output per person over
several decades
When the value of a nation's imports exceeds the value of that nation's exports, the nation is
said to have - ANSa trade deficit
Deflation - ANScan cause decreases in output
Among the assets of a bank are - ANSloans
The marginal propensity to save is - ANSthe fraction of an additional dollar of disposable
income that is saved
The process of bringing down inflation that has been embedded into expectations is called -
ANSdisinflation
Technological improvements will - ANSshift the production possibility frontier outward
Which of the following is included in GDP - ANSthe purchase of a ticket to a Rolling Stones
concert
A key insight into macroeconomics is that in the short run the combined effect of individual
decisions is - ANSvery different from what any one individual intended
The short-run Phillips curve represents the relationship between the unemployment rate and the
rate of change in - ANSaggregate price level
Which of the following demonstrates how people respond to incentives to make themselves
better off? - ANSmore students major in economics when they hear that salaries for economists
are rising
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