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ECO 202 Exam: – Questions With Complete Answers
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ECO 202 Exam: – Questions With Complete Answers
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ECO 202 Exam: – Questions With Complete Answerschương Aggregate demand and supply
if US price increase relative to the rest of the world, we would expect:
A imports and net exports to increase
B export and net export to decrease
C imports to increase and net export to decrease
D exports to decrease and net export to increase Right Ans - B export and
net export to decrease
aggregate demand curve slopes downward can be explained in part through
A the wealth effect
B the negative relationship between price level and government spending
C the positive relationship between the price level and net exports
D all of these are true Right Ans - A the wealth effect ( khan academy)
when the us price level increase ,we would expect
A a movement downward along the aggregate demand curve
B a shift in aggregate demand to the right
C a shift to the right of aggregate demand curve
D a shift to the left of aggregate demand curve Right Ans - A a movement
downward along the aggregate demand curve
if the government were to increase income taxes, we would predict
A a downward movement along the aggregate demand curve
B a shift in aggregate demand to the right
C a shift in aggregate demand to the left
D a shift straight down of aggregate demand Right Ans - C a shift in
aggregate demand to the left
short-run decisions refers to
A hours, daily, weekly decisions that firms have to make
B immediate decisions that firms have to make that affect level of output, but
not the production process
C immediate decisions that firms have to make that affect production process,
not level of output
,D decision a firm has to make immediately to prepare for either entering or
exiting an industry Right Ans - A hours, daily, weekly decisions that firms
have to make
firms are willing to change the aggregate quantity of output supplied based on
price
A in the short run only
B in the long run only
C in both the short and the long
D Price does not affect the quantity that firms supply Right Ans - A in the
short run only( input cost will appear in the long run so in order to earn
positive economic benefit => charge short run)
in the long run, if the price of goods and services are higher than before
A the aggregate quantity supplied will be higher
B the aggregate quantity demanded will be lower
C the aggregate quantity supplied will not change
D the aggregate quantity demanded will be higher Right Ans - C the
aggregate quantity supplied will not change( giả sử các yếu tố khác bằng
nhau) (price level ko affect a.supply in long run)
the long-run aggregate supply curve represents the level of output possible if
the economy
A is operating at full capacity
B is operating at unemployment rate of zero
C has a zero inflation rate
D all of these are true Right Ans - A is operating at full capacity
Economic growth is:
A an increase in our economy's potential output
B represented by long-run aggregate supply curve shifts right
C a result of having more natural resources, land or capital
D all true Right Ans - D all true
the introduction of internet over the last 20 years has caused
A the long-run aggregate supply curve shifts right
B the long-run aggregate supply curve shift left
C the short-run aggregate supply curve shift left
, D the long run aggregate supply is fixed and does not move Right Ans - A
the long-run aggregate supply curve shifts right
explain what happens to the economy if temporary supply side shock hits the
economy Right Ans - in short run, SRAS shifts left, price increase and
output decrease. in long run, SRAS shifts right, output increase, price decrease
to original level
Chương Fiscal policy
Fiscal policy most directly affects the economy by increasing or decreasing: A.
aggregate demand.
B. short-run aggregate supply
C. long-run aggregate supply.
D. the money supply. Right Ans - A because fiscal policy affects the
economy through gov' spending and taxation
An example of fiscal policy would be government:
A. increasing the amount of available educational grants.
B. decreasing the income tax.
C. increasing corporate income taxes.
D. All of these are examples of fiscal policy. Right Ans - D
If the government were to decrease its spending, it would expect:
A. aggregate demand to fall, and thus GDP to fall
B. aggregate demand to rise, and thus GDP to fall.
C. aggregate demand to fall, and thus GDP to rise.
D. aggregate demand to rise, and thus GDP to rise. Right Ans - A
( contractionary fiscal policy)
if the government wished to shift aggregate demand to the left, it might:
A. decrease military spending.
B. increase the amount of educational grants available.
C. decrease corporate income taxes.
D. All of these would cause a decrease in aggregate demand. Right Ans - A
If the government decreases the income tax rate, then:
A. GDP will decrease.
B. aggregate demand will shift left
.C. aggregate demand will shift right.
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