Recessionary gap - Study guides, Class notes & Summaries
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College of Business Administration Department of Economics Principles of Macroeconomics
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Multiple-Choice Questions (100 points) 
1. You own shares in a well-managed diversified company. If a court finds that one of the 
company's products was seriously defective and orders the company to pay damages to 
all purchasers of the product, then the price of your shares will _____, holding other 
factors constant. 
a) decrease. 
b) be indeterminate. 
c) either increase or decrease. 
d) increase. 
e) not change. 
2. In the 1960s imports and exports each equaled less than ...
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Econ 231 - Exam 2 - Chapters 8 & 9 - Practice Problems || Questions and 100% Verified Answers.
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Which of the following changes results from a decrease in an economy's disposable income? 
 
A rightward shift of the consumption function 
An upward movement along the consumption function 
A leftward shift of the consumption function 
A downward movement along the consumption function correct answers A downward movement along the consumption function 
 
Which of the following is considered a leakage in the circular flow model? 
 
Business spending 
Total exports 
Investment spending 
Househol...
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LCCC Macroeconomics Final Exam Questions & Answers 2024
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LCCC Macroeconomics Final Exam Questions & Answers 2024 
 
 
Leakage - ANSWERS*A diversion of income from spending on domestic output 
 
What will happen if leakages are greater than injections? - ANSWERSThe economy will slow 
 
What does the multiplier process describe? - ANSWERS*How layoffs in one sector can spread to other sectors 
 
Formula for the multiplier - ANSWERS1 / (1 - MPC) 
 
What does a recessionary gap represent? - ANSWERSThe value of goods and services that could be produced but ...
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AP WORLD HISTORY _ Unit 5: International Trade and Foreign Exchange Problem Set #5
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AP WORLD HISTORY _ Unit 5: International Trade and Foreign Exchange Problem Set #5 1. ( ____/30) Define the term and explain a situation that demonstrates the ‘real world’ application of each of the following. Make sure your example clearly demonstrates your understanding of each concept. a. Trade Deficit and Trade Surplus ( ____/10) b. Current Account and Financial Account ( ____/10) c. Appreciation and Depreciation ( ____/10) 2. ( ____/50) The Balance of Payments (BOP) measures all interna...
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CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers,100% CORRECT
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CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers 
 
Addition Rule of Probability - CORRECT ANSWER ADDITION: P(A or B) = P(A) + P(B) - P(AB) 
 
Roy's Safety First Criterion - CORRECT ANSWER Safety First Ratio = (E(R) - Rₜ) / σ 
 
Larger ratio is better 
 
If (Rₜ) is risk free rate, then it becomes Sharpe Ratio 
 
Sharpe Ratio - CORRECT ANSWER Sharpe Ratio = (E(R) - RFR) / σ 
 
Larger ratio is better 
 
If (Rt) is higher than RFR, then it becomes Safety First Ratio 
 
Centra...
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ECON1002 Cumulative Quizzes (Wk8-12) Questions With Complete Solutions
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For a given level of inflation, if bright prospects for the future of the economy cause businesses to increase their spending on new capital, then the _____ shifts _____. 
- aggregate demand curve; right 
- aggregate demand curve; left 
- aggregate supply line; upward 
- aggregate supply line; downward correct answer: - aggregate demand curve; right 
 
Policymakers' use of stabilisation policy to eliminate output gaps is more appropriate when an economy self-corrects very _____ and when the ou...
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EC 111 - CH 11 || very Flawless.
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The AD shortfall. correct answers The amount of additional aggregate demand needed to achieve full employment after allowing for price level changes is 
 
Horizontal distance between the aggregate demand curve necessary for full employment and the aggregate demand curve that intersects AS at the equilibrium price. correct answers In a diagram of aggregate demand and supply curves, the AD shortfall is measured as the 
 
$3 million - (AD shortfall/multiplier) correct answers If the multiplier equa...
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FBLA Economics Exam Questions with Correct Answers
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Fiscal Policy Correct Answer Action by Congress to stabilize the economy 
 
Monetary Policy Correct Answer Actions by the Federal Reserve Bank to stabilize the economy 
 
Autonomous Consumption Correct Answer When consumers spend a certain amount of money, no matter what, regardless of their income 
 
Disposable Income Correct Answer Income after taxes 
 
Discretionary Fiscal Policy Correct Answer Non-mandatory changes in taxation, spending, or other fiscal activities by a government in response...
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ECON 200 Final Study Guide Rated A
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ECON 200 Final Study Guide Rated A+ 
marginal 
rise; downward-sloping 
cyclical 
money market deposit accounts 
bank deposits at the Federal Reserve equal $0 
$4 million; $40 million 
federal open market committee 
banks will have a reserve deficiency 
federal funds 
bank's reserves increase 
buys; Fed; lowers; reserves 
none of the above 
purchase; decrease 
monetarists believe that control of the money supply is very important to the health of the economy 
can be turned into a theory of the m...
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Econ 203 Midterm Exam Actual Questions and Answers 2024-2025 Complete
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Econ 203 Midterm Exam Actual Questions and Answers Complete 
 
1.	Commercial banks create money by: 
A.	printing them. 
B.	keeping a fraction of deposits as reserves and lending the rest. 
C.	they do not, only the central bank can create money. 
D.	none of the above. 
2.	What is the role of a commercial bank? 
A.	To maximize profits for its shareholders 
B.	To take customers’ deposits and make loans 
C.	To create money through the banking system 
D.	All the answers are correct 
3.	Which of th...
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