Question

c. The total d. The margf 19. The U d. Lower aggregate demand. 10. In an economy facing a recession, Federal Reserve should a. Increase interest rate. b. Appreciate American dollar against other currencies. c. Increase money supplies. d. Increase taxes. 11. Last year real GDP per person in the imaginary nation of Olympus was 4,500. The year before it was 4,250. By about what percentage did Olympian real GDP per person grow during the periodh a. 4.6 percent b. 5.2 percent c. 5.9 percent d. 6.5 percent 12. Suppose that a country imports $75 million of goods and services and exports $100 million of goods and services. What is the value of net exports? a. $175 million b. $75 million c. $25 million d. -$25 million 13. If the exchange rate is 125 yen = $1, a bottle of rice wine that costs 2,500 yen costs a. $20. b. $25. c. $22. d. None of the above is correct. 14. Other things the same, if the exchange rate changes from 100 yen per dollar to 120 yen per dollar, the dollar has a. appreciated and so buys more Japanese goods. b. appreciated and so buys fewer Japanese goods. c. depreciated and so buys more Japanese goods. d. depreciated and so buys fewer Japanese goods. 15. The belief that supply creates its own demand is known as: a. The law of supply b. Say's Law c. Okun's Law d. Keynesian Theory. 16. . In 2019, Dow Jones Index in the late November ranges: a. 24,500 to 25,500. b. 25,500 to 26,500. c. 26,500 to 27,500. d. 27,500 to 28,500. 17. To be counted as labor force, an individual must: a. be either the employed or unemployed b. not have a job, and not looking for work. c. be either student or housewives. d. be willing to accept the first job offer. 18. The ratio of additional consumption associated with a change in income is known as the: a. The marginal propensity to consume b. The average propensity to consume

Answer 1

Ans.10- (C)

When money supply is increases, AD curve shifts to the right which leads to a rise in output.

Ans.11- (C)

% Growth =4500-4250/4250 *100=5.9%

Ans.12- (C)
Net exports = exports - imports=100-75=25

Ans.13- (A)

Ans.14- (A)

Ans.15-(B)