Answer 1:
Option A. One way to reduce recessionary gap in the economy through the use of fiscal policy is to increase government purchases which will increase aggregate demand in the economy and thus shifts the AD curve rightwards leading to reduction in the recessionary gap in the economy.
Answer 2;
Option A. Open Market Operations involve sale and purchase of government securities by the Central Bank to influence the level of money supply in the economy. Purchase of government securities increases money supply and sale of government securities reduces money supply in the economy.
Answer 3:
Option C. The demand curve of a good slopes downward because quantity demanded of the good varies inversely with the price of the good.
Answer 4;
Option A. If there are no unused resources in the economy, then the production of one good can be increased by reducing the production of another good in the economy. Thus, PPF slopes downward in an economy.
THERE ARE 20 total QUESTIONS PLEASE ANSWER ALL OF THEM QUESTION 1 One way to reduce the recessio...
answer every single picture QUESTION 5 Suppose James transfers $500 from his checking account to his savings account. As a result of this action, OM1 stays the same and M2 falls. M1 falls and M2 stays the same. OBoth M1 and M2 fall. OBoth M1 and M2 stay the same. We were unable to transcribe this image1 poi QUESTION 7 Suppose the required reserve ratio is 25%. Assuming that banks hold no excess reserves and consumers hold no cash, this...
answer all QUESTION 14 The discount rate is the interest rate that O the Fed charges on loans made to the government. O member banks charge on loans made to the Fed. O the government charges on loans made to the Fed. the Fed charges on loans made to member banks. QUESTION 15 The slope of the aggregate demand curve indicates that, as the price level increases, O the aggregate demand curve shifts rightward. O the real GDP demanded decreases....
Question Completion Status: QUESTION 9 The slope of the aggregate demand curve indicates that, as the price level increases, O the aggregate demand curve shifts rightward. the real GDP demanded decreases. the real GDP demanded increases. the aggregate demand curve shifts leftward. QUESTION 10 Checking deposits are commodity money. liabilities for banks. not included in M1 or M2. primarily used as a store of value. QUESTION 11 Suppose the required reserve ratio is 25%. Assuming that banks hold no excess...
QUESTION 9 An automatic stabilizer is O a tool that helps reduce the effect of a fall in demand for a firm's product. O a tool that ensures imports always equal exports in an economy a feature of the economy that reduces its sensitivity to shocks. O a feature of the economy that reduces its dependence on international trade. QUESTION 10 Which of the following is NOT a way for the Fed to increase aggregate demand? O Lowering the discount...
Question 26 With a vertical long run AS curve, any attempt by the government to reduce GDP through decrease in aggregate demand will lead to Select the correct answer below decrease in GDP with no corresponding deflation in the long run decrease in both GDP and the price level in the long run decrease in the price level with no effect on GDP in the long run decrease in the price level with no corresponding decrease in GDP in the...
Macroeconomic Multiple Choice Questions Answer All 10 Questions* 1) If the Central Bank of Kuwait puts in place an expansionary monetary policy, its decision is based on A) the fact that the economy is at full employment B) Expectation of excessive inflation in the future C) the fact that the economy is in an expansion D) Unemployment level is high 2) When the interest rate is set at a very low rate A) the opportunity cost of holding money is...
QUESTION 6 1 poin An adverse supply shock causes output to increase; increase and prices to increase; decrease decrease increase O decrease; decrease QUESTION 7 1 poir The demand curve for an individual good almost always slopes downward because O demand varies inversely with prices of other goods. the quantity demanded varies inversely with time. the quantity demanded varies inversely with price. demand varies inversely with the income of consumers. QUESTION 8 1 poir The basic principle of the production...
Explain the effect of each of the following events on Mexico's aggregate demand. If the government of Mexico cuts income taxes, Mexico's aggregate demand O A. increases, and the aggregate demand curve shifts leftward O B. increases, and the aggregate demand curve shifts rightward O C. is unchanged, but the price level falls and quantity of real GDP demanded increases OD. decreases because it decreases the amount the government can spend O E. is unchanged because it just decreases the...
QUESTION 14 An automatic stabilizer is a tool that helps reduce the effect of a fall in demand for a firm's product. a tool that ensures imports always equal exports in an economy a feature of the economy that reduces its sensitivity to shocks a feature of the economy that reduces its dependence on international trade. QUESTION 15 M1 includes currency, travelers' checks, and checking accounts currency, travelers' checks, checking accounts, and savings accounts. currency None of the above. QUESTION...
SECTION A Answer ALL questions in this section. [40 MARKS] QUESTION 1 (20 Marks) Choose the most appropriate answer. Write down numbers 1.1 to 1.10 in your answer book and next to each number write the letter that represents the correct answer. E.g. 1.11 a 1.1 The rise in the value of one currency in relation to another is: a) Depreciation of the currency. b) An appreciation of the currency. c) A debasement of the currency. d) A weakening of...