Macro Review 5+6

Assume a country's government increases taxes and its central bank decreases the money supply. The action will result in an increase of which of the following in the short run?

D. Unemployment

Which of the following monetary and fiscal policy mixes will reduce unemployment?

B. Buying government bonds in the open market and decreasing taxes

Which of the following would cause a movement from point S to point R on the short run Phillips curve above?

A. An unanticipated increase in government spending.

The long run Phillips curve indicates that there have been no trade-offs between

E. Inflation and Unemployment

An increase in the money supply will result in an increase in

C. Inflation in the short run and no change in output in the long run.

if real output is $9,000 and the price level is two and the velocity of money is 3 then the money supply is

C. $6000

which of the following is true about a country's national debt

C. it increases when the country's government has a budget deficit

when the total amount the government spends equals tax revenues in any given year which of the following must remain constant?

B. The national debt

an increase in government spending financed by increased borrowing will most likely change the real interest rate and the gross private domestic investment in which of the following ways?

D. Real interest rate; increase. GDPI: Decrease

an increase in government spending financed by borrowing will result in which of the following?

E. the rate of physical capital accumulation will decrease in the short run

economic growth is shown by a rightward shift in

C. the production possibilities curve

increases in human capital can be achieved by which of the following?

C. improving the quality of job training programs

economic growth refers to an increase of which of the following?

D. potential real gross domestic product

which of the following is least likely to affect the long run growth of an economy

D. A specific tax on luxury goods

which of the following will happen if a country's government reduces business taxes

B. The short-run aggregate supply curve will shift to the right

in the long run government subsidies that promote the development of technology with widespread business applications will have which of the following effects?

C. a positive supply shock and lower price level

which of the following transactions would increase the current account surplus in Japan's balance of payments accounts

A. Japan based company sells roasted coffee to Canada

which of the following transactions is included in the financial account of country X's balance of payments accounts?

E. an individual and country x buys new government bonds issued by country e.

in the foreign exchange market the exchange rate is defined as

A. the price of one currency in terms of another currency

if one Indian rupee is exchanged for three Japanese yen in the foreign exchange market which of the following describes the foreign exchange market for Indian rupees

D. There is a shortage of 40 rupees

which of the following will most likely cause a depreciation in a country's currency

A. an increase in the country's price level

the graph above shows the foreign exchange market for United States dollars in terms of Japanese yen. Assume that there is an increase in the United States consumers preference for Japanese automobiles. which of the following changes will most likely take place in the market for dollars?

C. the supply of dollars will increase.

if the United States government increases deficit spending which of the following will occur as a result of the change in the interest rate?

A. the United States dollar will appreciate in foreign exchange markets.

assume that country x and country y are trading partners. if the average income and country x increases, which of the following will occur in the foreign exchange market?

B. did a man for countrywise currency will increase and country X's currency will depreciate.

assume that the United States Central Bank sells government bonds on the open market. how will the sale affect the value of the United States dollar on the foreign exchange market and the United States exports?

A. value of the dollar will increase. exports will decrease

when the United States dollar appreciates against the Euro which of the following will most likely happen?

C. United States tourists will pay fewer dollars for trips to Europe

if real interest rates in the United States fall relative to real interest rates in great britain, which of the following will occur?

E. the British pound will appreciate relative to the dollar

if the Central Bank of country z wishes to increase the value of its currency on foreign exchange markets, it can do which of the following?

D. raise interest rates in country z

which of the following is likely to result in an inflow of financial Capital to country z

C. increased sales of government bonds by the Central Bank of country z

which of the following is true of a current account deficit?

E. it is financed by a surplus in the financial account

if consumers in Canada increase their demand for products that are manufactured in India which of the following will occur?

D. Canada's financial capital inflow will increase

which of the following is true about the Phillips curve

A. a change in aggregate demand does not shift the long run Phillips curve

an increase in the expected inflation rate will cause the

B. short run Phillips curve to shift to the right

all of the following may result in increases in real gross domestic product in the long run except

E. decrease in Factor productivity

which of the following will most likely contribute to Long run economic growth?

C. high levels of investment in plant and equipment

which of the following will most likely promote long-run economic?

C. increased funding for research and development

increased spending on which of the following contributes most to long-term economic growth?

C. education and infrastructure

the real interest rate in country x is 3% and is 7% in country why which of the following correctly predicts the effect of the differences in interest rates between the two countries?

D. countrywide will experience financial capital inflows and countrywise currency will appreciate

a country can have an increased surplus and it's balance of trade as a result of

B. declining imports and rising exports

the short run Phillips curve implies that there is a trade off between

C. inflation and unemployment

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