Just solve questions 41-44, thank u! 30.A surplus of product will occur when price is: above equilibrium with the result that quantity demanded exceeds quantity supplied above equilibrium with the result that quantity supplied exceeds quantity demanded below equilibrium with the result that quantity demanded exceeds quantity supplied below equilibrium with the result that quantity supplied exceeds quantity demanded 31.Which of the following would decrease aggregate demand and shift the AD curve to the left? a decline in personal income tax rates a decline in consumer spending a higher level of government purchases a fall in interest rates 32.Which of the following is an implicit cost to the Johnston Manufacturing Company? payments of wages to its office workers property taxes rent paid for the use of equipment owned by the Schultz Machinery Company returns that the shareholders could have received if they had not bought shares in the Johnson Manufacturing Company 33.Which of the following is a role of the Bank of Canada? Managing the money supply Increasing or decreasing government spending Establishing fiscal budgets Granting loans to consumers 34.Fiscal policy refers to: Changes in taxes and government purchases made by legislation for the purpose of stabilizing the economy The authority that the prime minister has to change personal income tax rates Changes in government purchases or taxes that have the effect of destabilizing the economy Changes in the money supply and interest rates by the Bank of Canada5 35.If real income, employment, and investment are rising, the economy is: At the phase called the peak In a period of expansion In a phase called a recession In a trough 36.A fractional reserve banking system is one in which banks within the system: Can lend out all of their reserves Keep all of their reserves Can lend out only a fraction of their reserves Pay higher rates of interest to depositors than they charge to borrowers. 37.An industry composed of three firms, each of which considers the potential reactions of its rivals in making pricing decisions, yet is not concerned with the potential entry of other firms, can best be described as: perfect competition a monopoly an oligopoly monopolistic competition 38.Product differentiation and advertising are used by imperfectly competitive businesses to achieve the two goals of: increased demand and demand elasticity decreased demand elasticity and increased opportunity to engage in successful price fixing the provision of consumer information and the promotion of consumer preferences increased demand and decreased demand elasticity 39.GDP includes: neither intermediate nor final products both intermediate and final products intermediate, but not final, products final, but not intermediate, products 40.Suppose that a business had implicit costs of $500 000 and had explicit costs of $5 million in a specific year. If in that year the firm sold 100 000 units of its output at $50 per unit, its accounting: profits were zero and its economic losses were $500 000 losses were $500 000 and its economic losses were zero profits were $500 000 and its economic profits were $1 million profits were zero and its economic profits were $500 000 41.The elasticity of demand for a product is likely to be greater: if the product is a "necessity" rather than a "luxury" good the greater the amount of time over which producers adjust to a price change the smaller the number of substitute products the greater the amount of time over which buyers adjust to a price change 42.In which of the following instances does total revenue increase? price falls and supply is inelastic price falls and demand is unit-elastic price rises and demand is inelastic price rises and demand is elastic 43.Which of the following is a microeconomic statement? Total economic output increased by 2.5 percent last year. Unemployment was 9.8 percent of the labour force last year. The price of wheat declined last year. The general price level increased by 4 percent last year 44.The multiplier effect means that: consumption is typically several times larger than withdrawals an increase in spending can cause aggregate demand to change by a larger amount an increase in consumption can result in a larger increase in government purchases a small decline in MPC can cause aggregate demand to rise by several times that amount 45.The spending multiplier is calculated using the formula: 1/MPW (1-MPW)/MPC (1-MPC) MPW 1/MPC 46.Which of the following is not a tool of monetary policy? an increase in the target overnight rate an open market purchase of bonds changes in tax rates an open market sale of bonds 47.If government purchases increase by $20 billion and aggregate demand shifts rightward by $30 billion as a result, we can conclude that: the spending multiplier is 2.00 the MPC for this economy is 0.33 unemployment is rising the MPW for this economy is 0.33
Just solve questions 41-44, thank u! 30.A surplus of product will occur when price is: above equilibrium with the result that quantity demanded exceeds quantity supplied above equilibrium with the result that quantity supplied exceeds quantity demanded below equilibrium with the result that quantity demanded exceeds quantity supplied below equilibrium with the result that quantity supplied exceeds quantity demanded 31.Which of the following would decrease aggregate demand and shift the AD curve to the left? a decline in personal income tax rates a decline in consumer spending a higher level of government purchases a fall in interest rates 32.Which of the following is an implicit cost to the Johnston Manufacturing Company? payments of wages to its office workers property taxes rent paid for the use of equipment owned by the Schultz Machinery Company returns that the shareholders could have received if they had not bought shares in the Johnson Manufacturing Company 33.Which of the following is a role of the Bank of Canada? Managing the money supply Increasing or decreasing government spending Establishing fiscal budgets Granting loans to consumers 34.Fiscal policy refers to: Changes in taxes and government purchases made by legislation for the purpose of stabilizing the economy The authority that the prime minister has to change personal income tax rates Changes in government purchases or taxes that have the effect of destabilizing the economy Changes in the money supply and interest rates by the Bank of Canada5 35.If real income, employment, and investment are rising, the economy is: At the phase called the peak In a period of expansion In a phase called a recession In a trough 36.A fractional reserve banking system is one in which banks within the system: Can lend out all of their reserves Keep all of their reserves Can lend out only a fraction of their reserves Pay higher rates of interest to depositors than they charge to borrowers. 37.An industry composed of three firms, each of which considers the potential reactions of its rivals in making pricing decisions, yet is not concerned with the potential entry of other firms, can best be described as: perfect competition a monopoly an oligopoly monopolistic competition 38.Product differentiation and advertising are used by imperfectly competitive businesses to achieve the two goals of: increased demand and demand elasticity decreased demand elasticity and increased opportunity to engage in successful price fixing the provision of consumer information and the promotion of consumer preferences increased demand and decreased demand elasticity 39.GDP includes: neither intermediate nor final products both intermediate and final products intermediate, but not final, products final, but not intermediate, products 40.Suppose that a business had implicit costs of $500 000 and had explicit costs of $5 million in a specific year. If in that year the firm sold 100 000 units of its output at $50 per unit, its accounting: profits were zero and its economic losses were $500 000 losses were $500 000 and its economic losses were zero profits were $500 000 and its economic profits were $1 million profits were zero and its economic profits were $500 000 41.The elasticity of demand for a product is likely to be greater: if the product is a "necessity" rather than a "luxury" good the greater the amount of time over which producers adjust to a price change the smaller the number of substitute products the greater the amount of time over which buyers adjust to a price change 42.In which of the following instances does total revenue increase? price falls and supply is inelastic price falls and demand is unit-elastic price rises and demand is inelastic price rises and demand is elastic 43.Which of the following is a microeconomic statement? Total economic output increased by 2.5 percent last year. Unemployment was 9.8 percent of the labour force last year. The price of wheat declined last year. The general price level increased by 4 percent last year 44.The multiplier effect means that: consumption is typically several times larger than withdrawals an increase in spending can cause aggregate demand to change by a larger amount an increase in consumption can result in a larger increase in government purchases a small decline in MPC can cause aggregate demand to rise by several times that amount 45.The spending multiplier is calculated using the formula: 1/MPW (1-MPW)/MPC (1-MPC) MPW 1/MPC 46.Which of the following is not a tool of monetary policy? an increase in the target overnight rate an open market purchase of bonds changes in tax rates an open market sale of bonds 47.If government purchases increase by $20 billion and aggregate demand shifts rightward by $30 billion as a result, we can conclude that: the spending multiplier is 2.00 the MPC for this economy is 0.33 unemployment is rising the MPW for this economy is 0.33
Chapter8: Macroeconomic Equilibrium: Aggregate Demand And Supply
Section: Chapter Questions
Problem 11E
Related questions
Question
Just solve questions 41-44, thank u!
30.A surplus of product will occur when
- above equilibrium with the result that quantity
demanded exceeds quantity supplied
- above equilibrium with the result that quantity
supplied exceeds quantity demanded
- below equilibrium with the result that quantity
demanded exceeds quantity supplied
- below equilibrium with the result that quantity
supplied exceeds quantity demanded
- 31.Which of the following would decrease
aggregate demand and shift the AD curve to the
left?
- a decline in personal income tax rates
- a decline in consumer spending
- a higher level of government purchases
- a fall in interest rates
- 32.Which of the following is an implicit cost to the
Johnston Manufacturing Company?
- payments of wages to its office workers
- property taxes
- rent paid for the use of equipment owned by the
Schultz Machinery Company
- returns that the shareholders could have received if
they had not bought shares in the Johnson
Manufacturing Company
- 33.Which of the following is a role of the Bank of
Canada?
- Managing the money supply
- Increasing or decreasing government spending
- Establishing fiscal budgets
- Granting loans to consumers
- 34.Fiscal policy refers to:
- Changes in taxes and government purchases made by
legislation for the purpose of stabilizing the economy
- The authority that the prime minister has to change
personal income tax rates
- Changes in government purchases or taxes that have the
effect of destabilizing the economy
- Changes in the money supply and interest rates by the
Bank of Canada5
- 35.If real income, employment, and investment
are rising, the economy is:
- At the phase called the peak
- In a period of expansion
- In a phase called a recession
- In a trough
- 36.A fractional reserve banking system is one in
which banks within the system:
- Can lend out all of their reserves
- Keep all of their reserves
- Can lend out only a fraction of their reserves
- Pay higher rates of interest to depositors than
they charge to borrowers.
- 37.An industry composed of three firms, each of
which considers the potential reactions of its rivals in
making pricing decisions, yet is not concerned with the
potential entry of other firms, can best be described
as:
perfect competition - a
monopoly - an oligopoly
monopolistic competition - 38.Product differentiation and advertising are used by
imperfectly competitive businesses to achieve the two
goals of:
- increased demand and demand elasticity
- decreased demand elasticity and increased opportunity
to engage in successful price fixing
- the provision of consumer information and the
promotion of consumer preferences
- increased demand and decreased demand elasticity
- 39.GDP includes:
- neither intermediate nor final products
- both intermediate and final products
- intermediate, but not final, products
- final, but not intermediate, products
- 40.Suppose that a business had implicit costs of $500
000 and had explicit costs of $5 million in a specific year.
If in that year the firm sold 100 000 units of its output at
$50 per unit, its accounting:
- profits were zero and its economic losses were $500 000
- losses were $500 000 and its economic losses were zero
- profits were $500 000 and its economic profits were $1
million
- profits were zero and its economic profits were $500 000
- 41.The
elasticity of demand for a product is likely to
be greater:
- if the product is a "necessity" rather than a "luxury"
good
- the greater the amount of time over which
producers adjust to a price change
- the smaller the number of substitute products
- the greater the amount of time over which buyers
adjust to a price change
- 42.In which of the following instances does total
revenue increase?
- price falls and supply is inelastic
- price falls and
demand is unit-elastic - price rises and demand is inelastic
- price rises and demand is elastic
- 43.Which of the following is a
microeconomic
statement?
- Total economic output increased by 2.5 percent last
year.
Unemployment was 9.8 percent of the labour force
last year.
- The price of wheat declined last year.
- The general price level increased by 4 percent last
year
- 44.The multiplier effect means that:
- consumption is typically several times larger than
withdrawals
- an increase in spending can cause aggregate demand to
change by a larger amount
- an increase in consumption can result in a larger
increase in government purchases
- a small decline in MPC can cause aggregate demand to
rise by several times that amount
- 45.The spending multiplier is calculated using the
formula:
- 1/MPW
- (1-MPW)/MPC
- (1-MPC) MPW
- 1/MPC
- 46.Which of the following is not a tool of monetary
policy?
- an increase in the target overnight rate
- an open market purchase of bonds
- changes in tax rates
- an open market sale of bonds
- 47.If government purchases increase by $20 billion
and aggregate demand shifts rightward by $30 billion
as a result, we can conclude that:
- the spending multiplier is 2.00
- the MPC for this economy is 0.33
- unemployment is rising
- the MPW for this economy is 0.33
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