Course Introduction
Applied Macroeconomics
Chapter Exam Questions
Applied Macroeconomics explores the practical application of macroeconomic theories and models to real-world economic issues and policy-making. The course covers topics such as national income determination, unemployment, inflation, fiscal and monetary policy, economic growth, and international trade, with an emphasis on analyzing contemporary economic data and policy debates. Students will learn to interpret macroeconomic indicators, evaluate government policies, and utilize quantitative methods and case studies to assess the impact of macroeconomic phenomena on both the domestic and global economy.
Recommended Textbook
Macroeconomics A Contemporary Introduction 9th Edition by William A. McEachern
Available Study Resources on Quizplus
26 Chapters
3954 Verified Questions
3954 Flashcards
Source URL: https://quizplus.com/study-set/2473
Page 2
Chapter 1: The Art and Science of Economic Analysis
Available Study Resources on Quizplus for this Chatper
147 Verified Questions
147 Flashcards
Source URL: https://quizplus.com/quiz/49101
Sample Questions
Q1) Most real economic choices involve small (or marginal) changes, rather than all-or-nothing decisions.
A)True
B)False
Answer: True
Q2) The association-causation fallacy is the error of assuming that what is true for one member of a group must be true for the group.
A)True
B)False
Answer: False
Q3) Rational choice by an individual implies
A)the use of some mathematical model when solving a problem
B)making decisions aimed at achieving some predetermined goal
C)that only monetary costs and benefits are weighed
D)that an individual will never regret any action taken
E)that scarcity can be eliminated for that individual
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 3
Chapter 2: Economic Tools and Economics Systems
Available Study Resources on Quizplus for this Chatper
195 Verified Questions
195 Flashcards
Source URL: https://quizplus.com/quiz/49102
Sample Questions
Q1) Which of the following points in Exhibit 2-3 is unattainable, given the quantity of resources and level of technology?
A)h
B)g
C)f
D)i
E)e
Answer: E
Q2) Which of the following provide the best evidence of specialization?
A)a firm that produces a line of related products, such as eight kinds of breakfast cereal
B)an architect who is willing to practice in only one geographic area
C)a physician that practices in a specialty area such as cardiology or orthopedic surgery
D)a family that eats at Wendy's every Thursday night
E)a retailer that sells goods but provides no services
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 4
Chapter 3: Economic Decision Makers
Available Study Resources on Quizplus for this Chatper
200 Verified Questions
200 Flashcards
Source URL: https://quizplus.com/quiz/49103
Sample Questions
Q1) The movement of households from rural to urban settings reduced the degree of specialization in household production.
A)True
B)False
Answer: True
Q2) The primary source of revenue for local governments is the property tax.
A)True
B)False
Answer: True
Q3) Which of the following is most likely to be a partnership?
A)Uncle Mort's Red Wrigglers
B)the accounting firm of Hope and Williams
C)General Motors
D)the Boston Symphony Orchestra
E)the U.S. Post Office
Answer: B
Q4) The personal income tax is based on the benefits-received principle of taxation.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Demand Supply and Markets
Available Study Resources on Quizplus for this Chatper
232 Verified Questions
232 Flashcards
Source URL: https://quizplus.com/quiz/49104
Sample Questions
Q1) If the price of the good described in Exhibit 4-1 is $1.60, then there is a
A)shortage of 30 units
B)surplus of 30 units
C)shortage of 20 units
D)surplus of 20 units
E)surplus of 10 units
Q2) A decrease in the supply of chocolate chips would usually result in a
A)higher equilibrium price and a lower equilibrium quantity
B)lower equilibrium price and a lower equilibrium quantity
C)lower equilibrium price and a higher equilibrium quantity
D)higher equilibrium price and a higher equilibrium quantity
E)decrease in the demand for chocolate chips
Q3) If supply increases and demand decreases, then equilibrium price will fall.
A)True
B)False
Q4) A simultaneous increase in supply and demand will always lead to an increase in the prices of a good.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Introduction to Macroeconomics
Available Study Resources on Quizplus for this Chatper
165 Verified Questions
165 Flashcards
Source URL: https://quizplus.com/quiz/49105
Sample Questions
Q1) If the U.S. price level decreases, the aggregate quantity of U.S. output demanded
A)decreases because U.S. products become cheaper relative to foreign products
B)decreases because U.S. products become more expensive relative to foreign products
C)increases because U.S. products become cheaper relative to foreign products
D)increases because U.S. products become more expensive relative to foreign products
E)decreases because household wealth and spending decrease
Q2) Who wrote The General Theory of Employment, Interest, and Money?
A)Adam Smith
B)Jean Baptiste Say
C)François Quesnay
D)John Maynard Keynes
E)Alfred Marshall
Q3) The Reagan administration's policies were aimed at managing aggregate demand.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: Tracking the Us Economy
Available Study Resources on Quizplus for this Chatper
213 Verified Questions
213 Flashcards
Source URL: https://quizplus.com/quiz/49107
Sample Questions
Q1) Depreciation is subtracted from GDP to get NDP. Depreciation
A)represents the value of leisure goods
B)measures changes in exchange rates
C)represents income that we earn but do not receive
D)represents investment undertaken merely to replace worn-out capital
E)measures the effects of government subsidy programs
Q2) A farmer grows wheat and sells it to a bakery for $5. The bakery bakes the wheat into bread, which it sells to a distributor for $20. The distributor sells the bread to a supermarket for $30, which sells the bread to customers for $50. Which of the following is true?
A)The value added by the distributor is $30.
B)The supermarket contributed more, in value added, than the bakery.
C)As a result of this activity, GDP rises by $50 minus the value added at each stage of production.
D)Counting the value added at each stage instead of the final selling price creates a serious problem of double counting.
E)The value added by the farmer is $20 because the wheat, which is worth $5, is necessary for each of the three remaining stages of production.
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: Unemployment and Inflation
Available Study Resources on Quizplus for this Chatper
201 Verified Questions
201 Flashcards
Source URL: https://quizplus.com/quiz/49106
Sample Questions
Q1) Inflation can only be caused by an increase in aggregate demand.
A)True
B)False
Q2) An example of structural unemployment caused by a change in tastes and preferences is
A)newspaper journalists
B)administrative assistants
C)lifeguards
D)steelworkers during recessions
E)None of the answers is correct
Q3) A sustained decrease in the price level is known as deflation.
A)True
B)False
Q4) The best example of a frictionally unemployed worker is one who
A)reduces productivity by causing frictions in a business
B)is laid off during a recessionary period in the economy
C)is in the process of voluntarily switching jobs
D)is discouraged and not actively seeking work
E)cannot find a job that matches with his skills
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Productivity and Growth
Available Study Resources on Quizplus for this Chatper
124 Verified Questions
124 Flashcards
Source URL: https://quizplus.com/quiz/49108
Sample Questions
Q1) A possible downside of industrial policy is that
A)the government cannot be trusted to identify emerging technologies
B)markets allocate scarce resources better than governments do
C)it could evolve into a government giveaway program
D)money and competitive advantages could go to the politically connected
E)All of the answers are correct
Q2) Since 1996,
A)U.S. productivity growth skyrocketed as more computers were installed
B)the computer sector has grown faster than the U.S. economy as a whole
C)spending on computers has been approximately constant as a fraction of total U.S. investment spending
D)the contribution of computers to U.S. productivity growth has been negative
E)computing technology did not improve enough to have a measurable impact on U.S. productivity
Q3) The diminishing slope of the per-worker production function reflects the law of diminishing marginal returns.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Aggregate Expenditure
Available Study Resources on Quizplus for this Chatper
187 Verified Questions
187 Flashcards
Source URL: https://quizplus.com/quiz/49109
Sample Questions
Q1) Which of the following would not shift the consumption function?
A)a change in household wealth
B)a change in the price level
C)a change in household disposable income
D)a change in the level of unemployment
E)a change in the rate of interest
Q2) Expectations that the price level will rise in the future cause consumption to rise today.
A)True
B)False
Q3) If the market interest rate equals 8 percent, the opportunity cost of the last new investment project undertaken would be approximately equal to
A)zero percent
B)4 percent
C)infinity
D)8 percent
E)16 percent
Q4) An increase in the interest rate would shift the consumption function upward. A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Aggregate Expenditure and Aggregate Demand
Available Study Resources on Quizplus for this Chatper
160 Verified Questions
160 Flashcards
Source URL: https://quizplus.com/quiz/49110
Sample Questions
Q1) Which of the following is not true at the equilibrium quantity of GDP demanded?
A)aggregate expenditure equals real GDP
B)planned investment equals actual investment
C)planned investment equals saving
D)planned investment is greater than unintended inventory adjustment
E)planned injections into the circular flow are less than planned leakages out of the flow
Q2) On the aggregate expenditure graph, if autonomous saving decreases by $15 billion,
A)the aggregate expenditure line shifts upward by $15 billion
B)planned investment increases by $15 billion
C)the aggregate expenditure line shifts downward by $15 billion
D)planned investment decreases by $15 billion
E)the equilibrium level of real GDP demanded decreases by $15 billion
Q3) If there are no unintended changes in inventories, the economy is at its equilibrium level of real GDP demanded.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
12
Chapter 11: Aggregate Supply
Available Study Resources on Quizplus for this Chatper
213 Verified Questions
213 Flashcards
Source URL: https://quizplus.com/quiz/49111
Sample Questions
Q1) Suppose that the real wage remained unchanged between year 1 and 2 but the nominal wage was $20 in year 1 and $18 in year 2. What is true about the price level?
A)It rose by 20 percent.
B)It rose by 25 percent.
C)It remained unchanged.
D)It fell by 10 percent.
E)It fell by 20 percent.
Q2) Beneficial supply shocks include all of the following except one. Which is the exception?
A)an abundant harvest that increases food supplies
B)discoveries of natural resources
C)changes in legislation favorable to production
D)technological advances
E)establishment of the Occupational Safety and Health Administration (OSHA)
Q3) The actual price level is assumed to be constant along a given short-run aggregate supply curve.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
13
Chapter 12: Fiscal Policy
Available Study Resources on Quizplus for this Chatper
242 Verified Questions
242 Flashcards
Source URL: https://quizplus.com/quiz/49112
Sample Questions
Q1) If autonomous net taxes decrease, which of the following correctly describes the effects?
A)Disposable income increases, consumption decreases, and saving decreases.
B)Disposable income increases, consumption increases, and saving increases.
C)Disposable income decreases, consumption increases, and saving increases.
D)Disposable income decreases, consumption decreases, and saving decreases.
E)There is no effect on either disposable income, consumption, or saving.
Q2) In an economy characterized by the aggregate expenditure line in Exhibit 12-2, how would a $100 increase in autonomous net taxes impact real GDP?
A)decrease real GDP by $200
B)decrease real GDP by $100
C)no impact on real GDP
D)increase real GDP by $100
E)increase real GDP by $200
Q3) If the economy is already producing at its potential,
A)the spending multiplier equals 1/(1 - MPC) in the long run
B)the spending multiplier is less than 1/(1 - MPC) in the long run
C)the spending multiplier is more than 1/(1 - MPC) in the long run
D)the spending multiplier equals zero in the long run
E)the aggregate demand curve is horizontal
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Federal Budgets and Public Policy
Available Study Resources on Quizplus for this Chatper
158 Verified Questions
158 Flashcards
Source URL: https://quizplus.com/quiz/49113
Sample Questions
Q1) Crowding in is more likely to occur, as a consequence of federal deficits, when
A)the economy is overheated
B)interest rates increase significantly
C)a contractionary gap exists
D)the deficits lower expectations about economic growth
E)an expansionary gap exists
Q2) Approximately __________ of the budget falls into expenditure categories that are determined by existing law.
A)one-fourth
B)one-third
C)half
D)two-thirds
E)three-quarters
Q3) In Keynes' philosophy of government budgets,
A)permanent deficits are desirable
B)permanent surpluses are desirable
C)the goal is to have a budget surplus
D)surpluses are appropriate during recessions
E)deficits are appropriate during recessions
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: Money and the Financial System
Available Study Resources on Quizplus for this Chatper
209 Verified Questions
209 Flashcards
Source URL: https://quizplus.com/quiz/49114
Sample Questions
Q1) The chairman of the Fed must resign when a new president is elected.
A)True
B)False
Q2) The Board of Governors
A)are elected by the House of Representatives to seven-year terms
B)are appointed for life by the President of the United States
C)are directly responsible to the Secretary of Treasury and the Comptroller's office
D)was disbanded by Roosevelt in the 1930s
E)consist of seven members appointed to 14-year terms by the president
Q3) Gresham's Law states that when different forms of commodity money circulate simultaneously (e.g., $1 gold coins and $1 silver coins),
A)the one with the more intrinsic ("commodity") value will disappear from circulation
B)the one with the lesser intrinsic ("commodity") value will disappear from circulation
C)both will eventually have to be withdrawn from circulation by the government
D)the resultant disruption in the money markets will cause inflation
E)the resultant disruption in the money markets will cause a recession
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: Banking and the Money Supply
Available Study Resources on Quizplus for this Chatper
229 Verified Questions
229 Flashcards
Source URL: https://quizplus.com/quiz/49115
Sample Questions
Q1) If you know the required reserve ratio and the total value of a bank's assets, then you know how much the bank is holding in reserves.
A)True
B)False
Q2) Narrowly defined, the M1 money supply consists primarily of A)coins
B)currency
C)cash held by banks
D)checkable deposits
E)money market mutual fund accounts
Q3) The immediate effect of a bank's purchase of U.S. government securities from the Fed is a(n)
A)decrease in the bank's liabilities
B)increase in the bank's liabilities
C)increase in the bank's required reserves
D)increase in the bank's actual reserves
E)decrease in the bank's actual reserves
Q4) All depository institutions are subject to the Fed's required reserve ratios.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 25: The Algebra of Income and Expenditure
Available Study Resources on Quizplus for this Chatper
17 Verified Questions
17 Flashcards
Source URL: https://quizplus.com/quiz/49099
Sample Questions
Q1) If Y = C + I + G + (X - M) and Y = $190, C = $100, I = $50 and G = $50 then, in equilibrium, X - M must equal
A)-$20
B)-$10
C)$10
D)$20
E)$50
Q2) If C = 10 + 0.8Y, a $100 increase in Y would increase consumption by A)$10
B)$20
C)$50
D)$80
E)$100
Q3) Consumption that is independent of the level of income is called autonomous consumption.
A)True B)False
Q4) Investment is the only autonomous spending component in aggregate expenditure. A)True B)False
Page 18
To view all questions and flashcards with answers, click on the resource link above.
Chapter 16: Monetary Theory and Policy
Available Study Resources on Quizplus for this Chatper
185 Verified Questions
185 Flashcards
Source URL: https://quizplus.com/quiz/49116
Sample Questions
Q1) A rising rate of inflation
A)makes people more willing to hold money as an asset
B)reduces the usefulness of money as a store of value and thus increases the velocity of money
C)increases the usefulness of money as a medium of exchange and thus reduces the velocity of money
D)is usually preceded by a reduction in the money supply
E)does not, apparently, have any effect on the velocity of money
Q2) A movement upward and to the left along the money demand curve is caused by
A)an increase in the interest rate
B)a decrease in the interest rate
C)a decrease in real GDP
D)an increase in real GDP
E)an increase in the average price level
Q3) If the price level rises, the money demand curve will shift to the right.
A)True
B)False
Q4) According to the equation of exchange, M * V = P * C.
A)True
B)False
Page 19
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Macro Policy Debate: Active or Passive
Available Study Resources on Quizplus for this Chatper
190 Verified Questions
190 Flashcards
Source URL: https://quizplus.com/quiz/49117
Sample Questions
Q1) The inflation associated with the oil embargoes of the 1970s resulted in
A)reduced unemployment because aggregate demand increased
B)reduced unemployment because aggregate demand fell
C)increased unemployment because aggregate demand increased
D)increased unemployment because aggregate demand fell
E)increased unemployment because aggregate supply fell
Q2) International evidence suggests that
A)contrary to theory, there is little relationship between inflation and money supply growth
B)the countries with the most independent central banks are the countries with the lowest inflation rates
C)contrary to theory, there is little relationship between central bank independence and price stability
D)the countries with the least independent central banks are the countries with the lowest inflation rates
E)the most independent central banks are in Spain and Italy
Q3) The effectiveness lag for monetary policy is short.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Page 20
Chapter 26: The Algebra of Demand-Side Equilibrium
Available Study Resources on Quizplus for this Chatper
22 Verified Questions
22 Flashcards
Source URL: https://quizplus.com/quiz/49121
Sample Questions
Q1) The __________ the proportional tax rate, t, or the __________ the marginal propensity to import, m, the __________ the spending multiplier.
A)higher, higher, larger
B)higher, higher, smaller
C)higher, lower, smaller
D)lower, lower, smaller
E)lower, higher, larger
Q2) Suppose that government purchases increase by $200 and at the same time autonomous net taxes are increased by $200. If there are neither income taxes nor net exports, the change in equilibrium real GDP demanded will
A)depend on the value of the MPC
B)be a $200 decrease
C)be a $200 increase
D)be equal to zero, since higher taxes exactly offset higher government spending
E)be an increase by some amount greater than $200
Q3) The balanced budget multiplier is always negative.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 18: International Trade
Available Study Resources on Quizplus for this Chatper
163 Verified Questions
163 Flashcards
Source URL: https://quizplus.com/quiz/49118
Sample Questions
Q1) An effective import quota is one that
A)reduces imports to zero
B)increases exports
C)reduces the price of an imported good below the world price
D)limits imports to less than what would be imported under free trade
E)reduces demand for a good to zero
Q2) In Exhibit 18-4, with a tariff of $0.50 per unit and a world price of $1.00,
A)25 units will be exported
B)25 units will be imported
C)50 units will be exported
D)50 units will be imported
E)10 units will be exported
Q3) If the United States has an absolute advantage in producing computer components, it should export them worldwide.
A)True
B)False
Q4) In Exhibit 18-1, the United States has a comparative advantage in the production of rice.
A)True
B)False
Page 22
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: International Finance
Available Study Resources on Quizplus for this Chatper
231 Verified Questions
231 Flashcards
Source URL: https://quizplus.com/quiz/49119
Sample Questions
Q1) If the purchasing power parity theory were literally true
A)we should see some nations devaluing their currencies relative to the U.S. dollar while other nations revalue their currencies
B)the price of a traded good should be the same everywhere in the world
C)the price of a Big Mac should be the same everywhere in the world
D)the exchange rate should be the same everywhere in the world
E)prices should tend toward equality with exchange rates
Q2) A rightward shift of the Canadian demand curve for foreign exchange will
A)decrease the price of foreign exchange in Canada
B)decrease the value of the Canadian dollar
C)increase the value of the Canadian dollar
D)make foreign goods less expensive in terms of Canadian dollars
E)make Canadian goods more expensive in terms of foreign exchange
Q3) Bank deposits denominated in Mexican pesos are an example of foreign exchange.
A)True
B)False
Q4) The Bretton Woods agreement established the gold standard.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 23
Chapter 20: Economic Development
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/49120
Sample Questions
Q1) Which of the following is true about GNP?
A)includes profits earned by a Mercedes factory in Alabama
B)excludes profits earned by General Electric in India
C)measures the market value of all goods and services produced by resources supplied the home country's residents and firms, regardless of the location of the resource
D)stands for Generally Nice Products
E)used by countries to classify the World Bank
Q2) The first step in gradualism is
A)the privatization of larger industrial sectors
B)the phasing out of money-losing enterprises
C)large industrial enterprises quickly finding market-clearing prices
D)the thriving of small-scale capitalism
E)state-owned enterprises running more like businesses to maximize profit
Q3) J. Vernon Henderson's night light approach to measuring economic growth is probably most useful where the quality of economic data is poor or nonexistent.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
24
Chapter 21: National Income Accounts
Available Study Resources on Quizplus for this Chatper
34 Verified Questions
34 Flashcards
Source URL: https://quizplus.com/quiz/49097
Sample Questions
Q1) In Exhibit 6-5, Gross private domestic investment is equal to
A)$30 billion
B)$40 billion
C)$60 billion
D)$70 billion
E)$80 billion
Q2) Disposable Income is Personal Income minus personal taxes.
A)True
B)False
Q3) Given the following data: depreciation = $450; net indirect business taxes = $400; employee compensation = $3,000; proprietor's income = $200; corporate profits = $400; net interest = $300; rental income = $50; national income equals
A)$3,100
B)$3,500
C)$3,550
D)$3,950
E)$4,400
Q4) Personal income minus personal taxes equals disposable income. A)True B)False
Page 25
To view all questions and flashcards with answers, click on the resource link above.
Chapter 22:Understanding Graphs
Available Study Resources on Quizplus for this Chatper
65 Verified Questions
65 Flashcards
Source URL: https://quizplus.com/quiz/49098
Sample Questions
Q1) Refer to Exhibit 1-16. Which graph illustrates a negative relationship between variable X and variable Y initially but then a positive relationship?
A)a
B)b
C)c
D)d
E)e
Q2) In Exhibit 1-2, at y = 14, the
A)value of x is larger on curve A than on curve B
B)value of x is smaller on curve A than on curve B
C)value of x is the same on curve A as on curve B
D)slope of line A is negative
E)slope of line B is positive
Q3) The statement that there is a direct relation between x and y means that A)x and y move in the same direction
B)x causes y
C)y causes x
D)either y causes x or x causes y
E)the causal connection between x and y is immediate
To view all questions and flashcards with answers, click on the resource link above. Page 26
Chapter 23:Variable Net Exports
Available Study Resources on Quizplus for this Chatper
27 Verified Questions
27 Flashcards
Source URL: https://quizplus.com/quiz/49096
Sample Questions
Q1) An increase in U.S. consumers' incomes will decrease U.S. exports.
A)True
B)False
Q2) An increase in the value of the U.S. dollar relative to foreign currencies would lead to
A)an increase in U.S. exports and a decrease in U.S. imports
B)a decrease in U.S. exports and an increase in U.S. imports
C)an increase in both U.S. imports and U.S. exports
D)a decrease in both U.S. exports and U.S. imports
E)no change in exports and an increase in U.S. imports
Q3) In 2007, the value of the dollar declined, which should have __________ exports, __________ imports, and shifted the net export function __________.
A)increased, decreased, downward
B)increased, increased, upward
C)increased, decreased, upward
D)decreased, decreased, downward
E)decreased, increased, downward
Q4) U.S. economic growth does not contribute to a U.S. trade deficit.
A)True B)False
To view all questions and flashcards with answers, click on the resource link above. Page 27
Chapter 24: Variable Net Exports Revisited
Available Study Resources on Quizplus for this Chatper
35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/49100
Sample Questions
Q1) If net exports increase by $450 billion at every level of income, equilibrium real GDP demanded will
A)increase by $450 billion
B)decrease by $450 billion
C)increase by more than $450 billion because of the multiplier effect
D)increase by less than $450 billion
E)decrease by more than $450 billion because of the multiplier effect
Q2) Which of the following is true concerning the impact of net exports in the model with AE = C + I + NX + G?
A)Net exports are a leakage from the economy if imports exceed exports.
B)Net exports are always positive.
C)Net exports are negative because exports are assumed to be autonomous.
D)Net exports must be negative if planned investment is positive.
E)Net exports are an injection into the economy if imports equal exports.
Q3) In Exhibit 10-8, the spending multiplier equals A)1.43
To view all questions and flashcards with answers, click on the resource link above. Page 28