2326 ml '" E) B docs.google.com If government spending increases on 1 point public schools by $10 million, as a result investment in private schools go down by $3 million, this is an example of: * O None of the given options 0 Incomplete Crowding out 0 Complete Crowding out 0 Zero crowding out When does the multiplier work to 1 point increase Real GDP? * Increase in autonomous spending along 0 with absence of idle resources in the economy. Increase in autonomous spending along 0 with presence of idle resources in the economy. 0 Increase in consumption along with absence of idle resources in the economy. 0 Increase in consumption along with presence of idle resources in the economy. If Autonomous Consumption 1 point increases by $50, what is the change in Real GDPW 2326 all '" E) H docs.google.com What is Long Run Supply Curve 1 point (LRAS)? * The vertical line at the Natural Real GDP 0 that is produced unemployment in long run equilibrium. The vertical line at the Natural Real GDP 0 that is produced at natural rate of unemployment in short run equilibrium. The vertical line at the Natural Real GDP 0 that is produced at natural rate of unemployment in long run equilibrium. The vertical line at the Real GDP that is 0 produced at natural rate of unemployment in long run equilibrium. What will happen will marginal tax 1 point rates are increased? What if the increase is permanent? * O AD will shift left 0 SRAS and LRAS will shift right 0 SRAS and LRAS will shift left. 0 AD will shift right Page 2 of 2 Never submit passts. 2226 all '5' E)' B docs.google.com Suppose the value of Bangladeshi 1 point Taka has depreciated. What would this mean? * 0 Exports will go up, imports will go down, and aggregate demand will shift left. Exports will go up, imports will go down, and aggregate demand will shift right. aggregate demand will shift right. Exports will go down, imports will go up, 0 Exports will go up, imports will go up, and O and aggregate demand will shift left. Which of the following is not implied 1 point by Say's Law? * 0 Supply creates its own demand. 0 There is an overproduction or underproduction of goods. 0 Increase in savings is equal to increase in investment. 0 None of the given options Given the following Year, Price and 1 point Quantity, which of the following statements are correct? * VA- bv:AA nil-nulli- 2:26 all '" E} B docs.google.com Which of the following statements are 1 point true about an economy with an inationary gap? * 0 Real GDP is greater than Natural Real GDP, there is a surplus in the labour market. Real GDP is greater than Natural Real GDP, there is a shortage in the labour market. there is a shortage in the labour market. Real GDP is less than Natural Real GDP, 0 Real GDP is less than Natural Real GDP, 0 there is a surplus in the labour market. Which of the following does not 1 point impact consumption? * O Wealth 0 Foreign Real Income. 0 Interest Rate 0 Taxes What is Long Run Supply Curve 1 point (LRAS)? * The vertical line at the Natural Real GDP 0 that is produced unemployment in long run n equilibrium. 2326 nil '" E) B docs.google.com If Autonomous Consumption 1 point increases by $50, what is the change in Real GDP given MPC = 0.80? * At an income of $100,000, I spent 1 point $90,000 on consumer goods. When my income rose to $200,000, I spent $160,000 on consumer goods. My marginal propensity to consume is: * Suppose the value of Bangladeshi 1 point Taka has depreciated. What would this mean? * Exports will go up, imports will go down, B O and aggregate demand will shift left. 2:26 nllll '" E) H docs.google.com Given the following Year, Price and 1 point Quantity, which of the following statements are correct? * Quantity 50 70 00 GDP for Year 3 = 750, Real GDP for Year 3 = 1500. GDP for Year 1 = 750, Real GDP for Year 3 = 1500. GDP for Year 1 = 750, Real GDP for Year 2 = 1500. GDP for Year 2 = 750, Real GDP for Year 3 = 1500. 0000 What was the Great Depression 1 point caused by? * A credit inspired economic bubble, dust O storms which were preceded by a stock market boom. 0 A credit inspired economic bubble only. 0 None of the given options 0 A credit inspired economic bubble and dust storms. 2:26 docs.google.com Multiple Choice Questions When is fiscal policy most effective? * 1 point O There are no lags and complete crowding out. There are long lags and zero crowding out. There are no lags and zero crowding out. O There are long lags and complete crowding out. Which of the following statements are 1 point true about an economy with a recessionary gap? * O Unemployment rate is higher in the short run, price level and wages are rising O Unemployment rate is higher in the short run, price level and wages are falling. O Unemployment rate is lower in the short run, price level and wages are rising. O Unemployment rate is lower in the short run, price level and wages are falling. Which of the following statement 1 point would the Keynesians agree on? *