There total 30 Questions. First 10 is shown here. The rest are in the attachment with solutions.
1. the largest source of household income is in the U.S. is obtained
a. stock dividends
b. wages and salaries
c. interest earnings
d. rental income
2.the market where business sell goods and services to households and the government is called
a. goods market
b. factor market
c. capital market
d. money market
3.real gross domestic product is best defined as
a. the market value of intermediate goods and services produced in an economy including exports
b. all goods and services produced in an economy, stated in prices in a given year and multiplied by quantity
c. the market value of all final goods and services produced in an economy stated in the prices of a given year
d. the market value of goods and services produced in an economy stated in current year prices
4. underemployment includes
a. who work off the books to avoid paying taxes
b. who are working part time or not using all their skills at a fulltime job
c. who are tired of looking for a job soo they quit looking but still want one
d. whose skills are not in demand anymore
5.the bureau of economic analysis is responsible for whicj of the following
a. setting interest rates
b. managing the money supply
c. calculating the US gross domestic product
d. paying unemployment benefits
6.the federal reserve provides which of the following data
a. federal funds rate
b. stock price of GE
c. bond yields of corporation
d. debt to GDP of Ireland
7. Consider if the government instituted a 10% income tax surcharge. In terms of the AS/AD model this change should have
a. shifted the AD curve to the left
b. shifted the AD curve to the right
c. made the AD curve flatter
d. made the AD curve steeper
8.if the depreciation of a country’s currency increases it aggregate expenditures by 20, the AD curve will
a. shift right by more than 20
b. shift right by less than 20
c. shift right by exactly 20
d. not shift at all
9. Aggregate demand management policies are designed most directly to
a. minimize unemployment
b. minimize inflation
c. control the aggregate level of spending in the economy
d. prevent budget deficits or surpluses
10.suppose that consumer spending is expected to decrease in the near future. If output is at potential output, which of the following policies is most appropriate according to the AS/AD model
a. an increase in government spending
b. an increase in taxes
c. a reduction in government spending
d. no change in taxes or government spending.
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