Macroeconomics Questions

Arthur is an unskilled worker who is currently unemployed. He has been offered a job that pays $40 a day, but he is currently receiving unemployment insurance benefits equal to $50 a day, so he chooses not to accept the job and to continue looking for a better job. Arthur is ________ unemployed.

When the central bank buys $1,000,000 worth of government bonds from the public, the money supply:

Workers in durable-goods industries are ________ workers in service industries to lose their jobsduring a recession

According to the quantity equation, if velocity and real GDP are constant, and the Federal Reserve increases the money supply by 5 percent, then the price level:

Double coincidence of wants is avoided if money is used as a:

Financial intermediaries, such as commercial banks, help borrowers, particularly small borrowers, by:

The proposition each extra percentage point of cyclical unemployment is associated with about a 2 percent widening of a negative output gap, measured in relation to potential output, is known as

If average labor productivity in two countries is the same, average living standards will be lower in the country with:

If the government lowers taxes in response to a recession, the government is engaging in what economists call:

The point where the long-run aggregate supply curve intercepts the horizontal axis:

The long-run aggregate supply curve is vertical because in the long run:

When the aggregate price level increases, the purchasing power of many assets falls, causing a decrease in consumer spending. This is known as the _____ effect and is a reason why the _____ curve slopes _____.

Suppose the marginal propensity to consume changes from 0.75 to 0.90. How will this affect the consumption function?

If the MPS = .1, then the value of the multiplier equals:

In an economy with no international trade, government expenditure, transfers, or taxes, planned aggregate spending is equal to:

When the economy is on the short-run aggregate supply curve and to the left of the long-run aggregate supply curve, actual aggregate output will eventually equal potential output as:

Use Table 16- 1. When disposable personal income is $400, the level of personal saving is:

Suppose that a presidential candidate who promised large personal income tax cuts is elected. Which of the following is most likely to occur?

If the planned aggregate spending rises by $25 billion and the MPC is .8, then GDP changes by:

Use the "Shift of the Aggregate Demand Curve" Figure 17-2. A movement from point C on AD2 to point A on AD1 may have been the result of :