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This document of ECO 372 Final Exam consists of:
1) The largest source of household income in the U.S. is obtained from2) The market where business sell goods and services to households and the government is called the3) Real gross domestic product is best defined as4) Underemployment includes people 5) The Bureau of Economic Analysis is responsible for which of the following?6) The Federal Reserve provides which of the following data?7) Consider if the government instituted a 10 percent income tax surcharge. In terms of the AS/AD model, this change should have8) If the depreciation of a country’s currency increases its aggregate expenditures by 20, the AD curve will 9) Aggregate demand management policies are designed most directly to10) 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?11) According to Keynes, market economies12) The laissez-faire policy prescription to eliminate unemployment was to13) In the AS/AD model, an expansionary monetary policy has the greatest effect on the price level when it14) The Federal funds rate15) What tool of monetary policy will the Federal Reserve use to increase the federal funds rate from 1% to 1.25%?16) If the Federal Reserve increases the required reserves, financial institutions will likely lend out17) Suppose the money multiplier in the U.S. is 3. Suppose further that if the Federal Reserve changes the discount rate by 1 percentage point, banks change their reserves by 300. To increase the money supply by 2700 the Federal Reserve should18) If the Federal Reserve reduced its reserve requirement from 6.5 percent to 5 percent. This policy would most likely19) A country can have a trade deficit as long as it can20) A weaker dollar21) In the short run, a trade deficit allows more consumption, but in the long run, a trade deficit is a problem because22) Considering an economy with a current trade deficit and considering only the direct effect on income, an expansionary monetary policy tends to23) The balance of trade measures the24) When a country runs a trade deficit, it does so by25) Expansionary fiscal policy tends to26) In considering the net effect of expansionary fiscal policy on the trade deficit, the27) If U.S. interest rates fall relative to Japanese interest rates and Japanese inflation falls relative to U.S. inflation, then the28) Expansionary monetary policy tends to29) The U.S. has limits on Chinese textile imports. Such limits are an example of30) Duties imposed by the U.S. government on imported Chinese frozen and canned shrimp are an example of
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