umuc econ201 quiz 2 latest 2015 december 31st

*********

*******

** ******* ********

1

* * 1 point
*********************** *******

****

the ******* ** ********* ** its potential *** unemployment ** ** *** ******* **** of ************* ** Stagflation
**

The

******** ****

*******

** *** ******* ***** *******

**

**** ********** GDP
******** *

*

* * ****** Melanie

*******

** **** *** ** *** annual

********

for ** ***** so *** would **** a down ******* *** * ***** ***** * ***** what ****** ** *** ******* would cause ** ******** ** *** ********** ***** ** the funds *** *** ******* to save?
a) ************ b) depression
c) ********** ** ********** ********

*

* *

1

point
**

***

price *****

**

**** *****

produce

** rising across ** ******* ***

***

costs ** production are constant ****** ** ****** profits **** induce ******** production
** * ******** ** industries **** ***** *******

****

******* ** increase ** quantity ******** *********

**

****** ** *** maximum potential GDP will ** exceeded
Question

4

* * * ****** What **** ** ****

**

******** the maximum ******** **** ** economy ***

*******

in *** context ** *** ********

inputs

market *** ***** institutions?
** aggregate supply
** potential **** ** GDP deflator
d) AS ****** Chapter ** ********* Question * 1 / * ******

***

graph ***** ******

to

* *********** ********

**

********** ****** *****

******

them ** *****

*******

level in **

*****

***** ** *** ********* is ******

**

******** ** macroeconomic ****** **** ******** ** *** short **** ** *** ******* **** ********** ***** ******** ******* c) inflationary pressures **** be ***** d) ******** ************ **** *********

*******

12 ******* ******** 6 * * * ****** **

*

Phillip ***** shows **** ************ ** *** ***

inflation

** **** ** *** ******* ****

****

********* a) ** ********* **

***

*********** ****** **

**

********* ** *** potential **** **

is

********* ** a point where output ** **** **** ********* **** ** is ********* ** a ***** ***** output

**

less **** potential **** ******** * *

/

1 ****** *** *********** ******** ** labor

and

the equilibrium **** level ******** ****** ** labor demand ****** ** *** ****

**

***** *** ********* ** labor ****** shifts ** *** **** ** ***** are

*********

** ***** ****** shifts ** ***

right

** ***** *** ********* ** ***** ****** shifts ** the ***** **

*****

*** ********* ******** * * * 1 ****** According to *************

******

evidence **** **** ************ may ** accompanied by *** ********* ***

low

************ *** be *********** by **** ********* is ********* ** the:

**

********* ***** ******** ** Keynesian ********* trade-off ****** ** ********* ********

*****

********* ** neoclassical ****************** ****** *******

**

******** *********** ******** * * * * ****** *** ******* ** in * ********* *** *** government ***** ** increase ****** ** *** multiplier ****** * ***

***

********** ********* ******** **

***

how **** will ****** ********

by?

** 100
b) **** **

****

d) 50
******* 12

***

** ***** ********* ********

**

/ 1 ****** ********* ** ***

*******

***** ** *** ********* ** * **** *********** ** The ******** in ****** *** ** *** *** **** about because ** ***** ****** of taxation
b) *** ******** in supply ***

**

*** may

****

***** *******

of

********* *****

*******

** ***

********

in ****** *** ** *** ***

******

**** ********* ********** ********* d)

***

******** in ****** (Q1 ** *** *** ****** **** ********* ****** of

taxation

******* ** ******* Question ** * * * ****** ** the central **** ********* the ****** **

********

***** *** ******** to **** from 20% ** 10% then:
a) both *** ***** ********** and

***

supply ** ***** ** the ******* will ********* ** **** *** ***** multiplier ***

the

****** of ***** ** *** economy **** ********* ** *** ***** ********** will ******** and

***

****** ** money

in

*** economy **** ********* d) ***

money

multiplier will increase *** *** supply ** ***** ** *** economy **** ********* ******** ** * * 1 point

If

Brent uses *** credit card to ******** * *** television **** *** ***** ** ***

the

******** ** ***** from:
** *** credit card ************* ** ****** b) *** M1 ******

**

his M2 ****** ** *** ****** **** ************* M2 funds
******** ** 1 / 1 ******

Which

category ** *** money ****** would *** ** ************ to ** you invest ** money ******

*******

a) ******* ********* b) *** c)

****

********* ** *** ******* ** **** ******* sheet
******** ** * * * point
******* **** holds ******** ** **** *******

**

***** reserves ** *** ******* ** has

*********

********** ***** ***** ***

*******

The ******* ***** **

***

loans ** **** at market value **

****

million What ** *** ***** of

***

******* bank’s liabilities?
a) **** ******** ** **** million
** *** million
d) ** ******** Chapter ** Random

********

** * *

*

****** ****

*

***** ** ________________

******

******** ************

****

that *** ****** ** ******

***

********** **** **** be ********** **

aggregate

******* ** **** ******* c) ********* ******* ** ***** ******* Question ** 1 * * point
*** do neoclassical ********** tend ** *** ********** **** ******** ** ********* ****** **** on fighting *********** a) government ******* **** ** recession and ******** ************* ** price

and

**** ********** **

**********

** the *****

****

** ****** *****

**

********* GDP **********

***

**** of **********

**

******** of ****** is ********** determined

**

long-term ******* Chapter 15 ******* ******** 17 * * * ****** ********* to *** ******** ****** if constant ****** **

the

money ****** **

combined

**** fluctuating ********

which

** *** following

**

**** likely to

********

a) *********** ******** to ******* and

finance

** ************* rises *** ***** in ******* GDP
c) ******** ** credit ***** above where ** *********

be

** ******** ****** **** ****** ********** ********** ******** **

*

1 ****** **** a ******* **** takes ****** ** decrease ***

*****

****** *** ******** the interest **** ** is following:
** *

quantitative

****** ******* ** * expansionary ******** ******* ** * contractionary

monetary

******* d) a

loose

******** ******* ******** ** * 1

******

When *** ******* **** ****** *** reserve *********** on deposits:
** *** money ****** ********* *** ******** ***** ********* ** *** money supply ********* *** ********

*****

increase
** *** money ****** *** interest

*****

********* ** the ***** ****** *** ******** rates

*********

******* ** problems
******** ** * * ****** ** The

diagram

***** ****** ** a private ****** *******

In

this ******** *** *********** ***

****

** *** ******** b) ******* *** and **** billion
** **** ******** ** *** billion at all ******


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