ECON 103 EXAM QUESTIONS & ANSWERS
The development of money as a medium of exchange has facilitated - Answers -Money
eliminates double coincidence of wants
If interest rates are lower than what individuals consider normal, they will - Answers -
increase their speculative money demand
The interest rate that banks are charged when they borrow from Fed - Answers -
discount rate
Simultaneous increase in the money supply and reduction in government spending. -
Answers -r will decrease
Expansionary Fiscal policy - Answers -AE ^, Y ^, Md ^, r ^, I v, AE v
Increase in the money supply will cause planned investment to ______ and
consumption to _____ - Answers -Increase, increase
Demand-Pull inflation is characterized by - Answers -AD curve shifting right
Factors that lad to increases in aggregate supply include - Answers -lower wages,
more labor availability, tax cuts to businesses
Its important to distinguish between the short run and long run when we are discussing -
Answers -aggregate supply
Suppose the wage in the labor market is $8 and more people entered the labor force.
This means that - Answers -If wages are sticky, the unemployment rate increases
The Phillips Curve depicts the relationship between - Answers -Inflation and
Unemployment
If you hear a person saying "i lost my job at the gm plant because car manufacturing is
slow due to recession" this is ____ unemployment - Answers -Cyclical
The _____ lag is the amount of time policymakers need to become aware of the
existence of a change in the economic activity - Answers -Recognition
Which of the following shifts the money demand curve to the left? - Answers -decrease
in income
Which of the following is not a determinant of planned investment - Answers -
government expenditures
The development of money as a medium of exchange has facilitated - Answers -Money
eliminates double coincidence of wants
If interest rates are lower than what individuals consider normal, they will - Answers -
increase their speculative money demand
The interest rate that banks are charged when they borrow from Fed - Answers -
discount rate
Simultaneous increase in the money supply and reduction in government spending. -
Answers -r will decrease
Expansionary Fiscal policy - Answers -AE ^, Y ^, Md ^, r ^, I v, AE v
Increase in the money supply will cause planned investment to ______ and
consumption to _____ - Answers -Increase, increase
Demand-Pull inflation is characterized by - Answers -AD curve shifting right
Factors that lad to increases in aggregate supply include - Answers -lower wages,
more labor availability, tax cuts to businesses
Its important to distinguish between the short run and long run when we are discussing -
Answers -aggregate supply
Suppose the wage in the labor market is $8 and more people entered the labor force.
This means that - Answers -If wages are sticky, the unemployment rate increases
The Phillips Curve depicts the relationship between - Answers -Inflation and
Unemployment
If you hear a person saying "i lost my job at the gm plant because car manufacturing is
slow due to recession" this is ____ unemployment - Answers -Cyclical
The _____ lag is the amount of time policymakers need to become aware of the
existence of a change in the economic activity - Answers -Recognition
Which of the following shifts the money demand curve to the left? - Answers -decrease
in income
Which of the following is not a determinant of planned investment - Answers -
government expenditures
