TMU Macroeconomics Final Exam Review Kahoot (Ch. 11- 21) 100% Solved

T/F- The level of economic activity in a society tends to grow over time. - True Under which circumstance with a bank pay less for a loan on the secondary market? - The borrower is a firm who has recently declared bankruptcy all of the following are ways in which a bank could increase its reserve requirement, except for: - Buying bonds from the FED Which of the following tools is the FED most likely to use in order to decrease the money supply? - increased interest rates to slow aggregate demand T/F- the money multiplier, depends upon individuals and businesses redepositing their loans and other banks - True A countries economy is currently in long run equilibrium (neoclassical zone). An increase in AD has what LR effect? - Price levels increase Hyperinflation is a period of high inflation in high unemployment - False (stagflation) Which of the following will shift the aggregate supply curve? - change in costs of inputs of production which of the following would not impact AD in the short run? - Increase in the minimum wage T/F- AD/AS equilibrium, will be closer to potential GDP during period of expansion, and further away during recessions - True according to the Kinsey in view, _________ may cause a recession, but not inflation. - A decrease in exports, ceteris paribus T/F- Keynes believed that investment spending was the most Variah bowl of all components of aggregate demand - True Which of the following would likely cause increase in aggregate demand - (all of the above) an increase in the overall level of wages in an economy, the stock market has risen nearly 1000 points and is increased in value, interest rates are relatively low in the FED has no plans to increase T/F- When imports become more expensive, import spending decreases, and when they become less expensive, spending increases. - True Which statement is true as it relates to the neoclassical perspective? - The government should focus on long-term growth and controlling