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6 Written questions

6 Multiple choice questions

  1. Change in savings/Disposable income
  2. the change in government expenditures or taxes which occurs automatically as a result of existing laws
  3. input prices
    productivity
    legal-institution
  4. Wealth
    Borrowing
    Expectations
    Real interest rates
  5. Operating costs
    Business taxes
    Technological changes
    Stock of capital goods
    Planned inventory changes
    Expectations
  6. an increase in taxes or decrease in government spending or both, so that the net effect on aggregate demand is a decrease in net government spending

5 True/False questions

  1. Instability of investmentleftward shift in the AS curve

          

  2. Marginal Propensity to ConsumeChange in consumption/Disposable income

          

  3. discretionary fiscal policyan increase in taxes or decrease in government spending or both, so that the net effect on aggregate demand is a decrease in net government spending

          

  4. 3 reasons for downward slope of AD curvereal-balances effect
    interest rate effect
    foreign purchases effect

          

  5. Consumptionleftward shift in the AS curve

          

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