Question types

Start with

Question limit

of 91 available terms

Advertisement Upgrade to remove ads
Print test

5 Written questions

5 Matching questions

  1. Transfer Payments
  2. Velocity of Money
  3. Upward sloping supply curve
  4. Ricardian equivalence
  5. Lower price level:
  1. a average number of times a dollar is used to purchase final goods and services during a year.
  2. b -increase the purchasing power of money
    -Leads to a lower real interest rate, which increases consumption and investment
    -make domestically produced goods less expensive relative to foreign goods
  3. c transfers of income from some individuals to others (social security, unemployment benefits, health care)
  4. d belief that a tax reduction financed with government debt will exert no effect on aggregate demand
  5. e direct positive relationship between the price of a good or service and amount suppliers are willing to produce

5 Multiple choice questions

  1. difference between the maximum amount consumers would be willing to pay and the amount that they actually pay
    -below demand curve but above the price
  2. expansionary fiscal policy during a recession will stimulate aggregate demand and pull us out of a recession.
    -Prices are sticky, Economy can't correct itself, Demand creates supply
  3. results from changes in the economy and imperfect information that prevents workers from being immediately matched up with existing job openings
  4. built in features tha automatically promote a budget deficit during a recession and a budget surplus during an expansion (without a change in policy
  5. -Resource Price
    -Changes in expected inflation
    -Supply Shocks

5 True/False questions

  1. Effect of Unanticipated expansionary monetary policyshift in monetary policy designed to stimulate aggregate demand.


  2. Loanable funds market (Demand)-Movement along the curve due to a change in PRICE of a good


  3. Real Interest Ratepercentage of the amount borrowed that must be paid to the lender in addition to the repayment of the principle.


  4. GDPM1 + savings deposits + time deposits(less than 100, 000) + money market mutual funds


  5. Money supply curveindicates the inverse relationship between the interest rate and the quantity of money people want to hold.
    -downward sloping because as the interest rate increases, people will hold less money