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6 Written questions

6 Multiple choice questions

  1. real-balances effect
    interest rate effect
    foreign purchases effect
  2. input prices
    productivity
    legal-institution
  3. Change in consumption/Disposable income
  4. Operating costs
    Business taxes
    Technological changes
    Stock of capital goods
    Planned inventory changes
    Expectations
  5. Consumption/Disposable income
  6. deliberate manipulation of taxes and government spending by the Congress to alter real domestic output and employment, to control inflation, and to stimulate economic growth during a particular period of time

5 True/False questions

  1. Contractionary 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

          

  2. Expansionary 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

          

  3. Consumptionleftward shift in the AS curve

          

  4. nondiscretionary or built-in stabilization policydeliberate manipulation of taxes and government spending by the Congress to alter real domestic output and employment, to control inflation, and to stimulate economic growth during a particular period of time

          

  5. Relationship between changes in spending vs. the changes in real GDP.input prices
    productivity
    legal-institution