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Econ 207 Final Exam Review

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Which type of unemployment is not a part of natural unemployment?

a) Cyclical
b) Structural
c) Frictional
d) None of the above

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Terms in this set (42)

Which type of unemployment is not a part of natural unemployment?

a) Cyclical
b) Structural
c) Frictional
d) None of the above

If disposable income increases by $100 and savings increased by $25, we may conclude that

a) The MPC is 0.75.
b) The MPS is 4.
c) Autonomous consumption is $15
d) A change in disposable income is induced by a change in consumption.

a) The MPC is 0.75

The initial aggregate expenditure function is given by C + I + G'. An increase in government spending shifts the aggregate expenditure function to C + I + G. The MPC is:

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a) 0.8
b) 0.75
c) 0.5
d) 0.9

If total planned spending AE exceeds GDP, we expect that

a) Inventories will be falling.
b) Inventories will be rising.
c) GDP will be falling.
d) Government expenditures must be rising.

a) Inventories will be falling.

Which of the following is a key function of a country's Central Bank?

a) It conducts fiscal policy.
b) It sets an upper-bound on lending.
c) It clears interbank payments.
d) It is the borrower of last resort.

c) It clears interbank payments.