ECO 372 Final Exam

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1.The largest source of household income is in the U.S. is obtained

2.The market where business sell goods and services to households and the government is called

3.real gross domestic product is best defined as

4. underemployment includes

5.the bureau of economic analysis is responsible for whicj of the following

6.the federal reserve provides which of the following data

7. Consider if the government instituted a 10% income tax surcharge. In terms of the AS/AD model this change should have

8.if the depreciation of a countryТs currency increases it aggregate expenditures by 20, the AD curve will

9. Aggregate demand management policies are designed most directly to

10.suppose that consumer spending is expected to decrease in the near future. If output is at potential output, which of the following policies is most appropriate according to the AS/AD model

11. According to Keynes, market economies

12) The laissez-faire policy prescription to eliminate unemployment was to

13) In the AS/AD model, an expansionary monetary policy has the greatest effect on the price level when it

14) The Federal funds rate

15) What tool of monetary policy will the Federal Reserve use to increase the federal funds rate from 1% to 1.25%?

16) If the Federal Reserve increases the required reserves, financial institutions will likely lend out

17) Suppose the money multiplier in the U.S. is 3. Suppose further that if the Federal Reserve changes the discount rate by 1 percentage point, banks change their reserves by 300. To increase the money supply by 2700 the Federal Reserve should

18) If the Federal Reserve reduced its reserve requirement from 6.5 percent to 5 percent. This policy would most likely

19) A country can have a trade deficit as long as it can

20) A weaker dollar

21) In the short run, a trade deficit allows more consumption, but in the long run, a trade deficit is a problem because

22) Considering an economy with a current trade deficit and considering only the direct effect on income, an expansionary monetary policy tends to

23) The balance of trade measures the

24) When a country runs a trade deficit, it does so by:

25) Expansionary fiscal policy tends to

26) In considering the net effect of expansionary fiscal policy on the trade deficit, the

27) If U.S. interest rates fall relative to Japanese interest rates and Japanese inflation falls relative to U.S. inflation, then the

28) Expansionary monetary policy tends to

29) The U.S. has limits on Chinese textile imports. Such limits are an example of

30) Duties imposed by the U.S. government on imported Chinese frozen and canned shrimp are an example of

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