Macroeconomics questions and answers in July 2021

Suppose a commercial banking system has $50,000 of outstanding checkable deposits and actual reserves of $9,000. If the reserve ratio is 10 percent, the banking system can expand the supply of money b...
Government Spending Tax Revenues GDP $456 $425 $2,668 The accompanying table gives budget information for a hypothetical economy. Assume that all budget surpluses are used to pay down the public debt....
For each prompt below, carefully and thoroughly follow the directions. For the graphs, be certain to accurately label all axes, curves, and points as appropriate. Show your work for any calculations. ...
Complete the sentence: During a deflationary period, a) the real interest rate is less than the nominal interest rate. b) the inflation rate will continue to rise but at a slower rate. c) the nominal...
According to the consumption function stated above, consumption is a function of disposable income. This implies that the saving schedule is _____. If consumption was a function of disposable income...
Q1 The question I need help with is not the one at the bottom of the table, it is actually: Refer to the table. Money supply M2 for this economy is. Money Market Mutual Fund Balances Held by Businesse...
If the MPC in an economy is 0.75, government could shift the aggregate demand curve rightward by $36 billion by a) decreasing taxes by $12 billion. b) increasing government spending by $12 billion. c)...
Year Gov Spend Tax Rev GDP 1 450 425 2000 2 500 450 3000 3 600 560 4000 4 640 620 5000 5 680 580 4800 6 600 620 5000 The accompanying table gives budget information for a hypothetical economy. Assume ...
Refer to the graph. If the initial equilibrium interest rate was 5 percent and the money supply increased by $50 billion, then the new interest rate would be Multiple Choice 4 percent. 1 percent. 3 pe...
An increase in the supply of labor will: Select one: A. decrease the marginal product of capital. B. increase the real wage rate. C. increase the marginal product of capital. D. decrease the real rent...
An increase in the supply of capital will: Select one: A. increase the real rental price of capital. B. decrease the real rental price of capital. C. increase the productivity of capital. D. increase ...
If output is described by the production function  Y  =  AK 0.2 L 0.8, then the production function has: Select one: A. constant returns to scale and the share of labor in GDP is 0.2. B. increasin...
An interviewer for the Current Population Survey has the following information. Jennifer Temple is working as a second-grade schoolteacher. Frank Peabody is attending college full-time to earn a deg...
If GDP measured in billions of current dollars is $5,465, consumption is $3,657, investment is $741, and government purchases are $1,098, then net exports are: Select one: A. $131. B. -$131 C. $31 D. ...