Test 2 Kahoot practice

Question 1

Amount by which government expedite exceed revenues during a particular year is the

Answer 1

Budget Deficit

Question 2

A reduction in personal and business taxes can be expected to

Answer 2

increase both aggregate demand and aggregate supply

Question 3

Expansionary fiscal policy is so named because it

Answer 3

is designed to EXPAND REAL GDP

Question 4

An appropriate fiscal policy response to a severe recession would be

Answer 4

an INCREASE in gov. spending

Question 5

Accumulation of all past deficits minus all past surpluses

deficits - surpluses
is what

Answer 5

Public debt

Question 6

an INCREASE in PRODUCTIVITY does what to AGGREGATE SUPPLY

Answer 6

it INCREASES

Question 7

the crowding out effect of expansionary fiscal policy suggest that

Answer 7

gov. spending INCREASES at the expense of private investment

Question 8

the phases of the business cycle progress FROM

Answer 8

peak
recession
trough
expansion

Question 9

an investment decreases by 20 billion and the economy’s MPC is 0.5, the aggregate demand curve will shift

Answer 9

leftward by 40 billion at each price level

Question 10

MPC formula

Answer 10

asdf

Question 11

inflation is undesirable because it

Answer 11

hurts some but others

Question 12

Taylor wants a real rate of return of at least 4%, if inflation is 3%, what’s the lowest nominal rate she’ll accept?

Answer 12

7%

Question 13

Why is the long run aggregate supply curve drawn as a vertical straight line?

Answer 13

resource availability, not prices determines output over time

Question 14

The monetary multiplier is

Answer 14

calculated by using the Reserve Requirement

Question 15

Fiscal policy aims to stabilize the economy with changes in

Answer 15

taxes and gov. spending

Question 16

If the average price level fell in this country relative to other countries, our…

Answer 16

IMPORTS would DECREASE and EXPORTS would INCREASE

Question 17

If depreciation exceeds Gross Private Domestic Investment

Answer 17

the economy’s stock pf capital is shrinking

Question 18

Consumption Expenditures is the U.S usually account for approximately ___ % of GDP?

Answer 18

70%