The initial impact of an increase in government spending is to shift ?

Related Mcqs:

1. Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?

   A. None of these answers
   B. Disagree because they have different scientific judgments
   C. really don’t disagree at all. It just appears that they disagree
   D. disagree because they have different values

2. The government increase government spending to try to reduce unemployment This is an example of ?

   A. laissez-faire.
   B. monetary policy
   C. fine tuning
   D. automatic stablisers

3. In the model of aggregate demand and aggregate supply, the initial impact of an increase in consumer optimism is to ?

   A. shift the short-run aggregate supply curve to the left
   B. shift the aggregate demand curve to the right
   C. shift the short-run aggregate supply curve to the right
   D. shift the aggregate demand curve to the left

4. What is called when government spending overwhelms government revenue resulting in government borrowing ?

   A. Budget deficit
   B. Deficient financing
   C. Unbalanced spending
   D. Deficit spending

5. Refer to Exhibit 6.Suppose the economy is in long-run equilibrium at point E. A sudden increase in government spending should move the economy in the direction of point ?

   A. d
   B. G
   C. E
   D. b

6. If the government increases spending and raises taxes by just enough to finance this increase it will ?

   A. leave output unchanged
   B. increase output
   C. reduce output
   D. increase the MPC

7. For the Central bank to keep the interest rat unchanged as the government increase spending, the Central Bank must continue to ?

   A. decrease the money supply
   B. increase the money supply
   C. increase the demand for money
   D. decrease the demand for money

8. Suppose consumer tastes shift toward the consumption of apples Which of the following statements is an accurate description of the impact of this event on the market for apples ?

   A. There is an increase in the quantity demanded of apples and in the supply for apples
   B. There is an increase in the demand and supply of apples.
   C. There is an increase in the demand for apples and a decrease in the supply of apples
   D. There is a decrease in the quantity demanded of apples and an increase in the supply for apples
   E. There is an increase in the demand for apples and an increase in the quantity supplied of apples.

9. The government increase the minimum wage. The National Association of Fast Food Restaurants hires you to determine the impact that this higher minimum wage will have on it industry. This is an example of ?

   A. industry equilibrium analysis
   B. specific equilibrium analysis
   C. partial equilibrium analysis
   D. general equilibrium analysis

10. An upward shift in marginal cost _____ output and an upward shift in marginal revenue ______ output?

    A. reduces; reduces
    B. reduces; increases
    C. increases; increases
    D. increases; reduces