Final Exam (Weight 300 Points) STUDENT’S NAME ______________________________ Multiple choice Questions. (Weight 5 points each) Choose the best answer. 1) The unemployment rate is the number of ?
2) The value of steel sold to an automobile producer is __________ directly included in the GDP because __________. 3) In the simplest Keynesian model of the determination of income, interest rates are assumed ? 4) An increase in the money supply will raise equilibrium GDP if the IS or IM curve? 5) The aggregate demand curve may be derived from the IS-LM analysis by shifting 6) Suppose that members of Congress and the President believe that the natural rate of unemployment is 2% but in fact it is 6%, and employing fiscal policy they increase AD each time unemployment rises above 2%. The underestimation of the natural rate combined with adaptive expectations will lead to? 7) Unanticipated inflation will hurt __________ and help __________. 8) Once monetary policy is dedicated to controlling the level of nominal GDP, then fiscal policy can be used to? 9) A major side-effect of a stimulative fiscal policy is that it will ? 10) The conditions for joining the "Euro" single-currency block led a number of European countries to __________ and consequently reduce their debt-GDP ratios. 11) The national debt must eventually be paid off to ?
12) Over a decade or longer, a government budget deficit ? 13) As an individual, you cannot participate in the financial markets to issue new stock or sell new bonds because? 14) The quantity equation makes the demand for money depend on ? 15) The quantity theory of money assumed?
16) Keynes's "speculative motive" for holding money is?
17) If the level of interest rates increases, then the current value and price of a bond paying a fixed interest payment will? 18) The central issue in the stabilization policy...