Help with a few macro economic multiple choice questions?

Posted on 2014-12-11 06:54:00 in Economics by JAMIE

1). In the basic aggregate demand and aggregate supply model, an increase in resource prices will in the short run lead to __ in real GDP and __ in the price level.

A- an increase; an increase
B- an increase, a decrease
C- a decrease; an increase
D- a decrease; a decrease

2). An increase in price level along the aggregate demand curve raises the..

A-average price al domestic products
B-price of one product relative to all other products
C- prices of a few products relative to the price of most other products
D- prices of most products relative to the prices of a few products

3). In the basic aggregate demand and aggregate supply model, an increase in the exchange rate of the dollar relative to foreign currencies will in the long run lead to __ in real gdp and __ in the price level.

A- no change; an increase
B- no change; a decrease
C- an increase; an increase
D- a decrease; a decrease

If there is an increase in net investment spending by firms in the U.S.
A- gdp and employment would increase
B- national income will increase
C- gdp would increase buy employment would fall
D- gdp will increase, national income will increase and unemployment would fall
E- none of the above would happen

5). If workers get a raise of $100 and the consumer spends $90 out of this, the MPC is:
A- .75
B- .85
C- .95
D- .76
E. none of these

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