2. Question 2 Which of the following is the normal chain of events for developed countries to finance their fiscal deficits? 1 point Commercial banks, households, corporations and foreigners…
7. Question 7 The best definition of automatic stabilizers among the following is: 1 point That tax revenues rise automatically when the economy is in a recessionary gap while…
6. Question 6 If the average citizen spends $90 of any $100 from a fresh income injection, the country´s MPC would be: 1 point .1 None of these…
5. Question 5 In general, it is correct to say which of the following? 1 point The higher the MPS, the larger the impact of any government spending program…
3. Question 3 In a moment when the economy is operating just at potential GDP, the appropriate policy would be 1 point expansive restrictive none of these…
2. Question 2 Which of the following measures would shift the aggregate demand curve to the left? 1 point Reducing interest rates Raising taxes Raising government spending…
1. Question 1 Which combination of actions would have the most restrictive impact on the economy? 1 point Raising taxes and raising government spending Raising taxes and raising…
6. Question 6 Which of the following two indicators typically show an INDIRECT or inverse relationship (i.e., move in opposite directions) across a normal business cycle? 1 point a….
4. Question 4 Which one of the following events would be represented graphically as a decrease (inward shift) in the aggregate supply (AS) curve? 1 point A decline in…
2. Question 2 The element that does NOT form part of the GDP equation is 1 point Gross private savings Gross fixed capital formation, or investment Net…
