[{"id":213659,"question":"In the Keynesian model in the long run an increase in the money supply will raise","choices":[{"text":"The price level but not the level of output","value":"A"},{"text":"The level of output but not the price level","value":"B"},{"text":"Both the level of output and the price level","value":"C"},{"text":"Neither the level of output nor the price level","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213658,"question":"In the Keynesian model in the long run a decrease in the money supply will cause ___ in the interest rate and _____ in the price level.","choices":[{"text":"An increase ; an increase","value":"A"},{"text":"A decrease ; a decrees","value":"B"},{"text":"No change ; an increase","value":"C"},{"text":"No change ; a decrease","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213657,"question":"In the Keynesian model which curve is vertical.","choices":[{"text":"LRAS","value":"A"},{"text":"SRAS","value":"B"},{"text":"AD","value":"C"},{"text":"NS","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213656,"question":"In the Keynesian model short run equilibrium occurs where","choices":[{"text":"The IS and LM curves interest","value":"A"},{"text":"The IS curve LM curve and FE lines intersect","value":"B"},{"text":"the IS curve intersects the FE line","value":"C"},{"text":"The LM curve intersects the FE line","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213655,"question":"in the keynesian model in the short run the amount of employment is determined by the effective labor demand curve and the level of.","choices":[{"text":"Prices","value":"A"},{"text":"Output","value":"B"},{"text":"The real interest rate","value":"C"},{"text":"The supply of labor","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213654,"question":"A model in which individual producers act as price setters because there are only a few sellers and the product they sell is not standardized, is called.","choices":[{"text":"Imperfect competition","value":"A"},{"text":"Perfect competition","value":"B"},{"text":"Monopoly","value":"C"},{"text":"Monopsony","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213653,"question":"The efficiency wage model can be modified to allow real wages to vary over the business cycle by assuming that.","choices":[{"text":"Workers effort may depend on the unemployment rate and the real wage","value":"A"},{"text":"During a recession labor supply will decrease reducing the efficiency wage","value":"B"},{"text":"During a recession productivity wil fall causing a reduction in the efficiency wage","value":"C"},{"text":"During a boom labor demand will increase, causing the efficiency wage to rise","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213652,"question":"According to the efficiency wage model during a recession firms will not reduce real wages because.","choices":[{"text":"Unions would go on strike reducing profitability","value":"A"},{"text":"This would reduce worker effort and productivity.","value":"B"},{"text":"The equilibrium real wage has increased","value":"C"},{"text":"Legally, they can't","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213651,"question":"In the efficiency wage model if the real wage is higher than the market clearing wage so that there in an excess supply of labor.","choices":[{"text":"Firms will hire new workers at lower wages","value":"A"},{"text":"Firms will replace high paid workers with low paid formerly unemployed workers","value":"B"},{"text":"Employers will not hire workers who are willing to work for a lower wage.","value":"C"},{"text":"Firms will demand a higher level of effort from existing employees","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213650,"question":"In the efficiency wage model with the efficiency wage above the market clearing wage when employment is at its full employment level.","choices":[{"text":"Labor supply equals labor demand","value":"A"},{"text":"There is an excess supply of labor","value":"B"},{"text":"there is an excess demand for labor","value":"C"},{"text":"There could be either an excess demand for or an excess supply of labor","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213649,"question":"The gift exchange motive suggests that","choices":[{"text":"Workers value benefits like health insurance more than job security","value":"A"},{"text":"Workers prefer a nice work environment even if they must accept lower wages.","value":"B"},{"text":"Workers who feel well treated will work harder and more efficiently","value":"C"},{"text":"Workers will shirk if they are paid a low wage","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213648,"question":"For a borrower an increase in the real interest rate will lead to.","choices":[{"text":"Higher current consumption and less borrowing","value":"A"},{"text":"Higher current consumption and less saving","value":"B"},{"text":"Lower current consumption and less borrowing","value":"C"},{"text":"Lower current consumption and less saving","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213647,"question":"The substitution effect of a decrease in real interest rates is to cause a consumer to.","choices":[{"text":"Increase future consumption and decrease current consumption","value":"A"},{"text":"Decrease future consumption and increase current consumption","value":"B"},{"text":"Increase current consumption and increase saving","value":"C"},{"text":"Decrease current consumption and increase saving.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213646,"question":"Suppose the government provides a tax cut today that is matched by a tax increase in the future that's equal in present value to the tax cut This causes a consumer's saving to.","choices":[{"text":"Decrease","value":"A"},{"text":"Increase","value":"B"},{"text":"Remain unchanged","value":"C"},{"text":"Increase if the person was a lender and decrease if the person was a borrower","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213645,"question":"A temporary decrease in government purchases would cause.","choices":[{"text":"A rightward shift in the saving curve and a leftward shift in the investment curve","value":"A"},{"text":"A rightward shift in the saving curve and a rightwards shift in the investment curve.","value":"B"},{"text":"A right ward shift in the saving curve but no shift in the investment curve","value":"C"},{"text":"No shift in the saving curve but a left ward shift in the investment curve.","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213644,"question":"An increase in the expected real interest rate tends to.","choices":[{"text":"Raise desired saving only","value":"A"},{"text":"Raise desired investment only","value":"B"},{"text":"Raise both desired savings and desired investment","value":"C"},{"text":"Raise desired savings, but lower desired investment.","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213643,"question":"When desired national saving equals desired national investment what market is in equilibrium.","choices":[{"text":"The goods market","value":"A"},{"text":"The money market","value":"B"},{"text":"The foreign exchange market","value":"C"},{"text":"The stock market","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213642,"question":"Suppose your company is in equilibrium will its capital stock at its desired level A permanent increase in the depreciation rate now has what effect on your desired capital stock. i","choices":[{"text":"Raises it because the future marginal productivity of capital is higher","value":"A"},{"text":"Lowers it because the future marginal productivity of capital is lower","value":"B"},{"text":"Raises it because the user cost of capital is now lower","value":"C"},{"text":"Lowers it beacause the user cost of capital is now higher","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213641,"question":"Suppose your company is in equilibrium with its capital stock at the desired level A permanent decline in the expected real interest rate now has what effect on your desired capital stock","choices":[{"text":"Raises it because the future marginal productivity of capital is higher","value":"A"},{"text":"Lowers it because the future marginal productivity of capital is lower","value":"B"},{"text":"Raises it because the user cost of capital is now lower","value":"C"},{"text":"Lowers it because the user cost of capital is now higher","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213640,"question":"A technological improvement will","choices":[{"text":"Increases the desired capital stock","value":"A"},{"text":"Decrease the desired capital stock","value":"B"},{"text":"Have no effect on the desired capital stock","value":"C"},{"text":"Have the same effect on the desired capital stock as an increase in corporate taxes.","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213639,"question":"Desired national saving would increase unambiguously if there were","choices":[{"text":"An increase in current output and expected future output","value":"A"},{"text":"An increase in expected future output and government purchases","value":"B"},{"text":"An increase in expected future output and the expected real interest rate","value":"C"},{"text":"A fall in both government purchases and expected future output","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213638,"question":"The yield curve shows","choices":[{"text":"The yields on stocks of different maturities","value":"A"},{"text":"The interest rates on bonds of different maturities.","value":"B"},{"text":"The yields on stocks with differing default risk","value":"C"},{"text":"The yields on bonds with differing default risk","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213637,"question":"When a person received an increase in wealth, what is likely to happen to consumption and saving.","choices":[{"text":"Consumption increase and saving increases.","value":"A"},{"text":"Consumption increases and saving decreases","value":"B"},{"text":"Consumption decreases and saving increases","value":"C"},{"text":"Consumption decreases and saving decreases","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213636,"question":"The fraction of additional current income that a person consumes in the current period is known as the","choices":[{"text":"Consumption smoothing motive","value":"A"},{"text":"Consumption deficit","value":"B"},{"text":"Saving rate","value":"C"},{"text":"marginal propensity to consume","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213635,"question":"The key difference between classical and Keynesian macro economist is their differing beliefs about.","choices":[{"text":"The slope of the aggregate demand curve","value":"A"},{"text":"The speed at which prices adjust","value":"B"},{"text":"The natural rate of unemployment","value":"C"},{"text":"The full employment level of output","value":"D"},{"value":"E"}],"correctAnswer":2},{"id":213634,"question":"In long run a reduction in labor supply would cause output to __ and the aggregate price level to.","choices":[{"text":"fall ; rise","value":"A"},{"text":"fall ; fall","value":"B"},{"text":"rise ; fall","value":"C"},{"text":"rise ; rise","value":"D"},{"value":"E"}],"correctAnswer":1},{"id":213633,"question":"In the long run a reduction in labor supply would cause output to _______ and the aggregate price level to.","choices":[{"text":"fall; rise","value":"A"},{"text":"fall ; fall","value":"B"},{"text":"rise ; fall","value":"C"},{"text":"rise; rise","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213632,"question":"In the long run, an increase in productivity would cause output to _________ and the aggregate price level to","choices":[{"text":"fall ; rise","value":"A"},{"text":"fall ; fall","value":"B"},{"text":"rise ; fall","value":"C"},{"text":"rise ; rise","value":"D"},{"value":"E"}],"correctAnswer":3},{"id":213631,"question":"According to Keynesian macro economics price adjust _____ to shocks, so the government should.","choices":[{"text":"Slowly ; do little","value":"A"},{"text":"Rapidly ; do little","value":"B"},{"text":"Rapidly ; fight recessions","value":"C"},{"text":"Slowly ; fight recessions","value":"D"},{"value":"E"}],"correctAnswer":4},{"id":213630,"question":"In the long run an increase in government purchases of military equipment would cause output to _________ and the aggregate price level to","choices":[{"text":"Stay constant fall","value":"A"},{"text":"fall ; fall","value":"B"},{"text":"fall ; stay constant","value":"C"},{"text":"stay constant ; rise","value":"D"},{"value":"E"}],"correctAnswer":4}]