Quiz 10
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View Results QZ10 Name: MATTHEW DICE Attempt: 1 / 1 Out of: 25 Started: November 4, 2007 1:47pm Finished: November 4, 2007 2:28pm Time spent: 40 min. 58 sec. Student finished 19 min. 2 sec. ahead of the 60 min. time limit. Question 1 (1 point) In the early 1960s, President Lyndon B. Johnson fought: (1) the war on poverty in the US; (2) the war in Viet Nam; (3) the Cold War against the USSR; and, (4) the Space Race. Due to these increases in Government spending programs, President Johnson(s administration experienced Student response: Studen t Respon se Answer Choices a . cost-push inflation in the aggregate US economy. b . supply-shock inflation in the aggregate US economy. c . demand-pull inflation in the aggregate US economy. d . an overall economic loss to society due to the recession. e . hyperinflation.
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Transcript of Quiz 10
View Results
QZ10
Name: MATTHEW DICE Attempt: 1 / 1 Out of: 25
Started: November 4, 2007 1:47pm
Finished: November 4, 2007 2:28pm
Time spent: 40 min. 58 sec.
Student finished 19 min. 2 sec. ahead of the 60 min. time limit.
Question 1 (1 point)
In the early 1960s, President Lyndon B. Johnson fought: (1) the war on poverty in the US; (2) the war in Viet Nam; (3) the Cold War against the USSR; and, (4) the Space Race. Due to these increases in Government spending programs, President Johnson(s administration experienced
Student response:
StudentRespons
e
Answer Choices
a. cost-push inflation in the aggregate US economy.
b.
supply-shock inflation in the aggregate US economy.
c. demand-pull inflation in the aggregate US economy.
d.
an overall economic loss to society due to the recession.
e. hyperinflation.
Score: 1 / 1
Question 2 (1 point)
When the OPEC nations placed an oil embargo on the US during the early 1970s, the US experienced
Student response:
StudentRespons
e
Answer Choices
a. cost-push inflation in the aggregate US economy.
b.
demand-shock inflation in the aggregate US economy.
c. demand-pull inflation in the aggregate US economy.
d.
an overall economic increase to society due to the expansion.
e. hyperinflation.
Score: 1 / 1
Question 3 (1 point)
Cost-push inflation occurs when the economy experiences a supply shock that causes output to decrease. As the output decreases, the demand for labor decreases; however, the price level experiences an increase. This is known as stagflation.
Student response:
StudentResponse
Answer Choices
a. true.
b. false.
Score: 1 / 1
Question 4 (2 points)
As the marginal propensity to save increases,
Student response:
StudentRespons
e
Answer Choices
a. the marginal propensity to consume increases.
b.
the marginal propensity to consume does not change.
c. the marginal propensity to consume decreases.
d.
the consumption function is depicted by a steeper curve.
e. the savings function is depicted by a flatter curve.
Score: 2 / 2
Question 5 (2 points)
If consumption increases by $80 when disposable income rises by $100, then,
Student response:
StudentResponse
Answer Choices
a. mpc = 0.80
b. mps = 0.80
c. mpi = 0.80
d. mpc = 0.20
e. mps = 0.50
Score: 2 / 2
Question 6 (2 points)
If consumption decreases by $60 when disposable income falls by $100, then,
Student response:
StudentResponse
Answer Choices
a. mpc = 0.50
b. mps = 0.50
c. mpi = 0.40
d. mpc = 0.40
e. mps = 0.40
Score: 2 / 2
Question 7 (2 points)
Given the consumption function C = $200 + .8Y, the amount of autonomous consumption equals,
Student response:
StudentResponse
Answer Choices
a. 0.8
b. 0.8Y
c. 200
d. 192
e. 208
Score: 2 / 2
Question 8 (2 points)
Given the consumption function C = $200 + .8Y, the marginal propensity to consume equals
Student response:
StudentResponse
Answer Choices
a. 0.8
b. 0.8Y
c. 0.2
d. 200
e. 0.25
Score: 2 / 2
Question 9 (2 points)
Given the consumption function C = $200 + .8Y, the marginal propensity to save equals
Student response:
StudentResponse
Answer Choices
a. 0.8
b. 0.8Y
c. 0.2
d. 200
e. 0.25
Score: 2 / 2
Question 10 (2 points)
Given the marginal propensity to save equals 0.2, the Keynesian expenditure (consumption) multiplier equals
Student response:
StudentResponse
Answer Choices
a. 0.8
b. 1.0
c. 2.0
d. 5.0
e. -4.0
Score: 2 / 2
Question 11 (2 points)
Given the marginal propensity to save equals 0.2, the Keynesian tax multiplier equals
Student response:
StudentResponse
Answer Choices
a. 0.8
b. 1.0
c. 2.0
d. 5.0
e. -4.0
Score: 0 / 2
Question 12 (2 points)
Given the marginal propensity to save equals 0.2, if the government increases government purchases by $10 million, the overall change in GDP will be
Student response:
StudentResponse
Answer Choices
a. $50 million
b. $100 million
c. -$40 million
d. -$400 million
e. -$500 million
Score: 2 / 2
Question 13 (2 points)
Given the marginal propensity to save equals 0.2, if the government decreases taxes by $10 million, the overall change in GDP will be
Student response:
StudentResponse
Answer Choices
a. $50 million
b. $100 million
c. $40 million
d. -$400 million
e. -$500 million
Score: 0 / 2
Question 14 (2 points)
The investment function and the government spending function are depicted by horizontal lines because they are assumed to be autonomous, meaning they are independent of current real GDP.
Student response:
StudentResponse
Answer Choices
a. True.
b. False.
Score: 2 / 2
Total score: 21 / 25 = 84.0%
