trident eco202 module 2 slp quizz latest 2016 may 90% grades

The budget deficit will increase when there is a:
Question 1 options:

a) decrease
in government spending.

b) increase
in government spending.

c) increase in taxes.

d) None of
the above

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Question 2 (2 points)

Which of the following is the main objective of fiscal
policy?
Question 2 options:

a) Health
care coverage for all Americans

b) Energy
independence from Middle East oil

c) Change
the level of real GDP in the short run

d) Discovering
a cure for AIDs

Question 3 (2 points)

Which of the following would change autonomous consumption?
Question 3 options:

a) Consumer
wealth

b) Value of
stocks and bonds

c) Consumer
confidence

d) All of
the above

Question 4 (2 points)

What does the aggregate supply curve depict?
Question 4 options:

a) Input and
output

b) The total
supply for GDP

c) The
relationship between the level of prices and real GDP

d) Price
fluctuations

Question 15 (2 points)

Which of the following would lead to an increase in
aggregate demand?
Question 15 options:

a) Increasing
government purchases

b) Decreases
taxes

c) Expansionary
fiscal policy

d) All of
the above

Question 14 (2 points)

“Crowding out” implies that if output remains the
same, an increase in government spending causes:
Question 14 options:

a) an
increase in consumption.

b) a
decrease in investment.

c) an
increase in net exports.

d) a
decrease in real GDP.

?
Question 13 (2 points)

The difference between a government’s spending and its
revenues from taxation is called:
Question 13 options:

a) contractionary
policies

b) budget
deficit

c) fiscal
policy

d) expansionary
policies

Question 12 (2 points)

Suppose Steve has an MPS (Marginal Propensity to Save) = .2.
If he earns an extra dollar, how much will he spend?
Question 12 options:

a) 0

b) $0.80

c) $0.20

d) $1

Question 11 (2 points)

Which of the following is considered a “sticky price”?
Question 11 options:

a) Wage

b) Auction
prices

c) Price of
food products

d) None of
the above

Which of the following is countercyclical?
Question 10 options:

a) Investment
spending

b) Price of
stocks

c) Unemployment

d) Consumption
spendin

Question 9 (2 points)

According to Okun’s Law, if the normal rate of growth of GDP
is 3% and the current unemployment rate is 6%, an increase in GDP growth to 4%
would cause unemployment to change by what percentage?
Question 9 options:

a) 3%

b) 5%

c) 5.5%

d) 6%

Question 8 (2 points)

A prolonged period of decline in output is called:
Question 8 options:

a) unemployment.

b) expansion.

c) depression.

d) None of
the above

The date at which the recession is considered to have begun
to end (when output starts to increase again) is called the:
Question 7 options:

a) decline.

b) trough.

c) incline.

d) peak.

Question 6 (2 points)

Induced consumption depends on:
Question 6 options:

a) level of
income.

b) price
level.

c) stock
market.

d) None of
the above

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Question 5 (2 points)

A decrease in individual income taxes ________ disposable
income, which ________ consumption spending.
Question 5 options:

a) decreases;
increases

b) increases;
increases

c) decreases;
decreases

d) increases;
decreases