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For the Eurozone countries, the most important source of the downward slope of the aggregate demand curve is probably ?

Economics Mcqs, Macroeconomic Policy Tools /
For the Eurozone countries, the most important source of the downward slope of the aggregate demand curve is probably ?

A. The wealth effect
B. None of these answers
C. The exchange-rate effect
D. The fiscal effect
E. The interest-rate effect

For the Eurozone countries, the most important source of the downward slope of the aggregate demand curve is probably ? Read More »

Economics Mcqs, Macroeconomic Policy Tools

When money demand is expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the interest rate ?

Economics Mcqs, Macroeconomic Policy Tools /
When money demand is expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the interest rate ?

A. None of these answers
B. decrease the quantity demanded of money
C. increase the quantity demanded of money
D. decreases the demand for money
E. increases the demand for money

When money demand is expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis an increase in the interest rate ? Read More »

Economics Mcqs, Macroeconomic Policy Tools

Which of the following best describes how an increase in the money supply shift the aggregate demand curve ?

Economics Mcqs, Macroeconomic Policy Tools /
Which of the following best describes how an increase in the money supply shift the aggregate demand curve ?

A. The money supply shifts right prices fall spending increases and the aggregate demand curve shifts right
B. The money supply shifts right the interest rate rises investment decreases and the aggregate demand curve shifts left
C. The money supply shifts right the interest rate falls, investment increases, and the aggregate demand curve shifts right
D. The money supply shifts right, prices rise, demand curve shifts left

Which of the following best describes how an increase in the money supply shift the aggregate demand curve ? Read More »

Economics Mcqs, Macroeconomic Policy Tools

Which of the following statements about stabilization policy is not true ?

Economics Mcqs, Macroeconomic Policy Tools /
Which of the following statements about stabilization policy is not true ?

A. Many economists prefer automatic stabilizers because they affect the economy with a shorter lag than activist stabilization policy
B. None of these answers are true
C. Long lags enhance the ability of policy makers to fine tune the economy
D. When policy makers implement activist stabilization policies there is a significant risk that their policies may actually have a destabilizing effect

Which of the following statements about stabilization policy is not true ? Read More »

Economics Mcqs, Macroeconomic Policy Tools

When an increase in government purchases increases the income of some people, and those people spend some of that increase in income on additional consumer goods, we have seen a demonstration of ?

Economics Mcqs, Macroeconomic Policy Tools /
When an increase in government purchases increases the income of some people, and those people spend some of that increase in income on additional consumer goods, we have seen a demonstration of ?

A. The multiplier effects
B. supply side economics
C. None of these answers
D. The crowding out effect

When an increase in government purchases increases the income of some people, and those people spend some of that increase in income on additional consumer goods, we have seen a demonstration of ? Read More »

Economics Mcqs, Macroeconomic Policy Tools

Which of the following statements regarding taxes is correct ?

Economics Mcqs, Macroeconomic Policy Tools /
Which of the following statements regarding taxes is correct ?

A. Most economists believe that in the short run the greatest impact of a change in taxes is on aggregate supply, not aggregate demand
B. An increase in taxes shifts the aggregate demand curve to the right
C. A decrease in taxes shifts the aggregate supply curve to the left
D. A permanent change in taxes has a greater effect on aggregate demand than a temporary change in taxes.

Which of the following statements regarding taxes is correct ? Read More »

Economics Mcqs, Macroeconomic Policy Tools

Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?

Economics Mcqs, Macroeconomic Policy Tools /
Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?

A. decrease government spending Which the shifts the aggregate demand curve to the left
B. decrease taxes, which shifts the aggregate demand curve to the right
C. decrease taxes, which shifts the aggregate demand curve to the left
D. decrease government spending which shifts the aggregate demand curve to the right

Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ? Read More »

Economics Mcqs, Macroeconomic Policy Tools