1- Over time in a growing economy, the long run aggregate supply curve will A-move so as to match the short run aggregate supply (SRAS) curve....

1- Over time in a growing economy, the long run aggregate supply curve will

A-move so as to match the short run aggregate supply (SRAS) curve.

B-shift outward to the right.

C-shift inward to the left.

D-become increasingly steep.

2- The investment function will shift when there is a change in

A-the interest rate.

B-firms' profit expectations.

C-the cost of borrowing.

D-the opportunity cost of retained earnings.

3- If firms' unplanned inventories are increasing, then in a closed, private economy

A-the level of real national income will rise.

B-the level of real national income will not change in the foreseeable future.

C-actual consumption is greater than planned consumption.

D-consumers are saving more than businesses anticipated.

4- Which of the following is correct?

A- 1 + MPS = MPC

B- 1 - MPC = MPS

C- 1 - MPS = MPC + 1

D- 1 - MPS = MPC - 1

5- Which one of the following is NOT an automatic stabilizer?

A- the income tax system

B- the system of national defense procurement

C- the system of welfare payments

D- unemployment compensation programs

6- Suppose the actual federal funds rate is equal to the rate implied by a particular inflation goal. In this situation, the Taylor rule implies that

A- monetary policy will tend to produce that inflation rate.

B- monetary policy is contractionary.

C- monetary policy is expansionary.

D- fiscal policy will result in a balanced budget.

7- If the United States exports $250 billion worth of goods and imports $420 billion worth of goods,

A- the balance of payments will be -$170 billion.

B- the balance of trade will be -$170 billion.

C- the balance of trade will be $670 billion.

D- the official reserve transaction will be $170 billion.