Answer the following questions:
51. Changing the level of government spending is an example of A) fiscal policy. B) interest rate policy. (] monetary policy. D] exchange rate policy. 52. An important part of Ben Bernanke's "quantitative easing" policy is A] Buying government bonds B) Buying mortgage backed securities C) Selling government bonds D] Selling mortgage-backed securities E] A ] and B) F] C] and D) Use the following to answer questions 53-54: Figure: Productivity GOP per worker A Physical capital per worker 53. (Figure: Productivity) An increase in physical capital per worker with everything else remaining unchanged is shown on the diagram as: A] a movement from B to C. B) a movement from A to C. () a movement from A to B. D) a movement from B to A.54. (Figure: Productivity) An improvement in technology with everything else remaining unchanged is shown on the diagram as: A) a movement from B to A B) a movement from A to B. C) a movement from B to C. D) a movement from A to C. 55. The skills, training, and education possessed by workers that contribute to economic growth are known as: A] saving B) human capital. C] natural resources. DJ output of labor. 56. Alice's disposable income increases by $1,000, and she spends $600 of it. Alice's: A] MPS is 0.4 and she saves $400. B) MPC is 0.4 and she saves $400. C) MPS is 0.4 and she saves $600. DJ MPC is 0.6 and she consumes $400. 57. If a country sold more goods and services to the rest of the world than it purchased from the other countries, then the country has a: A] trade deficit. Bj budget deficit. () trade surplus. Dj budget surplus. 58. A source of the leftward shift in the Aggregate Demand curve in the Great Depression of 1929-33 as discussed in lecture was A] The decline in defense spending after the end of World War I B] Overbuilding in the 1920s due partly to the invention of the electric elevator () Fear of an imminent war after Hitler took over political control of Germany DJ An increase in imported goods which created unemployment for workers employed in the industries making the same kinds of products as the new imports 59. The present value of a future payment: A] decreases when the interest rate rises. B) decreases when the interest rate falls. () decreases when the interest rate stays the same. D) never changes regardless of the interest rates. 60. Suppose the marginal propensity to consume changes from 0.75 to 0.9. How will this affect the consumption function? A] The slope will get steeper. B) Autonomous consumption will increase. () The function will shift upward. D] The slope will get steeper and autonomous consumption will increase.Problem 1 (13 pts] Age Don't have a Don't have a Have a full Have a part job but are job and are time job time job looking for Total not looking one for one
