Can anyone help with these questions? There the only ones I got wrong. 1) Classical economics argue
Question:
Can anyone help with these questions? There the only ones I got wrong.
1) Classical economics argue that aggregate supply is
A. horizontal and the economy is stable in the long run.
B. vertical and the economy is stable in the long run.
C. horizontal and the economy is unstable in the long run
D. vertical and the economy is unstable in the long run
E. horizontal and the economy adjusts to full employment
2) Which if the following would cause an increase in aggregate demand?
I. Congress cuts personal income taxes.
II. The degree of excess capacity increases
III. The quantity demanded of imports increases.
A. I only
B. II only
C. III only
D. I and II only
E. I, II and III
3) If consumers are more optimistic about the future economy, then
a. there is no change in the AD curve as SRAS has decreased.
b. AD shifts right and output would decrease
c. AD shifts right and output would decrease
d. AD shifts left and output would increase
e. AD shifts left and the output would decrease
4)
Disposable Income -
$10,000. $12,000
Consumer Spending-
$7,500. $ 8,500
What is the MPC according to the table above?
A .5
B .75
C .8
D 1.25
E 2
5)
Disposable Income
$0. $2,000
Consumption
$300. $1,800
What is the MPC according to the table above?
A .5
B .6
C .75
D .8
E .9
6) Which of the following illustrates the most correct cause and effect chain for a decrease in government spending?
A. G decreases, shifting AD to the left, decreasing output and price level
B. G decreases, decreasing C, shifting AD to the left decreasing output and increasing price level
C. G decreases, decreases C, shifting AD to the left increasing output and price level
D. G decreases, shifting AD to the right, increasing output and price level
E. G decreases, shifting AD to the right, decreasing output and increasing price level