Chapter 7: URGENT PLS HELP!

Question 1 (1 point) Shed Suppose exports (X) = 100, real COP (1) = 400, and imports are equal in my, where win the marginal propensity to import. Net exports would be equal to zero if the marginal propernity to import were OA SOX. O w) 10%. Question 2 (1 point) Sand Consider the simple macroeconomic model, with government and trade. Which of the following is in the simple multiplier in this models al An increase in the tax rate. ( b) A decrease in the marginal propensity to import. O c) An increase in the marginal properity to save. O ) A decrease in investment. ) An increase in guvernment purchases. Question 3 (1 point) In the demand-do economic model with government and trade, which of the following changes would lead to a decrease in the Canadian marginal propensity to import? a) A depreciation of the Canadian dollar. O b) An increase in foreign income. O :] An appreciation of the Canadian dollar. O d) An increase in the marginal propensity to consume. OF A decrease in foreign income. Question 4 (1 point) Consider the simple macro model with demand-determined output and coratant prices. If inventories are accumulating, this is likely a sign that: a Potential GDP is less than actual GUP. Ob) Potential GUP is greater than actual GUP. a Desired ark anditure in less than actual national income. ) Desired aggregate expenditure is greater than actual national income. Question 5 (1 point) Consider the following news the c: "Minister of Defence announces $2 billion purchase of I n output in demand determined, and that the hel rehoned domestically, what will be the effect of this action, all other things equal, on the At function and equilibrium rational incomet ) A The At function will shift down parallel to itself, and equilibrium national income will fall The At function will rotate upward (become sterper), and equilibrium onal income will rise. The At function will rotate downward (become flatter), and national income will fall 1) The At function will shift up parallel in itself, and equilibrium national income will rise. E) There will be no change in the At function or in equilibrium national income. Question 6 (1 point) Consider a macro model with a consiant price level and demand-determined output. A rise in the net bas rate . Equilibrium rustinrial income. A lower; lowers OHI lowers; rahes C raher raises O Ul lowers has no effect on OF raises; has no effect on Question 7 (1 point) Which of the following can cause an upward shift and flattening of the net export (NX) function? O A an increase in de OHI a decrease in foreign national income 4) s decrease in domestic prices relative to foreign prices ( D) an increase in the Canadian dollar price of foreign currency OH both C and D are correct Question 8 (1 point) Suppose that caports are X = 440 and imports are given by IM = 0.10v. At what level of national income, Y, will not exporta equal zero! (Nearest dollar) Your Answer: AnswerQuestion 9 /1 point) In equilibrium, an economy is characterized by shortages in labour and goods markets, and the intensive one of capital equipment. Which of the following is likely true in this economy? al Desired aggregate expenditure is less than actual national income. O b Desired aggregate expenditure is greater than actual national income. () a Potential GDP is less than actual GOP. O a Potential CUP is greater than actual GOP. Question 10 (1 point) Consider a simple macroeconomic.. characterized by the following equations 1 - 200 G - 250 national income were 1800, then.. al Inventories would be falling, companies would respond, and as a result, rutional income would fall (b) Inventories would be falling, companies would respond, and as a result, national income would rise. Of Inventories would be rising, companies would respond by increasing production, and an a result, national income would rise. d Inventories would be unchanged, and as a result, rational income is at equilibrium Of Imentories would be rising, companies would respond, and as a result, rulionad income would fall Question 11 (1 point) Consider a simple macro model with a constant price-level and demand-determined output. the equation of the model are: C - 1325 80.7970 G - 1100 The equilibrium income in this economy is Nearest dollar Your Answer: Answer Question 12 (1 point) Anme Shut at "full employment", the unemployment rate is 9%. If the current unemployment men in 8%, the most appropriate fiscal policy response would be to: a Reduce net exports, NX. (b) Increase government spending, G. a Reduce the marginal properaity to consume, MPC Odbcmean autonomous medment, L Increase the net tax rate, L