Macroeconomic Basic Questions are below.

Question 1 1 pts To close a contractienary gap using scal policy, the government can increase taxes by the size of the gap 0 decrease taxes by the size of the gap 0 increase taxes by more than the size of the gap 0 decrease taxes by less than the size of the gap 0 decrease taxes by more than the size of the gap Question 2 1 pts Exhibit 12-1 Real Planned Government GDP Consumption investment purchases $1,800 $1,540 $100 $200 1,900 1,620 100 200 2,000 1,?00 100 200 2,100 1,?80 100 200 2,200 1,860 100 200 2,300 1,940 100 200 Given the information in Exhibit 12-], if government purchases increased to $300, equilibrium real GDP demanded would increase by 0 $300 (3 $500 0 $1,200 0 $1,500 :23 $2,500 Question 3 1 pts A tax rebate, like the one issued in 2008, is likely to consumption spending than would a permanent tax cut. 0 decrease; more 0 increase; less 0 increase; more 0 decrease; less Question 4 1 pts Which of the following would not be considered an automatic stabilizer? O rising income tax collections due to rising incomes during an expansion O legislation increasing funding for job retraining passed during a recession 0 declining food stamp payments due to more persons nding jobs during an expansion O decreasing unemployment insurance payments due to decreased joblessness during an expansion Question 5 1 pts Expansionary fiscal policy will O shift the short-run aggregate supply curve to the left. O shift the aggregate demand curve to the right. O not shift the aggregate demand curve. O shift the aggregate demand curve to the left. Question 6 1 pts An increase in the federal budget deficit O only occurs when there is a deficit in the balance of trade O creates deflation O decreases aggregate demand O decreases aggregate quantity demanded along a stationary aggregate demand curve O raises the equilibrium level of output and employmentQuestion 7 1 pts To close a contractionary gap using scal policy, the government can 0 increase government spending by the size of the gap O decrease government spending by the size of the gap 0 increase government spending by more than the size of the gap 0 increase government spending by less than the size of the gap O decrease govemment spending by more than the size of the gap Question 8 1 pts If the MPC equals 0.75 and (3 increases by $100, real GDP demanded will increase by 0 '?5 percent O 25 percent O $50 0 $200 0 $400 Question 9 1 pts Suppose real GDP is $12.6 trillion and potential GDP is $12.4 trillion. To move the economy back to potential GDP, Congress should raise taxes by an amount more than $200 billion. lower government purchases by $200 billion. raise taxes by $200 billion. lower government purchases by an amount less than $200 billion. lower taxes by $200 billion. Question 10 1 pts Contractionary fiscal policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be and real GDP to be O lower; higher O higher; higher O higher; lower O lower; lower