Of the following statements, which one is TRUE?

Group of answer choices

The reserve requirement would be reduced by a contractionary fiscal policy, which would also slow the economy.

Contractionary monetary policy will allows more cash in the economy and allowing the economy to grow.

Government revenue would increase and the economy would slow down under a contractionary monetary policy.

The national debt would rise as a result of fiscal policy contraction.

Flag question: Question 27Question 271 pts

Which of the following action would be suitable to control inflation?

Group of answer choices

Increase discount rate

Increase government expenditure

Decrease reserve ratio

Decrease taxes

Flag question: Question 28Question 281 pts

Which of this approach may increase money supply?

Group of answer choices

Selling of government bond

Reduction in discount rate

Increases in reserve ratio

Increase taxes

Flag question: Question 29Question 291 pts

An economy is at the peak. A recommended policy mix might be to:

Group of answer choices

Decrease interest rates, increase government spending and decrease taxes

Increase interest rates, decrease government spending and increase taxes

Decrease interest rates, decrease government spending and increase taxes

Increase interest rates, increase government spending and decrease taxes

Flag question: Question 30Question 301 pts

The following actions will shift the aggregate demand curve to the right EXCEPT:

Group of answer choices

An increase in government transfer payments

A decrease in interest rates

An increase in imports

A decrease in taxes

Flag question: Question 31Question 311 pts

The following factors would not shift the Aggregate Supply curve.

Group of answer choices

Government spending

Incentives

Costs of factors of production

Availability of raw materials

Flag question: Question 32Question 321 pts

An excessive increase in Aggregate Demand is likely to result in ...

Group of answer choices

Rising prices

Unemployment increases

Stagnant living standards

Balance of payments surplus

Flag question: Question 33Question 331 pts

The following is a component of Aggregate Demand, EXCEPT

Group of answer choices

Individual saving

Household consumption

Government expenditure

Net Export

Flag question: Question 34Question 341 pts

The impact of inflation can be reduced by implementing the following actions...

I. Increase taxes

II. Increase government spending

III. Increase discount rate

IV. Increase reserve ratio

Group of answer choices

I, III and IV

I, II and III

I, II and IV

II, III and IV

Flag question: Question 35Question 351 pts

Monetary policy is controlled by ...

Group of answer choices

Ruling Government

Financial Institutions

Ministry of Finance

Central Bank

Flag question: Question 36Question 361 pts

Taxing & spending to help the economy grow is referred to as

Group of answer choices

Contractionary policy

Budget deficit

Expansionary policy

Monetary policy

Flag question: Question 37Question 371 pts

The two "tools" of Fiscal Policy are:

Group of answer choices

the power to print money

the power to borrow money

the power to tax

the power to produce goods

Flag question: Question 38Question 381 pts

The goal of fiscal and monetary policy is

Group of answer choices

to promote an agenda for various interest groups

to create booms and busts in the economy

to stabilize the economy

to compare and contrast with other countries

Flag question: Question 39Question 391 pts

Which of the following is NOT a tool the Central Bank use for monetary policy?

Group of answer choices

Manipulation of Interest Rates

Increasing or decreasing taxing and spending

Open Market Operations (buying and selling securities and bonds)

Manipulate of the Reserve Requirements

Flag question: Question 40Question 401 pts

What are the actions taken to manage the availability and cost of money and credit to attain stable prices?

Group of answer choices

Fiscal Policy

Expansionary Policy

Monetary Policy

Contractionary Policy

Flag question: Question 41Question 411 pts

Fiscal policy is used to increase growth (and therefore improve unemployment) and to ...

Group of answer choices

Increase interest rates

Reduce interest rates

Persuade banks to lend more money

Reduce inflation

Flag question: Question 42Question 421 pts

The government can all of the following to increase aggregate demand and reduce a recessionary gap,EXCEPT:

Group of answer choices

Decrease welfare payments

Spend more money

Decrease taxes on businesses to leave them more money to invest

Decrease taxes to leave consumers more money to spend

Flag question: Question 43Question 431 pts

What does the vertical axis represent on the aggregate demand curve?

Group of answer choices

Total Input

Total Output

Price Level

Total Input and Total Output Combined

Flag question: Question 44Question 441 pts

Which of the following is not a determinant of aggregate demand ?

Group of answer choices

Change in Political Parties

Change in investment Spending

Change in Consumer Spending

Change in Government Spending

Flag question: Question 45Question 451 pts

The foreign purchases effect suggests that a decrease in Malaysia's price level relative to other countries will:

Group of answer choices

increase Canada's exports and decrease Malaysia's imports.

shift the aggregate demand curve leftward.

decrease Canada's exports and increase Malaysia's imports.

shift the aggregate supply curve leftward.

Flag question: Question 46Question 461 pts

The aggregate supply curve (short-run) slopes upward and to the right because:

Group of answer choices

supply creates its own demand.

the price level is flexible upward but inflexible downward.

changes in wages and other resource prices completely offset changes in the price level.

wages and other resource prices adjust only slowly to changes in the price level.

Flag question: Question 47Question 471 pts

Which of the following will result in a decrease in private consumption expenditure and a shift of the aggregate demand curve?

Group of answer choices

There is an appreciation of the domestic currency.

Future income is expected to increase.

More people postpone their retirement.

There is a decrease in government transfers.

Flag question: Question 48Question 481 pts

Which of the following will lead to a decrease in the aggregate demand of an economy?

Group of answer choices

An increase in the national income of major trading partners

A decrease in government subsidy on production.

A continuous decrease in the implicit GDP deflator

A decrease in firms' desire to invest

Flag question: Question 49Question 491 pts

Which of the following descriptions about the long run isCORRECT?

Group of answer choices

Aggregate demand always equals aggregate supply.

People do not need to change their behaviours according to the changes in economic conditions.

All people in the economy fully adjust to the changes in economic conditions.

Input prices are more flexible than output prices.

Flag question: Question 50Question 501 pts

All of the following lead to a shift of the Long Run Aggregate Supply curveEXCEPT

Group of answer choices

An increase in the nominal wage rate of labour.

An increase in the education level of the general public.

An increase in foreign direct investment.

An enhancement in production technology.