question 6

When taxes increase, consumption decreases. How is this situation represented in the aggregate demand and aggregate supply model?

Select one:

a. by shifting aggregate supply to the left

b. by shifting aggregate demand to the left

c. by a movement to the left along a given aggregate-demand curve

d. None of the other choices are correct

e. by a movement to the right along a given aggregate-demand curve

question 7

george buys and lives in a newly constructed home he paid $200000 for in 2012. He sells the house in 2013 for $225000. How is GDP impacted?

Select one:

a. The 2013 sale increases 2013 GDP by $25000 and does nothing to 2012 GDP.

b. The 2013 sale does not increase 2013 GDP and does nothing to 2012 GDP.

c. The 2013 sale increases 2013 GDP by $225000, and 2012 GDP is revised upward by $25000.

d. The 2013 sale increases 2013 GDP by $225000 and does nothing to 2012 GDP.

question 8

The local Chevrolet dealership has an increase in inventory of 25 cars in 2012. How will the sale of all 25 cars in 2013 affect the GDP?

Select one:

a. The value of the cars will not be included in GDP in 2012 or 2013.

b. None of the other choices are correct

c. The value of the cars will not affect the 2012 GDP, but will be included in 2013 GDP.

d. The value of the cars will be included in both 2012 and 2013 GDP.

e. The value of the cars will be counted as part of GDP in 2012, but not in 2013.

question 9

Which of the following situations would induce a shift of the aggregate demand to the right?

Select one:

a. Government expenditures and the money supply increased.

b. The price level decreased, and the government instituted an investment tax credit.

c. None of the other choices are correct

d. The bank rate increased, and the dollar appreciated.

e. The price level and government expenditures decreased.

question 10

n computing GDP, what is investment?

Select one:

a. spending on capital equipment, inventories, and structures, excluding household purchases of new housing

b. spending on new capital equipment, inventories, and structures, including new housing

c. spending on stocks, bonds, and other financial assets

d. spending on real estate and financial assets