MACRO 2301 Suppose the economy is closed with national saving of $3 trillion
Question
Suppose the economy is closed with national saving of $3 trillion, consumption of $10 trillion, and government purchases of $4 trillion. What is GDP?
Question 19 options:
$3 trillion
$9 trillion
$11 trillion
$17 trillion
Scenario 26-3. Assume the following information for an imaginary, open economy.
Consumption = $1,000; investment = $200; net exports = -$50;
taxes = $230; private saving = $225; and national saving = $150.
Refer to Scenario 26-3. This economy’s government is running a
Question 21 options:
budget deficit of $75.
budget deficit of $80.
budget deficit of $50.
budget deficit of $100.
Question 28 (2 points)
Figure 28-4
Refer to Figure 28-4. If 6,000 workers are unemployed, then the minimum wage must be
Question 28 options:
$1.
$4.
$6.
$7.
Which of the following statements is correct?
Question 33 options:
A general, persistent decline in stock prices may signal that the economy is about to enter a boom period because people will be able to buy stock for less money.
A general, persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices may mean that people are expecting low corporate profits.
A general, persistent decline in stock prices may signal that the economy is about to enter a recession because low stock prices mean that corporations have had low profits in the past.
Expectations about the business cycle have no impact on stock prices.
In a closed economy, private saving is
Question 37 options:
the amount of income that households have left after paying for their taxes and consumption.
the amount of income that businesses have left after paying for the factors of production.
the amount of tax revenue that the government has left after paying for its spending.
always equal to investment.
Which of the following is correct?
Question 40 options:
Labor force = number of employed.
Labor force = population – number of unemployed.
Unemployment Rate = number of unemployed (number of employed + number of unemployed) 100.
Unemployment Rate = number of unemployed adult population 100.
Banks
Question 43 options:
play a role in creating an asset that people can use as a medium of exchange.
are financial intermediaries, but mutual funds are not financial intermediaries.
are financial markets, as are bond markets.
All of the above are correct.
Scenario 26-2. Assume the following information for an imaginary, closed economy.
GDP = $5 trillion; consumption = $3.1 trillion;
government purchases = $0.7 trillion; and taxes = $0.9 trillion.
Refer to Scenario 26-2. For this economy, national saving is equal to
Question 49 options:
$1.1 trillion.
$2.9 trillion.
$1.2 trillion.
$1.7 trillion.
