(03.09 LC) Which of the following is the result of automatic fiscal stabilizers that help an economy recover from inflationary periods?

(02.06 MC) Use the data table to answer the question that follows. Year Nominal GDP GDP Deflator 1 $640 billion 160 2 $1050 billion 175 By how much did the value of output, adjusted for inflation, change from Year 1 to Year 2?

Which structure directly receives signals from the cochlea and transmits them to higher auditory pathways?

(05.07 MC) The new budget of country B increases the funds allocated to building roads, railways, bridges, and schools. What will be the consequence of such a policy?

(03.08 MC) When the government wants to ________ the economy, it will ________ taxation to help ________ aggregate demand and output.

(03.01–03.08, 04.07 HC) A country is operating below full employment. Illustrate this economy on a fully-labeled aggregate demand—aggregate supply model. Include aggregate demand, short-run aggregate supply, and long-run aggregate supply. Label the short-run equilibrium price PE and the short-run equilibrium output YE. Label the full-employment level of output YF. If the government and central bank do not intervene, how would this economy adjust in the long run? Explain. Illustrate the process of part (b) on your graph from part (a). The government decides to use fiscal policy to correct the economic situation in part (a). Assume the difference between the short-run and long-run equilibrium output is worth $80 billion, and the marginal propensity to consume is 0.9. Calculate one specific and effective fiscal policy action the government could take. What would be the short-run impact of the government’s action on the aggregate price level? What would be the short-run impact of the government’s action on the potential output of the economy? Will the long-run equilibrium price level if the government intervenes be less than, equal to, or greater than the long-run equilibrium price level without intervention? Show the impact of the government intervention from part (d) on the equilibrium real interest rate on a fully labeled loanable funds market graph. Will the long-run aggregate supply curve move as a result of the change from part (h)? Explain.

(04.05 MC) The central bank decides to increase the money supply by $500 million in the economy by decreasing the discount rate to 4%. Which of the following is true about the nominal interest rate in the economy?

(05.05 MC) The economy depicted in this data table is closed, with no international trade of any kind. Government spending $40 billion Government transfer payments $20 billion Tax revenues $40 billion Private savings $60 billion Business capital investments $60 billion Based on the data above, which of the following must be true?

(03.07 MC) An economy in long-run equilibrium experiences a significant negative supply shock. If the government takes no action to address this, what would occur in the short run?

(04.01–04.07 HC) For all graphs, be sure to correctly and completely label all axes and curves and use arrows to indicate the direction of any shifts.Assume that an economy is in a short-run macroeconomic equilibrium and experiences a positive demand shock. What will happen to real output and the price level as a result? Explain. Using a correctly labeled graph of the money market, illustrate the impact of the positive demand shock. What will happen to the price of previously issued bonds? Explain. What is one policy action that the central bank could take to offset the change in the nominal interest rate from part (b)? Assume a limited reserves system. Assume that the required reserve ratio is 10 percent. If the central bank wants to decrease the money supply by $60 billion, what is the specific open-market operation (type and minimum value) that the central bank needs to conduct?