(04.07 MC) Use the graph to answer the question that follows. The graph shows a change in an economy after the government’s decision to provide tax benefits to businesses in an effort to increase investment. What is the new point of equilibrium in the economy’s loanable funds market?

(05.04 MC) Which of the following statements about deficits and debt is true?

(05.04 MC) If in a financial year, a government’s expenditure on goods and services amounts to $200 billion, the amount it spent on social security benefits equals $150 billion, and the revenue it collected from taxes is equal to 300 billion, then which of the following statements is true?

(03.03 MC) Which of the following best describes the reason for trade-off between inflation and unemployment in the short run?

(03.05 MC) Which of the following is true if the economy is in long run equilibrium?

(03.04 MC) The production possibility curve and long-run aggregate supply curve both illustrate

(02.06 MC) Assume that in an economy, the value of the total output at current prices is $450 billion when the GDP Deflator is 150 for Year 1, and in Year 2, it is $675 billion when the GDP Deflator is 225. Which of the following statements is true in this scenario?

(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 negative 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 negative 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 5 percent. If the central bank wants to increase the money supply by $80 billion, what is the specific open-market operation (type and minimum value) that the central bank needs to conduct?

(03.06 MC) Assume an economy is in short-run equilibrium with a real output (or real GDP) of Y0 and a price level of PL0. If the government increases income taxes on all income levels, what is the likely effect?

(04.06 MC) In a banking system with limited reserves, which of the following best explains why a monetary policy cannot help a country remove the inflationary gap in the economy?