(03.06 MC) Assuming that the economy is initially in a long-run equilibrium, which one of the following scenarios would result from a sudden increase in aggregate demand in the short run?

(04.05 MC) Which of the following is true about the money supply curve in an economy?

(06.03 MC) Assume a competitive foreign exchange market between the Japanese yen and the U.S. dollar. Which of the following best explains the supply of yen in the market for yen?

(04.05 MC)Question refers to the excerpt below.”In a free government the security for civil rights must be the same as that for religious rights. It consists in the one case in the multiplicity of interests, and in the other in the multiplicity of sects. The degree of security in both cases will depend on the number of interests and sects; and this may be presumed to depend on the extent of country and number of people comprehended under the same government. This view of the subject must particularly recommend a proper federal system to all the sincere and considerate friends of republican government, since it shows that in exact proportion as the territory of the Union may be formed into more circumscribed Confederacies, or States oppressive combinations of a majority will be facilitated: the best security, under the republican forms, for the rights of every class of citizens, will be diminished: and consequently the stability and independence of some member of the government, the only other security, must be proportionately increased. Justice is the end of government. It is the end of civil society. It ever has been and ever will be pursued until it be obtained, or until liberty be lost in the pursuit.”Source: James Madison, Federalist No. 51, 1788Emphasis in the excerpt on the importance of a federal system that could protect civil rights was underscored most clearly in the early 1800s by the

  (04.07 MC) Suppose a closed economy has a national income of $260 million and $535 million in private savings. Which figure would you need to calculate national savings?

(05.01 MC) What is the effect of the government increasing social welfare and the central bank buying securities on the output and employment of an economy?

(02.07 MC) Which of the following best describes the turning points of the business cycle?

(04.07 MC) Use the graph to answer the question that follows.Assume that the market for loanable funds is in equilibrium at the rate of interest shown at point ‘R’ and the quantity of loanable funds, ‘Q,’ as shown in the accompanying graph. If there is an increase in productivity due to technological innovation, then what impact will this have on the demand for loanable funds, ceteris paribus?

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

(04.01 MC) If the government increases the level of its borrowing, what will happen to the real interest rate and the price of existing bonds?