Eco 372 Final Exam Guide

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ECO 372 Final Exam Guide 1. The largest source of household income is in the U.S. is obtained 2.The market where business sell goods and services to households and the government is called 3.Real gross domestic product is best defined as 4. underemployment includes 5.The bureau of economic analysis is responsible for whicj of the following 6.The federal reserve provides which of the following data 7. Consider if the government instituted a 10% income tax surcharge. In terms of the AS/AD model this change should have 8.if the depreciation of a country’s currency increases it aggregate expenditures by 20, the AD curve will 9. Aggregate demand management policies are designed most directly to 10.suppose that consumer spending is expected to decrease in the near future. If output is at potential output, which of the following policies is most appropriate according to the AS/AD model

According to Keynes, market economies 12) The laissez-faire policy prescription to eliminate unemployment was to

13) In the AS/AD model, an expansionary monetary policy has the greatest effect on the price level when it

14) The Federal funds rate

15) What tool of monetary policy will the Federal Reserve use to increase the federal funds rate from 1% to 1.25%?

16) If the Federal Reserve increases the required reserves, financial institutions will likely lend out

17) Suppose the money multiplier in the U.S. is 3. Suppose further that if the Federal Reserve changes the discount rate by 1 percentage point, banks change their reserves by 300. To increase the money supply by 2700 the Federal Reserve should…...

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