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There will be 25 multiple choice question in the test.
Answer of the questions will change randomly each time you start this test.
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Test Instructions:-
Test Name Lecturer Economics 
Subject Economics Test 44
Test Type MCQs
Total Questions 25
Total Time 20 Minutes
Total Marks 100

You have 20 minutes to pass to the quiz.

Lecturer Economics Online Test No. 44

1 / 25

If the marginal prosperity to consume is 0.75 then holding interest rates constant, a $1 billion increase in taxes will cause the Keynesian-equilibrium level of output to:

2 / 25

If the MPS equals 0.25 then the value of the expenditure multiplier is:

3 / 25

The tax multiplier is described by all of the following except:

4 / 25

In a depression economy along a horizontal aggregate supply curve:

5 / 25

If twenty cents out of each additional dollar of income is saved then the simple expenditure multiplier is:

6 / 25

In general crowding out causes the effect of an increase in government expenditures on output to:

7 / 25

One effect of crowding out caused by higher government spending would be to:

8 / 25

If real GDP is $80 billion below full employment, how much should government spending be increased to restore full employment if the MPC is 0.75?

9 / 25

If I and G increases by $10 billion, desired aggregate expenditure will increase by:

10 / 25

If the money supply is constant, then as the price level falls:

11 / 25

If G increases by $100 billion how much should T the increased if the government wants Y to increase by $100 billion and the MPC is 0.9?

12 / 25

The aggregate expenditure curve:

13 / 25

Aggregate expenditures would rise due to an increase in all of the following except:

14 / 25

The assumption made about desired government expenditure in the basic Keynesian model is the:

15 / 25

The aggregate demand curve to the Keynesian model is:

16 / 25

An increase in current income would cause the:

17 / 25

The correct definition of desired aggregate expenditure with a government sector is given by:

18 / 25

An increase in the foreign price level with the nominal exchange rate unchanged causes imports and exports to:

19 / 25

In the economic slowdown in the early 1990s business activity was reduced while:

20 / 25

If investment increases then the equilibrium amount of saving:

21 / 25

The 45-degreee line in the income/expenditure model shows points at which:

22 / 25

If government taxes rise by $200 and the MPS is 0.25 what is the predicted impact on desired aggregate expenditure?

23 / 25

Which of the following is an increase in autonomous expenditures?

24 / 25

According to the autonomous expenditure multiplier in the income/expenditure model, an increase in government spending increases output by:

25 / 25

When taxes are introduced into the income/expenditure model the:

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