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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 NameLecturer Economics 
SubjectEconomics Test 44
Test TypeMCQs
Total Questions25
Total Time20 Minutes
Total Marks100

You have 20 minutes to pass to the quiz.

Lecturer Economics Online Test No. 44

1 / 25

The aggregate expenditure curve:

2 / 25

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

3 / 25

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

4 / 25

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

5 / 25

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

6 / 25

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

7 / 25

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

8 / 25

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

9 / 25

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

10 / 25

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

11 / 25

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

12 / 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?

13 / 25

In a depression economy along a horizontal aggregate supply curve:

14 / 25

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

15 / 25

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

16 / 25

The aggregate demand curve to the Keynesian model is:

17 / 25

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

18 / 25

If investment increases then the equilibrium amount of saving:

19 / 25

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

20 / 25

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

21 / 25

An increase in current income would cause the:

22 / 25

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

23 / 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:

24 / 25

Which of the following is an increase in autonomous expenditures?

25 / 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?

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