Macro economic . | Business & Finance homework help

 1-the mainstream view of macro instability is thata)changes in investment shift the aggregate demand curve and thus cause changes in real GDPb)bursts of innovation put the economy on an unsustainable growth path ,eventually producing recessingc)changes in the money supply directly cause changes in aggregate demand and thus cause changes in real GDPd)changes in technology and resource availability are the two main sources of fluctuations of real GDP2-as it relates to international trade ,dumpinga)constitutes a general case for permanent tariffsb)is the practice of selling goods in a foreign market at less than costc)is defined as selling more goods than allowed by import quotad)is a form of price discrimination illegal under US antivirus laws3-the exchange rate system currently used by the industrially advanced nation is :a)the managed floatb)the bretton woods systemc)the gold standardd)a fixed rate system4-in the US balance of payment ,foreign purchase of assets in the united states are aa)foreign currency in flowb)debit ,or out paymentc)current account itemd)foreign currency outflow5-when the actual rate of inflation exceed the expected ratea)nominal wages will declineb)firms will experience rising profits and thus increase their employmentc)the unemployment rate will temporarily rised)the actual rate of inflation will fall6-economist Milton friedman is most closely associated witha)monetarismb)the rational expectations theoryc)supply side economicsd)Keynesian economics7-which one of the following statements is correct under the theory of supply side economics ?a)transfer payments increase incentives to workb)high marginal tax rates severely discourage work ,saving and investmentc)increases in social security taxes and other business taxes shift the aggregate supply curve to the rightd)the federal reserve should adhere to a monetary rule that limits increases in the money supply to a 5 percent annual rate7-which one of the following statements is correct under the theory of supply side economics ?a)transfer payments increase incentives to workb)high marginal tax rates severely discourage work ,saving and investmentc)increase in social security taxes and other businesses taxes shift the aggregate supply curve to the rightd)the federal reserve should adhere to a monetary rule that limits increases in the money supply to as percent annual rate8-which one of the following is not included in the current account of a nations balance of payments ?a)its purchases of real assets abroadb)its goods importsc)its goods exportsd)its net investment income9-when most consumers and firms reduce spending only because they expect other consumers and firms to reduce spending and recession resultsa)an adverse aggregate supply shock has occurredb)a coordination failure has occurredc)a real business downturn has occurredd)a self correction has occurred10-a major difficulty with the argument that trade barriers are necessary because foreign workers are paid low wages is thea)labor costs and product prices are not relatedb)wage rates and labor productivity are inversely relatedc)wage rates and labor productivity are directly relatedd)there is no discernible relationship between wage rates and labor productivity11-the following are hypothetical exchange rates :2 euros =1 pound ;$1 =2 pound .we can conclude thata)1 euros =$2b)$1 =4 eurosc)$1 =5 eurosd)1 euros =$5012-a market in which the money of one nation is exchange for the money of another nation is aa)foreign exchange marketb)resource marketc)stock marketd)bond market13-an economy s infrastructure refers to itsa)financial and banking institutionsb)public capital goods ,suck as roads ,schools and power facilitiesc)surplus supplies of unskilled labord)land and natural resources14-which one of the following statement about efficiency wages is correcta)an efficiency wage is a wage that automatically rises with the national index of labor productivityb)an efficiency wage is an above market wage that minimizes a firms labor cost per unit of outputc)an efficiency wage is a wage payment necessary to compensate workers for risk of injury on the jobd)an efficiency wage is a wage that contains a profit sharing component as well a traditional hourly pay15-the mainstream view is that macro instability is caused bya)government interference in the economyb)consumption “booms”and bustsc)erratic growth of the nations money supplyd)significant changes in investment spending16-which one of the following groups of economics is the most likely to favor annually balanced federal budget ?a)supply side economistsb)rational expectations economistsc)functional finance economistsd)mainstream economists17-rational expectation theory is based on the assumption thata)both product and resource markets are very competitiveb)product markets are competitive but resource markets are monopolisticc)wages and prices are flexible upward ,but inflexible downwardd)both product and resource markets are monopolistic18-an excise tax on a import good that helps shield domestic producers of the good is called aa)protective tariffb)import quotac)revenue tariffd)voluntary export restriction19-suppose the price (no international trade price) of wheat is $3.50 a bushel in the united states while the world price is $4.00 a bushel .assuming no transportation costs ,the united states willa)have a domestic shortage of wheatb)import wheatc)export wheatd)neither export nor import wheat20-which one of the following statements about national infrastructure is correct ?a)a nations infrastructure refers to its stock of technologicalb)a nations infrastructure refers to its ability to realize economies of scalec)a nation infrastructure refers to the productivity of its labor forced)a nations infrastructure refers to public capital goods such as highways and utilities 

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