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WorksheetsMacro Economics 26.2 - 27.2
Total questions: 10
Worksheet time: 20mins
Multipliers are found in...
contracting economies.
expanding economies.
both expanding and contracting economies.
stagnant economies.
A negative consumption shock will cause ...
a rightward shift in demand curve for labor.
a leftward shift in demand curve for labor.
a rightward move along the demand curve for labor.
a leftward move along the demand curve for labor.
A rigid wage structure after a negative shock will...
produce wages that are too high for employers to manage.
produce wages that are too low for employers to manage.
An expansionary monetary policy will lower interest rates and...
raise inflation.
lower inflation.
decrease liquidity.
cause mortgage defaults.
When a firm is optimistic (feels good) about future business opportunities...
the will decrease their demand for labor.
they will increase their demand for labor.
they will sell off plant machinery and factories.
they will close offices to decrease costs.
A counter-cyclical policy always...
attempts to increase economic fluctuations.
attempts to follow the business cycle.
attempts to decrease economic fluctuations.
attempts to decrease labor participation.
FED policymakers may use a contractionary policy when...
the economy is slowing down.
there has been a negative economic shock.
when inflation is too high.
during a recession.
An expansionary policy is...
fiscal.
monetary.
either fiscal or monetary.
neither fiscal nor monetary.
Countercyclical monetary policies always work by...
shifting the supply curve for labor.
shifting the demand curve for labor.
smoke and mirrors.
pure luck.
When the FED sells bonds to banks during an open market operation, in return it buys...
jellybeans.
peace of mind.
shares in that bank.
bank reserves.
