Bonus 1) Refer to Figure 16-4. In the graph above, supp initially at point A. The movement of the economy to poi graph illustrates the effect of which of the following poli Congress and the president? A) an increase in transfer payments B) an increase in interest rates C) an increase in the marginal income tax rate D) an open market purchase of Treasury bills

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7:411
E Initial Questions 3 - Spring 2021... •••
In GDP.
Figure 16-4
Price level
SRAS
LRAS
AD,
AD2
Real GDP
Bonus 1) Refer to Figure 16-4. In the graph above, suppo
initially at point A. The movement of the economy to poin
graph illustrates the effect of which of the following polic
Congress and the president?
A) an increase in transfer payments
B) an increase in interest rates
C) an increase in the marginal income tax rate
D) an open market purchase of Treasury bills
Transcribed Image Text:7:411 E Initial Questions 3 - Spring 2021... ••• In GDP. Figure 16-4 Price level SRAS LRAS AD, AD2 Real GDP Bonus 1) Refer to Figure 16-4. In the graph above, suppo initially at point A. The movement of the economy to poin graph illustrates the effect of which of the following polic Congress and the president? A) an increase in transfer payments B) an increase in interest rates C) an increase in the marginal income tax rate D) an open market purchase of Treasury bills
7:411
E Initial Questions 3 - Spring 2021... •••
Figure 15-2
Interest
MS2
MS1
rate, i
4%
3
A
MD
Quantity of money
(billions of dollars)
900
950
18) Refer to Figure 15-2. In the figure above, the move
point B in the money market would be caused by
A) an increase in the price level.
B) a decrease in real GDP.
C) an open market sale of Treasury securities by the Fec
D) a decrease in the required reserve ratio by the Federa
19) Which of the following is an appropriate discretiona
equilibrium real GDP falls below potential real GDP?
A) an increase in government purchases
B) an increase in the supply of money
C) an increase in individual income taxes
D) a decrease in transfer payments
20) Contractionary monetary policy on the part of the Fe
A) an increase in the money supply, an increase in intere
increase in GDP.
B) a decrease in the money supply, an increase in interes
in GDP.
C) an increase in the money supply, a decrease in interes
in GDP.
D) a decrease in the money supply, a decrease in interes
in GDP.
Transcribed Image Text:7:411 E Initial Questions 3 - Spring 2021... ••• Figure 15-2 Interest MS2 MS1 rate, i 4% 3 A MD Quantity of money (billions of dollars) 900 950 18) Refer to Figure 15-2. In the figure above, the move point B in the money market would be caused by A) an increase in the price level. B) a decrease in real GDP. C) an open market sale of Treasury securities by the Fec D) a decrease in the required reserve ratio by the Federa 19) Which of the following is an appropriate discretiona equilibrium real GDP falls below potential real GDP? A) an increase in government purchases B) an increase in the supply of money C) an increase in individual income taxes D) a decrease in transfer payments 20) Contractionary monetary policy on the part of the Fe A) an increase in the money supply, an increase in intere increase in GDP. B) a decrease in the money supply, an increase in interes in GDP. C) an increase in the money supply, a decrease in interes in GDP. D) a decrease in the money supply, a decrease in interes in GDP.
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