Blog

Suppose that the U.S. economy is initially in Long Run Macroeconomic Equilibrium. A depreciation of the U.S. Dollar (meaning, a decrease in the U.S. Dollar exchange rate) will lead U.S. real GDP to ____ in the short-run, and U.S. real GDP to ____ in the long run.  

Suppose that the U.S. economy is initially in Long Run Macroeconomic Equilibrium. A reduction in households’ expected future income will lead the U.S. ____ curve to shift and create a(n) ____ in the short run. 

According to the Multiplier Effect, a $45 billion increase in autonomous spending leads to _____ in equilibrium aggregate expenditure and real GDP.

Year Quantity of Burritos Quantity of Tacos Price of a Burrito Price of a Taco 2022 (base) 425 burritos 760 tacos $6.00 $2.50 2023 440 burritos 780 tacos $6.50 $2.70 2024 485 burritos 800 tacos $7.00 $2.80 Refer to the table above. Suppose that burritos and tacos are the only two final goods produced in this economy. The value of Real GDP in 2024 is _____.

Emma does not have a paid job. She wants a job but has not taken any steps to find one in the past two months. Emma is classified as ____.

Disposable Income Consumer Spending Saving $10,000 $16,000 -$6,000 $20,000 $24,000 -$4,000 $30,000 $32,000 -$2,000 $40,000 $40,000 $0 $50,000 $48,000 $2,000 Refer to the table above. The marginal propensity to save is ____.  

Real GDP per person was $58,000 in 2022, and real GDP per person was $61,000 in 2023. If the growth rate of real GDP per person held steady, real GDP per person would double in approximately ____.

Suppose that the U.S. economy is initially in Long Run Macroeconomic Equilibrium. A decrease in the real interest rate will lead the U.S. price level to ____ in the short-run, and the U.S. price level to ____ in the long run.  

Year Price of a Smoothie Price of a Pizza 2022 (base) $4.50 $12.00 2023 $4.75 $12.25 2024 $5.25 $12.25 Refer to the table above. Suppose that the average urban family of four consumes 30 smoothies and 45 pizzas. The inflation rate is ____ in 2023. Round your answer to the nearest one-tenth of one percent.

Suppose that the U.S. economy is initially in Long Run Macroeconomic Equilibrium. A reduction in the cost of energy will lead the U.S. ____ curve to shift and create a(n) ____ in the short run.