Exam (elaborations)
Econ 321 Exam 5 2022/23- 84 questions and answers- all correct
- Course
- Institution
Econ 321 Exam 5 2022/23- 84 questions and answers- all correct
[Show more]
Seller
Follow
NurseSallyD
Reviews received
Content preview
Econ 321 Exam 5 2022/23- 84 questionsand answers- all correct.
A competitive, profit-maximizing firm hires labor until the: - -price of output
multiplied by the marginal product of labor equals the wage.
-Consumption depends ______ on disposable income, and investment depends
______ on the real interest rate. - -positively; negatively
-If the consumption function is given by C = 150 + 0.85Y and Y increases by 1 unit, then
C increases by: - -0.85 units.
-Other things equal, an increase in the interest rate leads to: - -a decrease in the
quantity of investment goods demanded.
-National saving refers to: - -income minus consumption minus government
purchases.
-If saving exceeds investment demand and consumption is not a function of the interest
rate: - -the interest rate will fall.
-According to the model developed in Chapter 3, when government spending increases
without a change in taxes: - -investment decreases.
-In the neoclassical model with fixed income, if there is a decrease in government
spending with no change in taxes, then public saving ______ and private saving
______. - -increases; does not change
-The economy begins in equilibrium at point E, representing the real interest rate r1 at
which saving S1 equals desired investment I1. What will be the new equilibrium
combination of real interest rate, saving, and investment if the government cuts
spending, holding other factors constant? - -The graphs will go down and have a
rightward shift for its new equilibrium
-GDP= - -SUM (PixQi)
-Y=C+I+G+NX - -GDP equation
GDP=consumption+Investment+Government purchases+Net Exports
-Inflation equation - -pi=(Pt-Pt-1)/(Pt-1)
-GDP deflator equation - -Nominal GDP/Real GDP x 100
-What are the three functions of money? - -
1. medium of exchange
, 2. unit of account
3. store of value
-Monetary Base - -the sum of coins, Federal Reserve notes, and banks' reserves at the
Fed
-money multiplier - -the amount of money the banking system generates with each
dollar of reserves
-money supply - -the quantity of money available in the economy
-currency-deposit ratio - -The ratio of the amount of currency that people choose to
hold to the amount of demand deposits they hold at banks.
-reserve-deposit ratio - -The ratio of the amount of reserves banks choose to hold to the
amount of demand deposits they have.
-labor force - -employed + unemployed
-employed - -paid employees, self-employed, and unpaid workers in a family business
-unemployed - -people not working who have looked for work during previous 4 weeks
-Cobb-Douglas production function - -A production function that assumes some degree
of substitutability among inputs.
Y=(AK^alpha)(L^1-alpha)
-marginal product of labor - -the change in output from hiring one additional unit of
labor (1-alpha)Y/L
-The larger is the MPC (the closer it is to 1), the _____ will be the decline in
investment, and the ____ will be the increase in the interest rate. - -smaller, smaller
-classical model - -a model of decision making that seeks to maximize economic or
other outcomes using a rational choice process
-K - -capital
-Pi - -Inflation
-L - -labor
-exogenous - -produced from without; due to external causes
-price of L - -wage
-price of k - -rental rate
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller NurseSallyD. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
78861 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now