Macroeconomics and Savings Exploration Paper

ECON 212 Macroeconomics Review Test #2SPRING 20144/29/2014

Term: ___________________________________________________________

1 . According to _____________ Theory, an overall economy is thought to always be by full employment (or rapidly returning to that level).

1 . Keynesian

2 . Smithian

a few. Classical

4. Traditional

installment payments on your According to the Time-honored Theory, the degree of water in the " Bathtub” (employment, income, and output) is always in the maximum since _________ is usually (are) thought to create Demand. �      1. International Operate

2 . Federal government

3. Source

4. All the above

3. Inside the Classical Bath tub Model the level of the water in the tub represents the working economic climate of ______________ earning salary and creating output.      1. employment

2 . financial savings

3. expenditure

4. non-e of the above

4. Inside the Classical Bath tub Model the leakage (withdrawal) represents profits saved that may be then took out by businesses and re-injected into the overall economy as ____________

1 ) employment

2 . savings

several. investment

4. non-e of the previously mentioned

5. Inside the Classical Bath Model the water flowing out of the tub (leakage) includes ______________.      1. Government

2 . Net Export

three or more. Savings

some. non-e of the above

six. Classical Economics assumes there may be neither __________ nor worldwide trade affiliated with the economy.

1 . savings

2 . government

three or more. households

5. none in the above

six. The Law of Markets (Ricardo, Mill, et al) argues that economic depression (low business activity) is because of ___________________.

1 ) a earlier inflation

2 . a lack of require

3. too little of supply

4. a earlier deflation

almost eight. The Law of Markets (Ricardo, Mill, et al) states that business activity could be increased by simply stimulating _______________.

1 . source

installment payments on your demand

several. inflation

4. deflation

9. The importance of the job of __________________ was translated to suggest, supply makes its own demand.

1 . Steve Maynard Keynes

2 . Jean-Baptiste Say

a few. Your Professor

4. Hersker Smith

12. Adam Smith's ___________ economics is the idea that an overall economy with much less government limit serves persons best for allowing free allocation of assets.   �      1. ceteris paribus

2 . carpe diem

several. laissez realiser

4. none of the previously mentioned

11.  Adam Smith's answers of nationwide economic living standards started to be known as the ___________ Theory.   �

1 . Keynesian

2 . Classical

3. Socialist

4. Traditional

12. Inside the Classical Theory, savings is usually linked to expense through a _________ interest rate.

1 ) flexible

2 . constant

three or more. Federal Hold

4. none of the over

13. In the Classical Theory, savings are borrowed by _______________ and spent because investment for capital products. �

1 . federal government

2 . households

3. foreign markets

four. businesses

14. The Keynesian Theory " Bathtub” is definitely illustrated beneath.  Increasing runs in one or more of the spending variables (C, I, G or NX) will, ceteris paribus, __________ the salary, employment, and output (water level inside the tub).

1 ) increase

installment payments on your decrease

3. maintain

4. non-e from the above

12-15.  The Keynesian Theory " Bathtub” can be illustrated below. � In the event Leakages (withdrawals) exceed the inflows, then employment, cash flow and outcome (water level in the tub) will _________________.

1 ) increase

2 . decrease

a few. stay the same

4. none in the above

of sixteen. The Keynesian Theory " Bathtub” is definitely illustrated above. � In the event injections increase with regular leakages, the degree of water (income, employment and output) is going to __________.

1 . increase

2 . stay

3. reduce

4. none of the above

17. The Keynesian Theory " Bathtub” is illustrated above. � If leakages increase...