The Demand for Loans Decrease Essay
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The Demand for Loans Decrease Essay
If the price of computers falls during a period when the average price level remains constant, which of the following has occurred?
Deflation
Inflation
A recession
A change in relative prices
Price stability refers to:A constant average price level.
An inflation rate of zero.
Increases in prices equal to or less than the growth rate of the economy.
The absence of significant changes in the average price level.
If the CPI is 119 in Year X, then it costs _______ in Year X to buy the same market basket that cost _______ in the base period.$100; $119
$19; $100
$100; $19
$119; $100
People who are not working for pay but are actively looking for work are not included in the labor force.FALSE
TRUE
During a period of inflation:Relative prices are rising, but it is not certain what is happening to average prices.
Both relative prices and average prices are rising.
Specific prices are rising, and relative prices are falling.
Average prices are rising, but it is not certain what is happening to relative prices.
The labor force is smaller than the total population because the labor force does not include:People looking for a job.
People who have jobs.
Teachers.
The very young and old.
Nominal GDP is defined as the:Dollar value of services but not goods.
Value of output in current dollars.
Value of output in constant prices.
Output produced by domestically owned factors of production regardless of where the factors are located.
Keynes believed that small disturbances in the economy would be made even greater by the market mechanism and thus government intervention was required.
FALSE
TRUE
The total amount of output producers are willing and able to produce at alternative price levels in a given time period is known as:Aggregate supply.
Real GDP.
Aggregate demand.
Macro equilibrium.
At macro equilibrium:Exports equal imports.
Aggregate demand equals aggregate supply.
Population growth is stable.
Money supply equals money demand.
According to the real balances effect, if the price level rises then the real value of savings increases and individuals will buy more output.FALSE
TRUE
According to supply-side theories, an increase in supply incentives shifts the aggregate:Supply curve to the right.
Supply curve to the left.
Demand curve to the left.
Demand curve to the right.
Which of the following is an example of the real balances effect, assuming the U.S. price level decreases?U.S. production costs stay constant and profits for businesses decrease.
The demand for loans decreases so interest rates decline and loan-financed purchases increase.
U.S. goods are less expensive for foreigners to buy and exports increase.
The purchasing power of money increases and people buy more goods.
Which of the following suggests that lower average prices stimulate more borrowing?The real balances effect
The cost effect
The profit effect
The interest rate effect
Monetary policy emphasizes the role of money and interest rates in shifting the aggregate supply curve.TRUE
FALSE
At the intersection of the aggregate supply and aggregate demand curves, the economy is experiencing:Macro equilibrium.
Full employment.
Low levels of inflation.
Population growth.
The Classical view of the economy is characterized by:Overt fiscal policy.
A laissez-faire approach.
The inherent instability of the economy.
The belief that demand creates its own supply.
Fiscal policy is the use of the government’s tax and spending powers to shift the aggregate demand curve.TRUE
FALSE
Figure 11.2—Aggregate supply and demandIndividual employment and training programs are levers most likely to be advocated by:
Keynesians.
Classical economists.
Supply-side economists.
New classical economists.
Ceteris paribus, based on the real balances effect, if the price level falls:Purchasing power increases.
Real income decreases.
Wealth decreases.
Business profits increase.
Unlike the Classical economists, Keynes asserted that:Markets would naturally self-adjust.
Wages and prices were flexible.
Laissez-faire would lead to macro equilibrium.
The economy was inherently unstable.
Macro equilibrium always occurs at an optimal level of output.FALSE
TRUE
A tax hike will increase the level of aggregate demand since the government will have more money to spend.TRUE
FALSE
The Demand for Loans Decrease Essay
RUBRIC
Excellent Quality
95-100%
Introduction 45-41 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Literature Support
91-84 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Methodology
58-53 points
Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score
50-85%
40-38 points
More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
83-76 points
Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
52-49 points
Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality
0-45%
37-1 points
The background and/or significance are missing. No search history information is provided.
75-1 points
Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
48-1 points
There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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