Macroeconomics Key Concepts: National Wealth, GDP, and Market Equilibrium
Macroeconomic Principles
1) National wealth is:
a. The sum of public and private property values, minus net claims abroad.
2) If a foreign company sets up a subsidiary in our country and the operation is financed by foreign credit:
d. The GDP increases by the amount of the investment.
3) The activities performed by operators can be grouped into markets:
a. The markets of money and goods relating to financial and real flows.
5) The national income is:
c. Net national product at factor cost.
5) The national accounting framework of an open economy where there is a public deficit, we can say without doubt that:
d. If there is a trade surplus, the private sector also registered a surplus.
6) Consider an open economy with a public sector, which exported goods worth 100 and imports worth 50. In terms of national accounting:
b. If the public sector runs a deficit, private savings must be greater than private investment.
7) Assume a model characterized by the condition of goods market equilibrium: Y = Co + c1(Y – T) + I + G. From a balance, there is an increase in public spending. In the process of adjustment towards the new equilibrium:
b. The initial expansion of demand will be bolstered by the increased consumption.
8) Assume a model described by the following condition of goods market equilibrium: Y = Co + c1(Y – T) + I + G. From a balance, there is a reduction of taxes. In the new equilibrium:
c. Income, savings, and government deficits have increased.
9) Assume an economy described by the income-expenditure model. If the government decides to increase government spending and taxes by the same amount:
b. Production and income increase, and the deficit remains unchanged.
10) In the income-expenditure model, based on equilibrium income, if consumers decide to spend more and autonomous consumption increases, which is the correct answer:
d. During the adjustment process, firms have increased production to reach the new equilibrium income level.
11) In the income-expenditure model with flexible prices and wages in the labor market, increased public spending will result in:
c. A decline in investment.
12) In the income-expenditure model, indicate the correct answer regarding the adjustment process of the economy when the current rent is greater than the income of balance:
c. Excess supply, accumulation of stocks, and reduced production.
13) The income-expenditure model defined by Y = Co + c1(Y – T) + I + G. With flexible prices and wages and balance in the labor market, increasing the money supply:
a. Will affect prices and wages but not the level of income.
14) The factors of creation of the monetary base are:
c. The purchase of bonds by the Central Bank.
15) Indicate the circumstances leading to lower cash balances:
d. An increase in the deposit-reserve ratio.
16) Consider only the money market, and you expect the central bank decides to conduct a sale of bonds on the open market. Therefore:
b. The base and the money supply decrease, and the interest rate increases.
17) As the interest rate goes down and moves from one point to another on the IS curve:
a. Investment increases, there appears excessive demand in the goods market, and income, consumption, and investment grow.
18) In the context of the IS-LM model, suppose the government decides to increase government spending. In the final balance:
d. Private surplus has increased (SI), and the level of investment has remained unknown.
19) In the IS-LM model, if the Fed increases the money supply. In the new equilibrium:
c. Savings, consumption, and income have increased.
20) When the LM shifts upward. Points out the correct statement:
c. With the initial income level, you reduce the money supply.
21) As you go along the LM curve, which passes with the speed of movement:
a. It increases when the interest rate increases and income increases.
22) Suppose two closed economies (A and B) described by the goods market model, where the marginal propensity to save are, respectively, Sa = 0.4 and Sb = 0.2. If the governments of both countries decide to increase public spending by the same amount:
b) The rent will increase twice as much in country B than in A.
24) In the IS-LM model, the government raises a goal of reducing the public deficit while maintaining a constant output level. This will require:
a. Raising taxes and buying bonds on the open market.
25) In the IS-LM model, from a balanced position, a sale of bonds on the open market and increased public spending. As a result:
c. Interest rates increase, and the income level remains undetermined.
27) An increase in unemployment benefits, together with the approval of antitrust legislation that affects the margin they charge companies to fix prices, cause in the labor market:
b. A real wage increase, leaving the natural rate of unemployment undetermined.
31) In a closed economy, the aggregate demand curve is downward sloping in relation to prices because:
d. Raising prices reduces the real money supply. The shortage of money raises interest rates, which discourages investment demand.
33) When the economy has fixed prices and shows excess money supply and excess supply of goods:
c. The interest rate decreases anyway.
34) An economy described by the model of aggregate supply and demand is in an initial state of equilibrium with unemployment. Therefore:
a. During the automatic adjustment process, real balances (M/P) increase, and the expected price level and money wages decrease.
35) An economy described by the model of aggregate supply and demand is in an initial situation of equilibrium with unemployment. During the automatic adjustment process to restore equilibrium in the medium term:
d. Real money balances and investment increase.
36) In the model of aggregate supply and demand, from an initial situation of equilibrium in the medium term, there is an increase in public spending. Indicate which of the following statements is correct:
c. In the short term, income increases, and investment remains undetermined.
37) In the model of aggregate supply and demand, from an initial situation of equilibrium in the medium term, there is an increase in public spending. Indicate the correct alternative:
d. In the new balance in the medium term, investment has declined by the same amount that public spending increased.
38) In the model of aggregate supply and demand, from an initial situation of equilibrium in the medium term, a decrease in the level of income, consumption, investment, real money, and real wages is observed in the short term. The perturbation responsible for those results as maximum likelihood:
b. A gross margin increase in profits.
39) Suppose the Phillips curve is represented by the following equation: ð(t) – ð(t-1) = 10 – 2u(t). The natural rate of unemployment is:
b. 5%
40) Suppose u(n) = 8% and ð(t-1) = 3%. If u(t) = 9%, inflation in period t:
a. Will be less than 3%
41) As the proportion of indexed contracts decreases, we expect a reduction in the unemployment rate generates:
b. Less increasing inflation
42) Suppose the central bank wants to reduce inflation by 6 percentage points, where u(n) = 5% and a = 0.6 in the Phillips equation. How many points per year of excess unemployment are required to reduce inflation by the desired amount within 2 years?
A. 10.
43) If the t/i is greater than the actual t/i Nominal level:
c. The expected price is less than Pt+1.
45) In accordance with the alternative view, being within the production possibility frontier:
a. Can be efficient if we consider together the production and fulfillment of needs.
46) In accordance with the alternative view, property:
b. Guarantees the exercise of responsibility.
47) The priority of the right to use means:
c. That there are inherent limitations to property.
48) According to the alternative view:
b. The element of creativity is the work itself.
49) Agree with the alternative view:
b. The wage is to provide for the needs of the person.
50) According to the VA, wage determinants should be:
a. Productivity, the situation of the company, the common good, and the needs of people.
51) According to the VA, the proper sequence for the concepts of ownership, capital, and labor is:
d. Property, labor, capital.
52) According to the VA, relations between capital and labor relations:
b. Meet the anteriority and superiority of work and dependence on capital.
53) The word capitalism:
c. Can only refer to the market economy.
54) According to the VA:
b. The company is a unit of cooperation that makes possible the production of goods and services.