Economics Test
 

:drink

Alright I have this economics test, take home style. I went through about the whole thing with no problem, but theres these 6 questions that I just have no idea, cant find in the book, not on google, no where. So, fellow warpathers, if any of you are a economics/ Keynesian wiz, please help....

here are the questions....

1) The French Economics Jean Baptiste say transformed the equality of total outpout and total spending inot a law that can be expressed as follows:
a) Unemployment is not pissible in sthe short run.
b) Demand and supply are never equal.
c) Supply creates its own demand
D) Demand Creats its own Supply

2) If the economy were left on its own without the interference of government or the Fed, it would move towards an equiliburium rate that would produce, with only minor interruptions, full employment without inflation. What school supports this view?
a. Classical
b. Keynesian
c. Monetarism
d. Supply-Side
e. Neo Keynesian

3)Keynes once remarked that, in the long run, were all dead. He was responding to the conventional wisdom of classical economics who aregued that..
1. the supply curve should reman vertical in the long run
2. World War I was fought to free Britian from Economic ruin
c. Depression was only a short run, temporary departure from full employment equilibrium
d. funeral plots need to be determined by the market
e. Market-based realities cause the estate tax to be too high

4) Keynesians:
a) accept the countercyclical policy of doing nothing, that is, allowing hte market forces to work.
b) Belive that the level of aggragate demand in the 1930's was sufficient to generate full employment
c) accept the fact that policymakers should eliminate inflation first before focusing on unemplyment
d) Focuse on increasing aggregate demand in order to stimulate the economy
e)were prepared for the events that beset our economy in the 1970's and 1980's

5) If the economy is experiencing unemplyment equilibrium, the Keynesian school recommends that the government:
a) Do nothing to stiumulate the economy
b) Undertake the fiscal policy to stimulate aggregate demand
c) Undertake fiscal policy to stiumulate aggragate supply
d) Balance the budget to stimulate aggregate demand
e) Cut Gov't spending to eliminate deficit spending and cut the national debt.

6) Consider the Keynesian consumtion function. If disposable income is greater than the break even level of disposal income, then the households will be:
a. investing
b. borrowing
c. dissaving
d. saving


If anyone knows any of those, it will greatley help me out a ton. Thanks guys

I'm not sure, but I think:

1) C
2) A
3) C
4) D
5) B
6) D


I had to dig deep into the recesses of my mind to recall my Econ class.

wow I hate economics, good luck gmanc711

[QUOTE=Mattyk72]wow I hate economics, good luck gmanc711[/QUOTE]

and to think I was going to tell gmanc711 to ask you what the answers were

Yeah it is quite b.s., plus in the class theres this girl.... AMAZING GIRL its so freaking hard to concentrate... well on economics, I defintley take the time to focus on Mary Beth ( what a sexy name ). Anyways thanks for the help Smoot, and the encouragment(lol) matty.

[QUOTE=smootsmack]and to think I was going to tell gmanc711 to ask you what the answers were[/QUOTE]
finance and economics are my weak points

I'm struggling through managerial finance right now, as long as I do ok on the final I should be alright, I can't wait til it's over!

I have a few more questions for any of you economics people out there... this test is really whooping my ass..

1. Which of the follwing with SHIFT the consumption function downward
c. Legislation making credit harder to obtain
d. Lower Tax Rates
e. Techonlogial breakthrough


More to come I'm sure...

I think it's E-technological breakthrough

The take home exams are usually the hardest. Good luck...

[QUOTE=cpayne5]The take home exams are usually the hardest. Good luck...[/QUOTE]


I just went to my friends for some help. You konw why they are the hardest? Because you know they are coming, so when your in class and your not feeling it, your like hell I'll just relax we have a take home. Or if I want to sleep in, i'm just like f- it , theres no attendacne policy and I got a take home! I'm regreting it, but its my own fault, so I'm just trying to do good enough not to kill the A i have going right now. Thanks for the help Smoot. If I have any ohter questions ( its due tue ), do you mind if I pop you a PM?

[QUOTE=Gmanc711]I just went to my friends for some help. You konw why they are the hardest? Because you know they are coming, so when your in class and your not feeling it, your like hell I'll just relax we have a take home. Or if I want to sleep in, i'm just like f- it , theres no attendacne policy and I got a take home! I'm regreting it, but its my own fault, so I'm just trying to do good enough not to kill the A i have going right now. Thanks for the help Smoot. If I have any ohter questions ( its due tue ), do you mind if I pop you a PM?[/QUOTE]

sure, just remember if the answers are wrong zackmills hijacked my IP address and password ;) :Smoker:

[QUOTE=Gmanc711]I have a few more questions for any of you economics people out there... this test is really whooping my ass..

1. Which of the follwing with SHIFT the consumption function downward
c. Legislation making credit harder to obtain
d. Lower Tax Rates
e. Techonlogial breakthrough


More to come I'm sure...[/QUOTE]
i'd say c, cause that means its harder to get extra money to spend... tech usually makes things cheaper and creates new demand...

[QUOTE=That Guy]i'd say c, cause that means its harder to get extra money to spend... tech usually makes things cheaper and creates new demand...[/QUOTE]

You know I think you're right because tech would shift the curve to the right (or upward)

damn that zackmills for hijacking my IP! :madani: LOL

Gmanc711, maybe you should be PMing That Guy

the problem with google and your keynes quote... you searched for "were" when you meant to search for "we're"...

here's a bio link:
[url]http://www.brainyencyclopedia.com/encyclopedia/j/jo/john_maynard_keynes.html[/url]

his main thing was to save surplus in good times to even out bad times, so i'd say A, since he was all for government intervention during a depression (whereas C suggests a view of letting it run its course)...

socio-economic overview pdf as html:
[url]http://64.233.161.104/search?q=cache:hQNQT499v6cJ:www-personal.umich.edu/~franzese/ps641.ecphil.powerideas.pdf+%2Bkeynes+%2B%22we%27re+all+dead%22&hl=en[/url]

[QUOTE=That Guy]the problem with google and your keynes quote... you searched for "were" when you meant to search for "we're"...

here's a bio link:
[url]http://www.brainyencyclopedia.com/encyclopedia/j/jo/john_maynard_keynes.html[/url]

his main thing was to save surplus in good times to even out bad times, so i'd say A, since he was all for government intervention during a depression (whereas C suggests a view of letting it run its course)...[/QUOTE]

Unless I'm reading it wrong, that question asks what the conventional wisdom of classical economists was, and that was laissez-fair approach or C, right?

everything2.com post on the quote:
[url]http://everything2.com/index.pl?node_id=732458&lastnode_id=87992[/url]

and on keynes:
[url]http://everything2.com/index.pl?node_id=87992&lastnode_id=732458[/url]

and oops, i misread the question, the answer is C, cause the question asked what the quote was [b]in response to[/b]... my bad :(

so:

1. Which of the follwing with SHIFT the consumption function downward
c. Legislation making credit harder to obtain

3)Keynes once remarked that, in the long run, were all dead. He was responding to the conventional wisdom of classical economics who aregued that..
c. Depression was only a short run, temporary departure from full employment equilibrium

that's two down at least ;)

link has the direct quote...
[url="http://216.239.39.104/search?q=cache:5U2FVnKfBi0J:cepa.newschool.edu/het/profiles/say.htm+French+Economics+Jean+Baptiste&hl=en"]http://216.239.39.104/search?q=cache:5U2FVnKfBi0J:cepa.newschool.edu/het/profiles/say.htm+French+Economics+Jean+Baptiste&hl=en[/url]

1) The French Economics Jean Baptiste say transformed the equality of total outpout and total spending inot a law that can be expressed as follows:
c) Supply creates its own demand


and btw, its Jean Baptiste Say... there's 2 million Jean Baptistes running around ;)

[url]http://everything2.com/index.pl?node_id=1141020[/url]

2) If the economy were left on its own without the interference of government or the Fed, it would move towards an equiliburium rate that would produce, with only minor interruptions, full employment without inflation. What school supports this view?
c. Monetarism

[url]http://everything2.com/index.pl?node_id=1141028&lastnode_id=1141024[/url]

"Keynes felt that by lowering wage, you were lowering the money in circulation, which would reduce the demand. What would basically happen was that there would be less money available to invest."

it's all about investing in an ecomony, not saving, I'd go with A...

6) Consider the Keynesian consumtion function. If disposable income is greater than the break even level of disposal income, then the households will be:
a. investing

5) If the economy is experiencing unemplyment equilibrium, the Keynesian school recommends that the government:
b) Undertake the fiscal policy to stimulate aggregate demand

keynesians go into deficit spending so businesses are encouraged to increase wages, which in turn increases the money available to invest (ie demand)...

4) Keynesians:
d) Focuse on increasing aggregate demand in order to stimulate the economy

see post above...

that covers all the questions then... hope this helps (i do believe i've provided the correct answers, but no warranties ;))

UGH, sorry

2) If the economy were left on its own without the interference of government or the Fed, it would move towards an equiliburium rate that would produce, with only minor interruptions, full employment without inflation. What school supports this view?
a. Classical

monetarism is very involved with inflation etc, classical economics believes controlling the money supply controls inflation... so i only disagree with SS's answer to number 6 from the first batch ;)

1) C
2) A
3) C
4) D
5) B
6) A

and

1) c (choices were c, d, or e... i believe its the first one)

sorry for the couple of corrections in there, this is why taking tests at 2am is a bad idea...

LOL this is great, come to the Warpath discuss the Redskins and get help with your homework!

I know! LOL. I'm gonna have to holla at you guys next semester! Anyone BA majors?

We should all post our areas of expertise and education backgrounds, LOL.

Suck it in guys.... theres a couple more left. ( who has a 100 QUESTION test anyways???) First though, I seriously cant thank you guys ( Smootsmack/That Guy) enough for the help, you're really helping me out bigtime, and anyone else who tried but just dosent know. I really really appreciate the time, so thank you.

The Final Instalment in GMANC711's Economics test.....

23. Suppose Equiliburum GDP is currently 800 Billion and investment is 100 billion. If an increase in the interest rate reduced investment from 100 billion to 75 billlion, and the mpc is .8, the new level of Equiliburm is...
a. 500
b. 600
c. 675
d. 775
e. 800 (all in billions)

25. Assume that an economy's real GDP muliplier is 4. If this economy is in equilibrium at 2,000 billion, then which one of the following actions will bring it to a full employment equiliburm of 1,500 billion?
a. 500 billion spending cut
b. 500 billion spending increase
c. 125 billion spending cut
d. 125 billion spending increase
e. 2,000 billion spending cut

36. The full emplyment level of real GDP can be represented on an aggregate suplly and demand diagram as a:
a. vertical line
b. upward-sloping line
c. horixontal line
d. downard sloping line ( I think its A, but I'm not sure)

40. Suppose the economy is on the classical range of the aggregat supply curve, and has a problem with inflation. According to the Keynesian theroy, which of the following is an appropirate discretionary fiscal policy to use in this situation?
a. A reduction in the money supply
b. Less gov regulation
c. increase in federal spending
d. higher taxes

Well, *I THINK* that is the end; as I have awnsers for most of the other problems. Once again, I cant thank you guys enough for the help with this. Matty, we should start a hw thread. So far Joe Crisp is the only one to help get me an A in a class, so if Smootsmack/Thatguy are succeful, we may have a competition brewing, LOL. Thanks guys.

Um, I think you're right about A for question number 3. As for the others, I'll have to think about it

ok, Redskins P, what's your question? :)

[QUOTE=smootsmack]Um, I think you're right about A for question number 3. As for the others, I'll have to think about it

ok, Redskins P, what's your question? :)[/QUOTE]

I'll holla at you in a couple of months SS! Thanks though.

I lied. This is by far the hardest test I have ever taken in my life. If I had to take this in class, I would just put down C's for all my awnsers and walk out. So here come another wave of questions. After I post these I will have posted over 20 questions I think and you guys have provided me with at least 3/4 of the awnsers already and I hope some more. Seriously, smootsmack, that guy, and anyone else who provides awnsers, PM me your names and adresses and I'll send you a christmas card, I shit you not, because you guys are saving my ass.
24. A 2,000 decrease in investment will shift the aggregate expenditures curve down by?
a. Exactly 2,000 and will decrease the quilibrium level of GDP by exactly 2000
b.Exactly 2,000 and will decrease the quilibrium level of GDP by less than 2000
c.Exactly 2,000 and will decrease the quilibrium level of GDP by more than 2000
d. less than 2000 and will decrease the equilibrium level of real GDP by less than 2000.....

39. An increase in government spending will have the greatest expansionary impact on the economy if its combined with...
a. A tax increase
b. a tax cut
c. unchanged tax revenue
d. none of the above is true

42.Suppose inflation is a threat because the current aggregate demand curve will increase by 600 billion at any price level. If the marginal propensity to consume is.75, federal plicymakers can follow the Keynesian economics and restrain inflation by:
a. decreasing tax revenues by 600 billion
b. decreasing transfer payments by 200 billion
c.increasing tax revenues by 200 billion
d. increasing government purcheses by 150 billion

44. Assume the marginal propensity to consume (MPC) is .75 and the government increases taxes by $250 billion. The aggragate demand curve will shift to the...
a) left by 1,000 billion
b) left by 750 billion

46. Assume Congress entacts a 500 billion increase in spending and a 500 billion tax increase to finance the additional government spending. The result of this balanced budget approach is a:
a. 500 billion decrease in aggregate demand
b.500 billion increase in aggragate demand
c. 1,000 billion decrease in aggregate demand
d. 1000 billion decrease in aggregate demand.
67. In the US economy, the effect on federal tax revenues and spending of a decrease in emplyment is to:
a. Cut tax revenues and reaise expenditures
b.cut spending and raise tax revenues
c. rasie both tax revenues and expenditures.
d. Cut both spending and tax revenues

I swear thats it. I have posted every single question I cant find an awnser too. Once again guys, your awsome for helping out.

sleeping now, if no one gets to it, i'll help you later... (be back in 8 hours... these answers are all online though, i've been able to find and cross reference them thusfar)

expertise: nearly anything you need ;)

actually study: CE/EE/CS/technical theatre (audio/lighting)

Numbers are not my forte...but I do know a certain CrazyCanuck who might be able to help you out

The numbers thing is what is killing me. I hope someone knows somthing and can help, but in all honesty if not, I dont really care. You guys already gave me more help they I could have expected. CC, That guy if you do see it and know it, please let me know, if not no big deal either. I'm more than happy already.

Jesus I'm glad I graduated from college already. Good luck GMANC.

Alright I just handed in the test. I'm just hoping for a grade thats not gonna kill my average, and will leave me in good shape to make up ground on the last test. I just want to give one final thank you to that-guy, smootsmack or anyone who took the time to read it through....

Remember, the Warpath.net... Redskins Discussion for the Knowledgable fan......Site to post your test questions you dont know the awnsers too.
Thanks again guys, late.

lol, your welcome for any help i could provide... i can't do the math without the equations... i googled for them, but the first 4 pages are mainly test questions and such :(

tell us how you did though, and if we screwed those answers up or not...

Yeah, I had the equations, just didnt knwo how to use them. Either way, I'm defintley better off than I would have been w/o you guys, I'll proboly get the test back tuseday, so I'll give you guys the awnsers on the ones you guys did. Thanks though.

Well Guys, got the test back 83%! Not too bad for that test, it was really hard. Anyways, you guys got just about all of them right, except Smootsmack had the awnser to #6 right, then ThatGuy had me change it to the wrong awnser!!!! LOL! Anyways, it was a very difficult test and you guys defintley helped. Thanks!

In fact, I just got my final take home with it, so I might have a few questions later. Nothing like last time though, I'm blowing through this test pretty well, but just have a couple blips.

... I guess thats why I should have gone to class last time too.