Understanding Macroeconomics: Key Concepts and Principles

1) If the economy is in recession, the CB will decrease its target for the interest rate by increasing the money supply. Another alternative is that the Gov decides to decrease taxes

2) According to the principal of monetary neutrality: In the long run the only effects of a decrease in the monetary supply is to reduce the agg price level...

3) Which of the following statements is false? According to the Solow's model, the contribution of the TFP to the GDP growth is computed as a residual, once we have subtracted the contribution physical & human capital.

4) If the nominal GDP is 1.6M, & real GD is 1.0M, the deflator is: 160

5) The nominal rate of unemployment around which the unemployment rate fluctuates is called the Natural rate of unemployment

6) Which of the following is not included in the M1 of the stock of money: savings account deposits

7) Which of the following statements is false? Automatic stabilizers cause that the government spending...

8) The Labor forces survey provides the following data for Spain: What the employment rate. 18813,3/28691,1)*100=48,70%

9) If the economy suffers a negative demand shock, the gov may increase transfer to increase the agg demand. This will reduce the budget balance for that year

10) The Labor forces survey provides the following data for Spain: What unemployment rate: ((389291,1-15901,5)-18813,3)/(38629,1-15901,5)=17,22%

11) Suppose the cost of basket 2005 was 4,200 & the cost of basket in 2004 was 4,000 = 4200/4000*100=105

12) Suppose a town where there are: 1300 people searching for a job; 400 and 8700 people who have a job... 87

13) The short run aggregate supply curve will shift to the left if: price of oil increases

14) An increase in the price of an imported car from Germany: we don't have enough information

15) If the aggregate price level falls; people will demand less money causing the interest rate in the economy to decrease

16) Suppose an economy that produces 2 goods cheese & oranges. (table): the inflation rate 2016 is larger than the growth rate of real GDP

17) When an economy is in recession, household income tends to decrease, which results in household paying a fewer taxes, this helping stimulate the economy.

18) Gross Domestic Product measures: none of the above

19) Which of the following statements is false? GDP fluctuates less than consumption over the business cycle.

20) Which of the following statements is false? If the reserves requirement is 17% an increase in deposits equal to 3500 will increase the money supply by 4216,87