Decline in Aggregate Demand Case Assignment
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages
Description/Paper Instructions
Decline in Aggregate Demand Case Assignment
An improvement in consumer confidence will cause:
The aggregate supply curve to shift to the right.
A movement down the aggregate demand curve.
The aggregate demand curve to shift to the right.
The aggregate demand curve to shift to the left.
If consumers spend 80 cents out of every extra dollar received, the:
MPC is 0.20.
Multiplier is 5.
Multiplier is 20.
MPS is 0.80.
Saving:
Is equal to income plus consumption.
Is the part of disposable income that is not yet spent.
Only includes dollars deposited in a financial institution.
Is a part of aggregate demand.
Which of the following could cause a recession?
An increase in aggregate supply
A decline in aggregate demand
A decline in unemployment
An increase in government spending
Figure 12.1Assuming aggregate demand is represented by AD1, the equilibrium level of income in Figure 12.1 is:
$6.0 trillion.
$5.6 trillion.
$5.2 trillion.
$800 billion.
Which of the following is the largest component of aggregate demand for the U.S. economy?
Government expenditures
Consumption
Net exports
Business investment
According to Keynes, which of the following is possible at the intersection of aggregate supply and aggregate demand?
Inflation and high levels of unemployment, but not full employment
Full employment or high levels of unemployment, but not inflation
Inflation, full employment, or high levels of unemployment
Full employment, but not high levels of unemployment or inflation
Figure 12.1Assuming aggregate demand is represented by AD1, the economy depicted in Figure 12.1 confronts a real GDP gap of:
$400 billion
$560 billion.
$800 billion.
Zero.
To an economist, investment refers to the purchase of new plant and equipment by businesses.
TRUE
FALSE
Which of the following helps explain the multiplier effect?
Incomes tend to increase with inflation.
People buy a lot of luxury items.
Income is spent and re-spent in the circular flow model.
Banks only hold a fraction of their deposits on reserve.
Figure 12.2Using Figure 12.2, if Q2 represents full employment, then a shift from AD1 to:
AD3 results in a full-employment equilibrium at point W.
AD3 takes the economy past full employment to equilibrium at point Z.
AD2 closes the GDP gap.
AD2 takes the economy past full employment to equilibrium at point Y.
The multiplier is equal to:
1 – MPC.
1 ÷ MPS.
1 ÷ MPC.
MPS ÷ MPC.
If consumers save 15 cents out of every dollar received, the:
MPS is 0.15.
Multiplier is 15.
Multiplier is 0.15.
MPS is 0.85.
Fiscal restraint:
Causes a rightward shift of aggregate demand.
Causes a rightward shift of aggregate supply.
Includes tax hikes and spending cuts.
Is used to reduce a recession.
Which of the following will occur if aggregate demand is below full-employment GDP?
Recession
A stable economy
Excessive aggregate demand
Inflation
The amount of money in circulation can affect spending behavior, but it will not change aggregate demand.
FALSE
TRUE
Potential deposit creation for the entire banking system is without limit because when lending takes place, the excess reserves of one bank become deposits for another bank.
FALSE
TRUE
The smallest component of the basic money supply is in the form of:
Currency in circulation.
Savings accounts.
Traveler’s checks.
Transactions accounts.
Suppose Students Bank and Trust has zero excess reserves. If the required reserve ratio decreases:
Bank assets will increase.
The bank will be able to make more loans.
Required reserves will increase.
The money multiplier will decrease.
Without money, the process of acquiring goods and services would be much more efficient.
TRUE
FALSE
The distinguishing feature of transactions accounts is that they allow for direct payment to a third party.
FALSE
TRUE
Use the following balance sheet for XYZ Bank, which is one of many banks in a banking system.
Table 13.1—XYZ Bank balance sheetRefer to Table 13.1. With total reserves of $50,000 and a required reserve ratio of 25 percent, potential deposit creation for the banking system is equal to:
Zero.
$50,000.
$200,000.
$250,000.
Suppose the entire banking system has $10,000 in excess reserves and a required reserve ratio of 20 percent. The deposit-creation potential of the banking system is:
$50,000
$200,000
$20,000
$500
Which of the following is not true about money?
It must be minted by the government in order to have value.
It is a mechanism for transforming current income into future purchases.
It facilitates the continuous series of exchanges that characterize a market economy.
It promotes the specialization of labor.
Suppose a bank has $1,000,000 in deposits and a minimum reserve requirement of 20 percent. Then required reserves are:
$1,000,000
$1,200,000
$200,000
$880,000
When the market value of goods and services is expressed in prices, money is functioning as a:
Type of barter.
Standard of value.
Store of value.
Medium of exchange.
LaTressa takes $230 from under her mattress and deposits it in her checking account. The immediate result of this transaction is that M1:
Does not change in value.
Increases by more than $230.
Decreases by $230.
Increases by $230.
Professor Williams tutors her next-door neighbor’s son in economics. Instead of paying her for this service, the neighbor washes the professor’s car. This is an example of:
Barter.
A store of value.
A market transaction.
A monetary transaction.
When you purchase jeans at the mall, money is serving as a medium of exchange.
FALSE
TRUEWhen a bank makes a loan, dollars leave the banking system so the money supply decreases.
TRUE
FALSE
If you deposit $1,000 in your checking account, your bank is only required to hold a portion of the deposit and is allowed to lend out the balance. This illustrates the concept known as:
Fractional reserves.
Demand deposits.
Split reserves.
Money laundering.
Barter is the direct exchange of one good for another without the use of money.
FALSE
TRUE
The shape of the _____ curve determines the impact of an aggregate demand shift on prices and output.
Aggregate supply
Total cost
Production possibilities
Marginal revenue
A change in the reserve requirement affects:
Excess reserves and the discount rate.
The discount rate and the federal funds rate.
The money multiplier and excess reserves.
The money multiplier and the federal funds rate.
The chairman of the Federal Reserve Board of Governors:
Is always closely tied to the same political party as the president.
Will typically change following each presidential election.
Is elected by U.S. voters.
Serves a four-year term and can be reappointed.
If the Fed wishes to decrease the money supply it can:
Decrease the required reserve ratio.
Decrease the federal funds rate.
Buy bonds on the open market.
Raise the discount rate.
Which of the following approaches should the Fed use if it experiences large lags and mistakes in monetary policy?
Fixed rules
An eclectic approach
Fiscal policy
Discretionary policy
Ceteris paribus, if the Fed raises the discount rate, then:
The lending capacity of the banking system increases.
The incentive to borrow reserves decreases.
Excess reserves decrease.
The money multiplier decreases.
Answer the indicated questions on the basis of the information in Table 14.1. Each question is based on the original balance sheet.
Table 14.1—Monetary dataIn Table 14.1, the level of total reserves is equal to:
$80 billion.
$880 billion.
$920 billion.
$1 trillion.
According to the aggregate supply drawn under the monetarist view, which of the following would lead to a higher price level?
A decrease in the money multiplier.
The purchase of bonds in the open market by the Fed.
An increase in the discount rate.
An increase in the reserve requirement.
For a given amount of total reserves, a decrease in required reserves causes an increase in excess reserves.
TRUE
FALSE
Using the aggregate supply drawn under the monetarist view, what should happen to the equilibrium price level and quantity of output if the Fed buys bonds?
Equilibrium price level should increase, and equilibrium output should decrease.
Equilibrium price level and equilibrium output should both increase.
Equilibrium price level should decrease, and equilibrium output should increase.
Equilibrium price level should increase and equilibrium output should stay constant.
Answer the indicated questions on the basis of the information in Table 14.1. Each question is based on the original balance sheet.
Table 14.1—Monetary dataIn Table 14.1, if the Fed changes the required reserve ratio to 5 percent, the lending capacity of the banking system will eventually:
Fall by $800 billion.
Fall by $40 billion.
Rise by $40 billion.
Rise by $800 billion.
Aggregate demand is the:
Total quantity of output demanded at alternative price levels.
Quantity of new goods and services produced.
Quantity of goods demanded by the largest corporations in the country.
Total quantity of output demanded but only at full employment.
The key decision maker for general Federal Reserve policy is the:
Board of Governors.
Regional Federal Reserve banks.
Federal Advisory Council.
Federal Open Market Committee.Decline in Aggregate Demand Case Assignment
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper.
GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
CLICK ON THE LINK HERE: https://essaysolver.com/orders/ordernow
You Can Also Place the Order In www.perfectacademic.com/orders/ordernow / www.essaysolver.com/orders/ordernow
Do You Have Any Other Essay/Assignment/Class Project/Homework Related to this? Click Here Now [CLICK ME] and Have It Done by Our PhD Qualified Writers!!
Tired of getting an average grade in all your school assignments, projects, essays, and homework? Try us today for all your academic schoolwork needs. We are among the most trusted and recognized professional writing services in the market.
We provide unique, original and plagiarism-free high quality academic, homework, assignments and essay submissions for all our clients. At our company, we capitalize on producing A+ Grades for all our clients and also ensure that you have smooth academic progress in all your school term and semesters.
High-quality academic submissions, A 100% plagiarism-free submission, Meet even the most urgent deadlines, Provide our services to you at the most competitive rates in the market, Give you free revisions until you meet your desired grades and Provide you with 24/7 customer support service via calls or live chats.