Part I: Multiple Choice. When government sets floor price higher than the market equilibrium price, the policy is ______, and consumer surplus is _____ effective, maximized effective; not maximized not effective; not maximized not effective; maximized none of the above In a closed economy with government, of the following condition needs to be satisfied when the economy is at equilibrium? Y=AE = C+I+G-T S+T=I+G S+G = T+I AE = C+I+G = Yd = Y-T None of above When the Federal Reserve wants to decrease the money supply in the economy, it can apply which of the following policies? decreasing the required reserve ratio increasing the required reserve ratio decreasing the discount rate increasing the discount rate through an open market operation, by purchasing from the public through open market operation, by selling to the public I or IV or V II or III or VI I or III or V II or IV or VI None of the above When aggregate output(income) is to the right of the equilibrium level of GDP Y>(Planned) AE and there will be an unplanned rise in inventories Y<(Planned) AE and there will be an unplanned fall in inventories Y>(Planned) AE and will be an unplanned fall in inventories Y<(Planned) AE and will be an unplanned rise in inventories
Part I: Multiple Choice. When government sets floor price higher than the market equilibrium price, the policy is ______, and consumer surplus is _____ effective, maximized effective; not maximized not effective; not maximized not effective; maximized none of the above In a closed economy with government, of the following condition needs to be satisfied when the economy is at equilibrium? Y=AE = C+I+G-T S+T=I+G S+G = T+I AE = C+I+G = Yd = Y-T None of above When the Federal Reserve wants to decrease the money supply in the economy, it can apply which of the following policies? decreasing the required reserve ratio increasing the required reserve ratio decreasing the discount rate increasing the discount rate through an open market operation, by purchasing from the public through open market operation, by selling to the public I or IV or V II or III or VI I or III or V II or IV or VI None of the above When aggregate output(income) is to the right of the equilibrium level of GDP Y>(Planned) AE and there will be an unplanned rise in inventories Y<(Planned) AE and there will be an unplanned fall in inventories Y>(Planned) AE and will be an unplanned fall in inventories Y<(Planned) AE and will be an unplanned rise in inventories
Econ%201120_2012Spring_prelim1_regular_withanswerkey_0327.docx