ECO 372 EDU Remember Education--eco372edu.com

1. ECO 372 All Assignments (2 Set) FOR MORE CLASSES VISIT www.eco372edu.com This Tutorial contains 2 Papers/PPT for each Assignment ECO 372 Week 1 Assignment Ten Principles of Economics and the Data of Macroeconomics (2 Papers) ECO 372 Week 2 Assignment The Real Economy in the Long Run (2 Papers) ECO 372 Week 2 Principles of Economics and the Data of Macroeconomics (2 Papers) ECO 372 Week 3 Team Assignment Money and the Prices in the Long Run and Open Economies (2 Papers) ECO 372 Week 4 Team Assignment Short-Run Economic Fluctuations (2 PPT) ECO 372 Week 5 Team Assignment Major Debates over Macroeconomic Policy (2 Papers) ECO 372 Week 1 Individual Assignment Macroeconomic Terms ECO 372 Week 1 Individual Assignment Economic Definitions Worksheet (New)

2. ECO 372 Week 1 Knowledge Check ECO 372 Week 1 Discussion Question 1 ECO 372 Week 1 Discussion Question 2 ECO 372 Week 2 knowledge Check ECO 372 week 2 Team Weekly Reflection Economic Forecasting Paper (2 Papers) ECO 372 Week 2 Discussion Question 1 ECO 372 Week 2 Group Discussion Question ECO 372 Week 2 Individual Assignment Product Purchases and the Economy ECO 372 Week 3 Discussion Question 1 ECO 372 Week 3 Group Discussion Question ECO 372 Week 3 knowledge Check ECO 372 Week 3 Team Assignment Fiscal Policy Paper (New) ECO 372 Week 4 Discussion Question 1 ECO 372 Week 4 Group Discussion Question ECO 372 Week 4 Team Reflection Supply Chain and Demand Model ECO 372 Week 4 Individual Assignment International Economics Paper (New) ECO 372 Week 4 knowledge Check ECO 372 Week 5 Discussion Question 1

3. ECO 372 Week 5 Discussion Question 2 ECO 372 Week 5 Team Assignment Deficit and Debt Presentation (New) ECO 372 Week 5 knowledge Check ============================================== ECO 372 Apply Week 4 Money and the Federal Reserve Homework (100% Correct) (All Possible Question/Answers) FOR MORE CLASSES VISIT www.eco372edu.com Money is: Use the following table to determine the levels of M1 and M2 in the United States.

4. Money Categories in the United States Asset Amount (billions of dollars) Currency $82 Demand deposits 80 Money market funds 44 Other checkable deposits 37 Savings deposits 460 Small time deposits 22

5. Traveler's checks 4 The part of the Federal Reserve that determines and implements the nation's monetary policy and controls the money supply to promote stable prices and economic growth is the: a. Sam gives the grocery store clerk a $5 bill to pay for his purchase. b. Bill looks at the $20 price tag on a clock to see how much money he would need to purchase it.

6. c. Maria writes a check to pay her electric bill. d. Susan transfers some of her wealth from her checking account into a certificate of deposit that earns interest. • The Federal Reserve District Banks are divided:

7. The M1 measure of money consists of the sum of The Federal Reserve System consists of which of the following? • Federal Deposit Insurance Corporation and Controller of the Currency Other things being equal, an expansion of commercial bank lending

8. • changes the composition, but not the size, of the money supply. The reason for the Fed being set up as an independent agency of government is to When a consumer wants to compare the price of one product with another, money is primarily functioning as a If the reserve requirement is 20% and commercial bankers decide to hold additional excess reserves equal to 5% of any newly acquired

9. checkable deposits, then the effective monetary multiplier for the banking system will be If you put a $20 bill in the pocket of your winter coat at the beginning of spring so that you will be surprised when you find it again next winter, you are using money as Which definition(s) of the money supply include(s) only items that are directly and immediately usable as a medium of exchange? Money is "created" when

10. The equilibrium rate of interest in the market for money is determined by the intersection of the The Federal Open Market Committee (FOMC) The required-reserve ratio is equal to a commercial bank’s The coupon rate is the

11. Money eliminates the need for a coincidence of wants in trading primarily through its role as a One hundred percent reserve banking refers to a situation in which banks' reserves equal One hundred percent of their Fractional reserve banking refers to a system where banks The functions of money are to serve as a

12. A bank’s net worth is equal to its What function is money serving when you deposit it in a savings account? A wealthy executive is holding money, waiting for a good time to invest in the stock market. This action would be an example of the

13. If product prices were stated in terms of tobacco leaves, then tobacco leaves would be functioning primarily as Which group is responsible for the policy decision of changing the money supply?

14. Cash held by a bank in its vault is a part of the bank’s Assume that the required reserve ratio is 20%. A business deposits a $50,000 check at Bank A; the check is drawn against Bank B. What happens to the reserves at Bank A and Bank B? ============================================== ECO 372 Apply Week 5 Fiscal and Monetary Policy Homework (100% Correct) (All Possible Question/Answers) FOR MORE CLASSES VISIT www.eco372edu.com The existence of lags in designing and implementing fiscal policy helps illustrate some of the limitations of fiscal policy aimed at easing the burdens of a recession.

15. Which of the following statements best describes a situation when fiscal policy is more appropriate? For each of the following scenarios, determine which time lag is most likely to result when designing and implementing fiscal policy. The separation of power demonstrated between the legislative and executive branches of government combined with strong partisanship attitude among our elected politicians.

16. The fact that it takes economists working for the National Bureau of Economic Research months to declare the dates of peaks and troughs. The time it takes to design and build new infrastructure after these projects have been passed by the legislature.

17. A key feature of all automatic stabilizers is that they: Which of the following is an example of built-in stability? As real GDP decreases, The intent of contractionary fiscal policy is to

18. Payments made by the government that do not require an exchange of economic activity in return are also known as The set of fiscal policies that would be most contractionary would be a(n) Using fiscal policy to stabilize the economy is difficult because

19. As the economy declines into recession, the collection of personal income tax revenues automatically falls. This phenomenon best illustrates how a progressive income-tax system If the U.S. Congress passes legislation to raise taxes to control demand- pull inflation, then this would be an example of a(n) One timing problem in using fiscal policy to counter a recession is the "recognition lag" that occurs between the

20. One timing problem in using fiscal policy to counter a recession is the "legislative lag" that occurs between the The time that elapses between the beginning of a recession or an inflationary episode and the identification of the macroeconomic problem is referred to as a(n) When the federal government changes purchases and/or taxes to stimulate the economy or rein in inflation, such policy is . Fiscal policy is enacted through changes in

21. . Fiscal policy is sometimes initiated on the advice of the Which of the following serves as an automatic stabilizer in the economy? If the government wishes to increase the level of real GDP, it might reduce

22. Due to automatic stabilizers, when the nation’s total income rises, government transfer payments If taxes and government expenses did not vary with income, then income would

23. Automatic stabilizers smooth fluctuations in the economy because they produce changes in the government's budget that Fiscal policy is sometimes initiated on the advice of the One timing problem in using fiscal policy to counter a recession is the "implementation lag" that occurs between the The lag between the time that the need for fiscal action is recognized and the time action is actually taken is referred to as the

24. When the federal government uses taxation and purchasing actions to stimulate the economy it is conducting The discount rate is the: If the Fed were to decrease the discount rate, banks will borrow: When the federal funds rate increases, banks make:

25. Which of the monetary policy tools can alter both the level of excess reserves and the money multiplier? Economic investment refers to _____. An increase in the money supply, all else held constant, usually _____ the discount rate is the interest _____

26. The interest rate at which the Federal Reserve Banks lend to commercial banks is called the _____. The purchase and sale of government securities by the Fed is called _____ The major purpose of the Federal Reserve buying government securities in open market operations is to _ financial markets pay close attention to changes in the federal funds rate because these changes _____.

27. If the Fed buys government securities from commercial banks in the open market _____. A newspaper headline reads: "Fed Cuts Federal Funds Rate for Fifth Time This Year." This headline indicates that the Federal Reserve is most likely trying to _____. The purpose of expansionary monetary policy is to increase _____. The interest rate that the Fed charges on loans made directly to banks is called _____.

28. Traditionally, the Fed often communicated its intentions to restrict or expand monetary policy by announcing a change in its target for the _____. The lending ability of commercial banks increases when the ____ f the Board of Governors of the Federal Reserve System increases the reserve requirement, this change will _____. If the federal funds rate _____.

29. The federal funds rate is the interest rate that _______ charge(s) _______. During the Christmas shopping season, the demand for money increases significantly. To offset the increase in money demand, the Fed must ______ the money supply, which will put ______ pressure on nominal interest rates. Which of the following statements is true? In an effort to stabilize the banking sector and keep banks lending, from October 2008 to September 2009, the Fed _____. Reserves borrowed at the federal funds rate are usually repaid ____

30. The Fed directly sets _____. When the Federal Reserve Banks decide to buy government bonds from banks and the public, the supply of reserves in the federal funds market The fundamental objective of monetary policy is to assist the economy in achieving a _____. Which of the following statements is true?

31. The graph below depicts an economy where an increase in aggregate demand has caused inflation. The economy's current level of real GDP (Y2) is above its long-run equilibrium. This is illustrated by the long-run aggregate supply curve (LRAS) and a price level (P2) above the equilibrium value of Pe. Which of the following is an example of an automatic stabilizer that would help this economy move toward full employment again?

32. The existence of lags in designing and implementing fiscal policy helps illustrate some of the limitations of fiscal policy aimed at easing the burdens of a recession. Which of the following statements best describes a situation when fiscal policy is more appropriate? ============================================== ECO 372 Assignment Week 1 Apply Output, Income, and Economic Growth Homework (100% Correct) (All Possible Question) FOR MORE CLASSES VISIT www.eco372edu.com

33. ECO 372 Week 1 Apply: Output, Income, and Economic Growth Homework – One Attempt Review the Week 1 Output, Income, and Economic Growth Quiz in preparation for this assignment. Complete the Week 1 Output, Income, and Economic Growth Assignment in McGraw-Hill Connect®. These are randomized questions. Note: You have only one attempt available to complete assignments. Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date. Which of the following scenarios would be included in GDP? Darius unclogs the drain in his sink using the plunger he owns. Sandra is a waitress at Morton’s Steakhouse. She receives a cash tip of $50 that she pockets and does not report. Pam buys a new 40-inch television at Walmart. Miguel won $100 in his office fantasy football league. Which of the following expenditures is an example of a consumer durable good? Marcus buys some new soccer cleats at the sporting goods store. Arti buys a new refrigerator from Sears. Latisha gets a manicure from the nail salon in the mall. Colin buys a large coffee and a donut from Dunkin’ Donuts. The equation for net investment is written as:

34. Net Investment = Nominal GDP – Gross Investment Net Investment = Gross Investment – Depreciation Net Investment = Consumption – Gross Investment Net Investment = Depreciation – Gross Investment Which of the following ly describes GDP using the income approach? GDP = Wages + Rents + Interest + Profits and Losses + National Income GDP = Consumption + Gross Investment + Net Exports + Government Purchases GDP = Wages + Rents + Interest + Profits and Losses GDP = National Income + Indirect Business Taxes + Depreciation + Net Foreign Factor Income The major difference between nominal GDP and real GDP is: nominal GDP measures the value of output with constant output levels, while real GDP measures output using current-year output levels. nominal GDP measures the value of output in constant prices, while real GDP measures output using current-year prices. nominal GDP measures the value of output with current-year output levels, while real GDP measures output using constant output levels. nominal GDP measures the value of output in current-year prices, while real GDP measures output using constant prices. The U.S. produces and sells millions of different products. To aggregate them together into a single measure of domestic output, the quantity of each good produced is weighted by its _____.

35. rev: 04_09_2018 Multiple Choice utility to consumers market price contribution to corporate profits cost of production A nation’s nominal gross domestic product (GDP) _____. rev: 04_09_2018 Multiple Choice is the dollar value of all final output produced within the borders of the nation during a specific period of time is the dollar value of all final output produced by its citizens, regardless of where they are living is always some amount less than C + I + G + NX can be found by summing C + I + S + NX Which of the following is not included in gross domestic private investment, as defined in national income accounts? rev: 04_09_2018 Multiple Choice Changes to business inventories The value of all new capital goods bought by business firms Domestic home construction undertaken by and for the private sector Government construction of new highways and dams GDP measured using current prices is called _____ deflated GDP

36. constant GDP real GDP nominal GDP Which of the following is a primary use for national income accounts? rev: 04_09_2018 Multiple Choice To analyze the environmental cost of economic growth To assess the economic efficiency of specific industries in the economy To determine whether there is a fair and equitable distribution of income in the economy To measure changes in the value of production and income in the economy Final goods and services refer to _____. rev: 04_09_2018 Multiple Choice goods and services that are unsold and therefore added to inventories goods and services purchased by ultimate users, rather than for resale or further processing

37. goods and services whose value has been adjusted for changes in the price level the excess of U.S. exports over U.S. imports Nominal GDP differs from real GDP because _____. rev: 04_09_2018 Multiple Choice nominal GDP is based on constant prices nominal GDP results from adjusting for changes in the price level real GDP results from adjusting for changes in the price level real GDP is based on current prices Which of the following is not an example of an intermediate good? rev: 04_09_2018 Multiple Choice an oven bought by a homeowner office supplies bought by an accounting firm gasoline bought by a trucking company flour bought by a bakery In the treatment of U.S. exports and imports, national income accountants _____. rev: 04_09_2018

38. Multiple Choice subtract exports but add imports in calculating GDP subtract both exports and imports in calculating GDP add both exports and imports in calculating GDP add exports but subtract imports in calculating GDP The value of corporate stocks and bonds traded in a given year is _____. rev: 04_09_2018 Multiple Choice included in the calculation of net private domestic investment excluded from the calculation of GDP because it does not represent new production included in the calculation of GDP because it is a component of gross investment included in the calculation of gross private domestic investment Suppose that real GDP per capita in the United States is $49,000. If the long-term growth rate of real GDP per capita is 1.6% per year, how many years will it take for real GDP per capita to reach $98,000? Instructions: Enter your answer as a whole number. years The table below shows real GDP per capita for the United States between the years 1950–2016.

39. Real GDP per Capita over Time Year Real GDP per Capita (dollars) 1950 $13,819 1975 24,601 2000 43,935 2016 52,172 Instructions: Round your answers to one decimal place. What is the growth rate in the standard of living from 1950 to 1975? What is the growth rate in the standard of living from 1975 to 2000? What is the growth rate in the standard of living from 2000 to 2016? Suppose that Italy can produce either goods or services with its resources, and that its PPF curve is shown on the graph as PPF1. Using the graph, for each of the following situations, determine whether the PPF curve shifts. Suppose that Italy increases its spending on education, which increases the amount of human capital in Italy. Italy’s PPF curve would A recession causes Italy’s unemployment rate to increase above the natural rate of unemployment. Italy’s PPF curve would

40. Italy experiences an influx of immigrants from surrounding countries, which causes the population of Italy to increase. Italy’s PPF curve would Which of the following is a measure of economic growth that is most useful for comparing changes in standards of living? rev: 05_30_2018 Multiple Choice increases in real GDP increases in real GDP per capita growth in nominal GDP decreases in the rate of unemployment The benefits of economic growth are _____, while the costs of economic growth are _____. rev: 05_30_2018 Multiple Choice increased output per person; the consumption sacrificed in exchange for capital formation increased output per person; less future consumption increased output per person; too small for concern more current consumption; less future consumption

41. Use the following production possibilities frontiers to answer the next question. Curve (a) is the current frontier for the economy. Focusing on curve (a), point N suggests that the economy currently produces rev: 05_30_2018 Multiple Choice more goods for the future than at point P. less goods for the present than at point P. less goods for the future than at point P. a combination of output that is less than its potential. The application of new technologies to the production process will increase rev: 05_30_2018 Multiple Choice labor productivity. the share of the population employed. the unemployment rate. the quantity of human capital. Real GDP per capita is found by rev: 05_30_2018 Multiple Choice

42. dividing real GDP by population. subtracting population from real GDP. dividing population by real GDP. adding real GDP and population. Human capital is rev: 05_30_2018 Multiple Choice the financial resources available to humans for investment. the talents, training, and education of workers. the factories and machinery used by humans in the production process. the factories and machinery made by workers. To increase future living standards by pursuing higher current rates of investment spending, an economy must rev: 05_30_2018 Multiple Choice reduce the current capital stock. allow higher rates of current consumption. reduce current rates of consumption spending. decrease the amount of future research and development spending.

43. Which of the following is a measure of economic growth that is most useful for measuring changes in the overall size of an economy? rev: 05_30_2018 Multiple Choice decreases in the rate of unemployment increases in real GDP increases in real GDP per capita growth in nominal GDP Human capital refers to the rev: 05_30_2018 Multiple Choice amount of financing available to start-up firms. tools and equipment available to workers. education, training, and skills of workers. number of workers available in the economy. Economic growth can best be portrayed as a(n) rev: 05_30_2018 Multiple Choic outward shift of the production possibilities frontier.

44. movement from a point inside to a point outside of the production possibilities frontier. inward shift of the production possibilities frontier. movement from a point near the vertical axis to a point near the horizontal axis on the production possibilities frontier. The cost of a higher living standard in the future is giving up rev: 05_30_2018 Multiple Choice current consumption. current investment. future consumption. future investment. The principle of diminishing returns to capital states that if the amount of labor and other inputs employed is held constant, then the greater the amount of capital in use the rev: 05_30_2018 Multiple Choice the less an additional unit of capital adds to production. less is produced. the more an additional unit of capital adds to production. less production is wasted.

45. ============================================== ECO 372 Assignment Week 1 Practice Output, Income, and Economic Growth Quiz (100% Correct) (All Possible Question) FOR MORE CLASSES VISIT www.eco372edu.com ECO 372 Week 1 Practice: Output, Income, and Economic Growth Quiz Complete the Week 1 Output, Income, and Economic Growth Quiz in McGraw-Hill Connect®by Day 5. These are randomized questions. Which of the following ly describes GDP using the income approach?GDP = Consumption + Gross Investment + Net Exports + Government PurchasesGDP = Wages + Rents + Interest + Profits and Losses GDP = National Income + Indirect Business Taxes + Depreciation + Net Foreign Factor Income GDP = Wages + Rents + Interest + Profits and Losses + National Income Which of the following statements ly explains exports versus net exports?

46. Exports are goods, services, or resources produced domestically and sold abroad, while net exports are equal to exports minus imports. Exports are goods, services, or resources produced domestically and sold abroad, while net exports are equal to imports minus exports. Exports are goods, services, or resources produced abroad and sold domestically, while net exports are equal to exports minus imports. Exports are goods, services, or resources produced abroad and sold domestically, while net exports are equal to imports minus exports. The major difference between nominal GDP and real GDP is: nominal GDP measures the value of output with current-year output levels, while real GDP measures output using constant output levels. nominal GDP measures the value of output with constant output levels, while real GDP measures output using current-year output levels. nominal GDP measures the value of output in current-year prices, while real GDP measures output using constant prices. nominal GDP measures the value of output in constant prices, while real GDP measures output using current-year prices. Determine whether each of the following examples would be included in Gross Domestic Product (GDP). When Judy went to the grocery store yesterday, she bought three pounds of potatoes. Judy’s purchase of potatoes

47. 1. Ford Motor Company buys four tires to put on a new Ford Mustang. The purchase of the tires 1. The U.S. Air Force purchases two new fighter jets from Boeing. The purchase of the two fighter jets 1. When Joey had his birthday last week, his grandmother sent him a $100 bill that he could spend. Joey’s birthday gift of $100 Henry and his girlfriend ate dinner at the new Thai restaurant that recently opened in his neighborhood. This expenditure would be included in: consumer durables. services. government purchases. consumer nondurables. The equation for net investment is written as: Net Investment = Nominal GDP – Gross Investment Net Investment = Gross Investment – Depreciation Net Investment = Depreciation – Gross Investment Net Investment = Consumption – Gross Investment Which of the following measures is most often used to compare the standards of living in different countries?

48. rev: 04_09_2018 Multiple Choice daily per capita calorie supply per capita income life expectancy at birth per capita energy consumption GDP tends to overstate economic well-being because it takes into account _____. rev: 04_09_2018 Multiple Choice expenditures undertaken topollution illegal activities of individuals and businesses nonmarket activities, such as the productive work of homemakers improvements in product quality over time One common measure of the “standard of living” in a nation is _____. rev: 04_09_2018 Multiple Choice real GDP per capita population size real GDP

49. the unemployment rate What are net exports? rev: 04_09_2018 Multiple Choice That portion of consumption and investment goods sent to other countries Exports minus imports Exports plus imports Imports minus exports The U.S. produces and sells millions of different products. To aggregate them together into a single measure of domestic output, the quantity of each good produced is weighted by its _____. rev: 04_09_2018 Multiple Choice cost of production contribution to corporate profits utility to consumers market price “Net foreign factor income” in the national income accounts refers to the difference between the _____. rev: 04_09_2018

50. Multiple Choice income Americans gain from supplying resources abroad and the income that foreigners earn by supplying resources in the U.S. income earned by Americans in the U.S. minus the income earned by foreigners in the U.S. value of investments that Americans made abroad and the value of investments made by foreigners in the U.S. value of products sold by Americans to other nations and the value of products bought by Americans from other nations. A nation’s nominal gross domestic product (GDP) _____. rev: 04_09_2018 Multiple Choice is the dollar value of all final output produced by its citizens, regardless of where they are living is always some amount less than C + I + G + NX can be found by summing C + I + S + NX is the dollar value of all final output produced within the borders of the nation during a specific period of time The value of corporate stocks and bonds traded in a given year is _____. rev: 04_09_2018 Multiple Choice