If Keynes’ law applies during economic contractions and Say’s law applies during economic expansion, how will the three goals of macroeconomics be affected?

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If the price level of what firms produce is rising across an economy, but the costs of production are constant, then:

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Referring to the above diagram, which of the following is a true statement?

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The graph above refers to a significant increase in individual income taxes, taking them to their highest level in 50 years. Which of the following is likely to result?

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According to macroeconomic theory, evidence that high unemployment may be accompanied by low inflation, and low unemployment may be accompanied by high inflation is supported by the:

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Referring to the diagram, which of the following is a true statement?

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According to the quantity theory, if constant growth in the money supply is combined with fluctuating velocity, which of the following is most likely to result?

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Which of the following events would cause interest rates to increase?

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If the economy is at equilibrium as shown in the diagram above, then an expansionary monetary policy will:

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1. The diagram above refers to a private closed economy.  In this instance, the equilibrium GDP is:

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 The government of Talonia has decided to stimulate its economy by increasing is spending during the upcoming fiscal year. The government’s economic advisors have determined that for each 100 in stimulus spending received, 24% will be repaid to the government for taxes, 18% of after-tax income will be saved, 22% will be spent on imports, and the remaining balance will be spent on domestically produced goods and services. Determine what fraction of expenditures is recycled and calculate the value of Talonia’s multiplier.

 Stealth Bank is holding $4 million in reserves, $9 million in government bonds and $9.6 million in low risk mortgage loans. Out of the $20 million in customers’ deposits, Stealth holds $13.1 million in the form of certificates of deposit. Describe the formula for determining Stealth Bank’s net worth and, using the figures above, determine the Bank’s net worth. Identify the criteria for classifying a bank as healthy or unhealthy and determine which applies to Stealth Bank in these circumstances.