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Introductıon to Economıcs II (ENG)

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  1. 1

    I. Economic units would like to hold an amount of money for the purposes of transaction, precaution and speculation.

    II. The factors determining the amount of money that economic units would like to hold are nominal income and interest rate.

    III. While nominal income is indirectly related with money demand, interest rate affects the demand for money directly.

    What can be said to be true about Keynesian economists explanations of the relationship
    between the quantity of money and economic activities?

  2. 2

    What does aggregate supply curve show?

  3. 3

    Assume that the aggregate supply curve is constant, the aggregate demand curve shifted to the right for any reason. What will happen to general price and income level in economy?

  4. 4

    I. Decrease in input prices

    II. Higher wage level

    III. More workforce

    Which of the reasons given above will shift the AS curve to the right?

  5. 5

    I.  The most important task of a central bank is to control monetary system of the country and to
    ensure it works in stability in order to achieve the national objectives. 

    II.  Central bank, as a financial institution, performs banking activities for the government by collecting, holding, transferring the government’s funds and making payments with them. 

    III. The term being banker for banking system means that the central bank serves other banks with products which is completely different to the banking system provides their clients. 

    What can be said to be true about the Central Bank’s functions?

  6. 6

    General equilibrium is determined by the implementation which of the two following economic policies?

    I. Expenditure-changing policies,

    II. expenditure-switching policies,

    III. expansionary expenditure policies,

    IV. Contractionary expenditure policies,

  7. 7

    How the equilibrium price level in an economy is determined?

  8. 8

    I.   An increase in saving rate (s) causes capital per worker to fall. 
    II.  An increase in productivity causes long-run output per worker to rise. 
    III. An increase in the rate of population growth causes consumption per worker to fall. 

    Which of the statements above is true? 

  9. 9

    What is the total amount of goods and services demanded at various price levels in an economy?

  10. 10

    Which of the following causes cost-push inflation?

  11. 11

    What is aggragate demand?

  12. 12

    Which of the following is one of the expenditure switching policies?

  13. 13

    When was the first metal money used in history?

  14. 14

    According to Classical economists, ................. is the key variable to provide saving-investment equality.

  15. 15

    Which of the following is not a component of income GDP?

  16. 16

    " Negative saving happens when.........."

    Which of the following most appropriately completes the sentence above?

  17. 17

    Which of the following statement is correct about the monetary policy?

  18. 18

    Y

    C

    I

    G

    NX

    1000

    250

     300

     200

     250

    2000

    500

     300

     200

     0

    3000

    750

     300

     200

     - 250

    According to data given at the table above, what is the value of the marginal propensity to consume (MPC)?

  19. 19

    What is the positive linear relationship between income and consumption expenditures called?

  20. 20

    Which of the following is the fiscal policy that aims to decrease aggregate expenditures by reducing government spending and/or increasing taxes?

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