Sophia Macro Unit 4 Milestone 4 Questions and Answers with Verified Solutions

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UNIT 4 — MILESTONE 4 Score 20/21 You passed this Milestone 20 questions were answered correctly. 1 question was answered incorrectly. 1 Determine which statement below regarding international ... trade is FALSE. If the dollar is weak, people in other countries will purchase more U.S. products. A recession in one country can have a negative effect on AD in another country. Trade surplus occurs when exports exceed imports. An increase in imports will cause a rightward shift in AD. CONCEPT International Trade and Aggregate Demand 2 Which statement below regarding sustainable economic growth is FALSE? A recession is a sustainable level of production. In a recession, public policy could help an economy return to full employment. 12/16/2020 Sophia :: Welcome https://snhu.sophia.org/spcc/macroeconomics-2/milestone_take_feedbacks/7155276 2/11 Producing or consuming more does not always equate to long term economic growth. When equilibrium is to the right of the LRAS, that is a sustainable level of production. CONCEPT Sustainable Economic Growth 3 Which of the following would be true of policies taken during times of BOTH high and low unemployment? The multiplier effect will magnify the influence of policies. Cutting taxes will cause an increase in GDP. Increasing government spending will stimulate the economy. Reducing the money supply will reduce inflation. CONCEPT Monetary and Fiscal Policy 4 Which statement below describes the effect of expansionary policy on the economy? It decreases the money supply. AD shifts to the left. It decreases consumer willingness to purchase. If AD increases past full employment, prices will rise and return us to equilibrium. 12/16/2020 Sophia :: Welcome https://snhu.sophia.org/spcc/macroeconomics-2/milestone_take_feedbacks/7155276 3/11 CONCEPT Monetary and Fiscal Policy 5 The record of all monetary transactions that flow across a country's borders is known as which of the following? Balance of payment Current account Capital account National income accounting CONCEPT Role of International Trade 6 GDP would be a poor indication of how well a country is doing economically for which of the scenarios below? For a country that has little or no offshore production For a country that has offshore production that is offset by onshore production by foreign nationals For a country that has an equal amount of onshore and offshore production For a country that is producing significantly in other nations, so there is repatriation of profits outside its borders. CONCEPT International Comparisons 7 12/16/2020 Sophia :: Welcome https://snhu.sophia.org/spcc/macroeconomics-2/milestone_take_feedbacks/7155276 4/11 Which statement below regarding economic indicators is true? Economic indicators are inherently macroeconomic. Trends, patterns or situations that assist in forecasting the economy are considered lagging indicators. Economic indicators provide a view of the economy over an extended period of time. It is common practice to only look at one indicator when analyzing the macroeconomy. CONCEPT Understanding Indicators 8 Which of the following is one of the problems with using fiscal policy to reduce the severity of business cycles? Policies that are implemented could interfere with business investments of capital. It should be based on rules that allow the money supply to grow at a consistent rate. It is often implemented too late to be effective. It takes too long for consumers to respond to fiscal policy. CONCEPT Pros and Cons of Monetary and Fiscal Policy 9 Select the statement below that is FALSE regarding corporate social responsibility. Producing in ways that are sustainable would be an example of corporate social responsibility [Show More]

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