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1) The Golden Rule level of capital accumulation is defined as the capital stock level that achieve a steady state with the: a

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1) The Golden Rule level of capital accumulation is defined as the capital stock level that achieve a steady state with the:

a. highest rate of savings.

b. highest level of consumption.

c. highest level of income.

d. highest level of depreciation.

2. The government announces a stimulus package following the economy recession. It is expected that

a. LM curve shifts to left.

b. IS curve shifts to right.

c. IS curve shifts to left.

d. LM curve shifts to right.

3. Based on IS-LM model, when an economy that adopting floating exchange rate decides to impose import tariff to reduce trade deficit,

a. currency appreciates and trade deficit remained.

b. currency depreciates and trade deficit reduced.

c. currency appreciates and trade deficit reduced.

d. currency depreciates and trade deficit remained.

4. Higher job separation rate led to

a. lower unemployment rate.

b. lower job findings rate.

c. higher labor force participation rate.

d. higher unemployment rate.

5. The IS curve is _ sloping as _ interest rate led to _ investment and income.

a. downward; higher; higher

b. upward; higher; higher

c. upward; higher; lower

d. downward; higher; lower

6. The central bank decides to implement contractionary monetary policy following the high inflation in economy, it is expected that

a. LM curve shifts to right.

b. LM curve shifts to left.

c. IS curve shifts to left.

d. IS curve shifts to right.

7.

Which of the following are the example of export?

a. America spending on necessity goods.

b. A foreigner purchases of local manufactured goods.

c. A local firm spending on intermediate goods.

d. Local government spending on equipment.

8. Capital, according to proponents of the Y=AK model, is defined as

a. being inversely related to technological progress.

b. including knowledge.

c. none of the answers is correct.

d. consisting solely of the stock of plants and equipment.

(i don't need details)