Macroeconomics: Economic Models and Theories

According to the Solow-Swan model, an increase in the savings rate will lead to which of the following long-run effects?

Which of the following fiscal policy actions is most likely to decrease aggregate demand in the short run?

According to Keynesian economics, what is the primary determinant of employment levels in the short run?

In an open economy, what is the likely effect of an increase in the domestic interest rate on the exchange rate, assuming other factors remain constant?

Suppose the interest rate in the U.S. is 5% and the interest rate in the Eurozone is 3%. According to the uncovered interest rate parity condition, what is the expected change in the exchange rate between the Euro and the U.S. dollar?

Which of the following is NOT a component of Gross Domestic Product (GDP) according to the expenditure approach?

What is the primary relationship illustrated by the IS curve?

Which fiscal policy action would be the most effective at fighting demand-pull inflation?

According to the Phillips Curve, a decrease in unemployment is most likely to be associated with which of the following?

In a closed economy, if government spending increases by $100 billion and the marginal propensity to consume is 0.8, what is the maximum possible increase in national income, assuming no crowding out?