Chapter 12 QUIZ 1. Read these statements and identify which are true or false: A. Tax effect on consumption of goods and services affects demand B. Natural disasters affect demand C. Russia vs Ukraine war had a major impact in the macroenvironment 2. Match items from both columns A. MACRO ANALYSIS Rate of inflation or the cost of living increased 17% and it is projected to hit 20% by the end of the year. B. MONETARY POLICY The main instrument, that of fiscal transfers, refer mainly to further upward revisions to the growth rate of public pensions, which are mostly indexed to inflation or economywide wages. C. SUPPLY SIDE POLICIES On september 30th 2022, EU countries established an emergency regulation to address high energy prices and help people and businesses that are most affected by the energy crisis. D. BUDGET OR FISCAL POLICY Russia vs Ukraine war 3. Order the factors with Monetary Policy, Supply- Side policies, and/or Macro Analysis - “The 24th of February 2022, attacks from Russia in major Ukrainian cities were reported across the world. Affecting the global economy to an outstanding level” - After the Russian attack, the Ukrainian government increased their spending, pushing their budget deficit to 27%. - Emergency measures: Reducing electricity use Capping revenues of electricity producers Securing a solidarity contribution from fossil fuels businesses. 4. Identify if the statements are true or false: A. The conflict in Ukraine has had a direct impact on the world's economy, affecting energy prices, the supply and demand for commodities, and a global fall in the purchasing power of currencies. The war has sparked a ruinous domino effect that is exponentially wounding the global market’s environment. B. Measure the exposure control to specific industries and key economic risk C. The Covid-19 crisis had nothing to do with war 5. Match the items from both columns: a. Monetary Policy tax and spending b. Fiscal Policy foreign, EU, national, local c. Supply side Policy regulation, concurrence, productivity d. Levels of government rates, money supply and quantitative policies
