1. According to the calculations of Angus Maddison, recall that the annual economic growth for GDP per capita for the years 2000 to 2016AD was 2.7%. What can we conclude from this number?

Group of answer choices

Living standards were not changing from century to century

At the rate of growth during that time, it would take about 26 years for income per person to double

There is a decrease in income for this period

The inflation rate in 2016 for most countries was lower than in 2000

2.Suppose for the country of Joshua-land, the annual inflation rate is 7%, the population growth is 5% per year while GDP increases by 2% per year. How long would it take for the country to double its GDP?

Group of answer choices

7 years

14 years

35 years

Never

3. For the previous question, how long would it take Joshua-land to double its GDP per capita?

Group of answer choices

7 years

14 years

35 years

Never

4. For Joshua-land, how long would it take for prices to double?

Group of answer choices

7 years

10 years

35 years

Not enough information

5. Which of the following was NOT an argument presented in this class about economic growth?

Group of answer choices

Economic growth is not desirable

Economic growth is desirable

Economic growth is not only desirable but also necessary

Economic growth is necessary BUT is not desirable

6. What is the definition of investment?

Group of answer choices

Spending by households

Spending by firms

Spending by the government

None of the above

7. According to the lecture slides, which of the following is NOT associated with a higher unemployment rate?

Group of answer choices

More suicides

More homicides

More people in prison

All of the above are associated with higher levels of unemployment

8. Suppose we have the following information for the country of "Arevalo-opolis":

Unemployed = 14 million

Employed = 186 million

We have the following table for the unemployment rates (U rates) that correspond to the different amounts of real GDP:

Real GDP Total U Rate Structural U Rate Frictional U Rate

$18 trillion 10% 3% 1.5%

$20 trillion 5% 3% 2%

What is the GDP lost when the number of unemployed is 14 million?

Group of answer choices

$0.4 trillion

$0.8 trillion

$1.6 trillion

Not enough information

9. In the United States, a large group of people known as the baby boomers are retiring: about 6,000 per day (according to the Pew Research Center).

What is the likely effect of this mass retirement on our country's Labor Force Participation rate?

Group of answer choices

Increase

Decrease

Unchanged

Unclear

10. If a country's money supply is $45,000, the price level is $22.50 and the output is 30,000. According to the quantity theory of money, what can we conclude about this country?

Group of answer choices

The velocity of money in this country is 10

Money is changing hands about 15 times every year

The unemployment rate is 15%

Not enough information

11. What happens if there is unexpected inflation?

Group of answer choices

Nothing

Borrowers tend to be better off

Lenders tend to be better off

The demand for money will decrease

12. In the world, how many countries have trade protection?

Group of answer choices

None

Ten

One hundred (around half of the world's countries)

All of the world's countries

13. Which of the following statements about international trade is FALSE?

Group of answer choices

It is controversial

It is generally beneficial

It is prevalent

All of the above are true

14. According to the AD-AS model, what would be the long run effect of the LRAS curve shifting left?

Group of answer choices

Output falls and the price level falls

Output rises and the price level rises

Output falls and the price level rises

Output is unchanged and the price level rises

15 Suppose a country's consumption level drops. According to the AD-AS model, what happens to the economy in the short run?

Group of answer choices

Output rises and the price level falls

Output falls and the price level falls

Output falls and the price level is unchanged

Output rises and the price level rises

16. The Federal Reserve decides to double the country's money supply. According to the AD-AS model, what is the effect on the economy in the long run (relative to the initial equilibrium)?

Group of answer choices

The real interest rate increases

Output rises

Unemployment rises

Purchasing power of money decreases

17. Consider the famous businessman and wealthiest individual in the early 20th century John D. Rockefeller. His wealth peaked in 1913 at $1 billion (in 1913 dollars). In the early 21st century, the wealthiest individual was Bill Gates. His wealth peaked at $43 billion in 2003 (in 2003 dollars). If the CPI in 1913 was 9.9 and the CPI in 2003 was 184, how does Rockefeller's wealth compare with Gates' in terms of purchasing power?

Group of answer choices

Rockefeller's wealth is less than half of Gates'

Rockefeller's wealth is about 80% the size of Gates'

Rockefeller's wealth is the same as Gates'

Rockefeller's wealth is about ten times the size of Gates'