1.if the CPI this period is 165.7 and last period was 161.9, then the inflation rate is

Select one:

6.4%

2.3%

1.8%

4.2%

2.The investment component of GDP includes

Select one:

Fixed investment but not changes in inventories

Private and public fixed investment and changes in inventories

Public fixed investment and changes in inventories

Private fixed investment and changes in inventories

3.If actual real GDP is $23 trillion and potential GDP is $26 trillion, then the output gap is

Select one:

$3 trillion and it is negative

$23 trillion and it is positive

$23 trillion and it is negative

$3 trillion and it is positive

Clear my choice

4.The definition of gross domestic product (GDP) does not include which of the following?

Select one:

Goods and services priced in a market

Final goods and services

Intermediate goods and services

Domestically produced goods and services

5.If there is an increase in wages, then

Select one:

SAS will shift to the left, but LAS will not move

Both SAS and LAS will shift to the left

Both SAS and LAS will shift to the right

SAS will shift to the right, but LAS will not move

6.An increase in taxation will shift the AD curve to the

Select one:

Left because consumption will fall

Right because consumption will rise

Right because government revenue will decrease

Left because government revenue will increase

7.A technological improvement will shift

Select one:

The SAS and LAS curves to the right, but not PPF

The LAS and PPF curves to the right, but not SAS

The PPF curve to the right, but not SAS and LAS

The SAS, LAS and PPF curves to the right

An inflationary gap can be removed when

Select one:

Wages fall shifting the SAS curve to the left

Prices in the economy decrease

Wages rise shifting the SAS curve to the left

LAS shits to the left