5 - Debtors and flexible income receivers are hurt by unanticipated inflation.

Select one:

True

False

7 - GDP measures the dollar value of all income received, as well as all goods and services produced within the nation in one year.

Select one:

True

False

8 - Of all the following transactions, which are NOT included in GDP?Choose all that apply.

a.

Your uncle's VA disability check

b.

Joe bought a new house built this year

c.

The government purchases 1000 new Chevy Suburbans for the FBI

d.

A firm purchases 1000 intermediate goods to be used in production

e.

Your recent trip to the doctor's office for your annual check-up

f.

Chipotle bought a new store

g.

Your purchase of a used textbook for a college class

h.

11 - the economy is in an inflationary gap, what kind of contractionary fiscal policy can the government use to bring the economy back to macroeconomic equilibrium?

a.

Increase taxes or Decrease Government Spending

b.

Increase government spending only

c.

Increase taxes only

d.

Decrease taxes or increase government spending

24 - Apple produces iPhones and the market equilibrium is where the supply curve meets the demand curve.If a technological advancement allows Apple to produce double the amount of phones for the same production cost, what will happen to the supply curve?After this supply curve shift, what happens to the new equilibrium price and quantity?

a.

Curve shifts to the left (decreases), price increases and quantity decreases

b.

Curve shifts to the right (increases), price decrease, quantity increases

c.

Curve shifts to the left (decreases), price decreases, quantity increases

d.

Curve shifts to the right (increases), price increases, quantity increases

Jon's purchase of 500 shares of Google stock