Question
Could someone help with the following 6 questions? 1.When the market basket is tracked over time: a. the goods within the basket reflect the typical
Could someone help with the following 6 questions?
1.When the market basket is tracked over time:
a. the goods within the basket reflect the typical consumer each year, but prices are held constant, so it captures if we are consuming more or less as an economy.
b. the goods within the basket remain the same, so only changing prices are captured.
c. the goods within the basket reflect the typical consumer each year, so it captures how consumers are affected each year.
d. None of these statements is true.
2.When the economy is experiencing a negative output gap:
a. there is lots of inflationary pressure due to high demand.
b. some people and some capital are unemployed.
c. the economy may be in an expansion.
d. All of these statements are true.
3.What does the existence of labourunions mean for the labourmarket and for unemployment?
a. Wage rates could rise above equilibrium level.
b. Wage rates could fall above equilibrium level.
c. Unemployment could reach zero.
d. Unemployment could grow to unsustainable levels.
4.Wide acceptance of money without intrinsic value comes largely from the fact that:
a. it is hard to counterfeit.
b. it has a stable value.
c. it is convenient to use.
d. None of these is true.
5.Which of the following macroeconomic variables would be drawn accurately as perfectly inelastic?
a. Aggregate demand
b. Long-run aggregate supply
c. Short-run aggregate supply
d. None of these should be drawn as perfectly inelastic.
6.Higher interest rates motivate:
a. firms to invest less in new factories and working capital.
b. individuals to spend more on consumption goods.
c. firms to invest more in new factories and working capital.
d. individuals to spend more on capital goods.
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