In the year 2008, the financial crisis was targeted towards a. housing market. b. bond market. c. stock market. d. foreign exchange market. Question2 Question text Which of the following does "standard of living" usually relate to? a. the rate of unemployment. b. output per capita. c. wealth per capita. d. all of these Question3 Question text Which of the following best represents inflation a. a recession. b. an increase in output. c. an increase in the unemployment rate. d. an increase in the aggregate price level. Question4 Question text Complete the following: GDP is the value of all ________ produced in a given period. a. Intermediate goods and services produced by the private sector only b. final goods and services c. final and intermediate goods and services, plus raw materials d. all of these e. none of these Question5 Question text Which of the following represent real GDP? a. GDP in base year dollars b. GDP in current dollars c. GDP in terms of goods d. GDP in constant dollars Question 6 Question text In the short run, changes in GDP are largely caused by a. demand factors. b. supply factors. c. technology. d. capital accumulation. e. all of these Question7 Question text The added value of a company is equal to (Value Added Approach) a. its revenue minus all of its costs. b. its revenue minus its cost of intermediate goods. c. its revenue minus its wages and profit. d. its revenue minus its wages. Question8 Question text In a given year, suppose a company spends $100 million on intermediate goods and $200 million on wages, with no other expenses. Also assume that its total sales are $800 million. The value added by this company equals a. $300 million. b. $200 million. c. $500 million. d. $700 million. Question9 Question text Deflation generally occurs when which of the following occurs? a. the consumer price index decreases b. the rate of inflation falls, for example, from 4% to 2% c. nominal GDP does not change d. the consumer price index is greater than the GDP deflator Question10 Question text When measuring GDP using the income approach, the biggest percentage of GDP is usually made up of: a. labor income. b. indirect taxes. c. interest income. d. profits. Question11 Question text Assume the following is a representation of the consumption equation: C=360 +.8YD. For the economy described above, the multiplier is equal to a. 25. b. 2. c. 4. d. 75. Question12 Question text In the short run, which of the following will not increase equilibrium output? a. increases in demand for investment b. increases in consumer spending c. increases in R&D d. increases in government spending Question13 Question text Component G doesn't include which of the following?? a. social security payments b. interest payments on the government debt c. government purchases d. nonresidential investment Question14 Question text Households' increased desire to save will result in a. a reduction in output. b. an increase in output. c. no change in investment and no change in output. d. a reduction in investment. . , Question 15 Which of the following will result in a decrease in equilibrium output? a. an increase in the marginal propensity to save b. an increase in taxes c. a reduction in the marginal propensity to consume d. all of the above Question16 Which of the following does not lead to an increase in the amount of money one wishes to hold? a. an increase in the interest rate increase b. a reduction in the interest rate increase c. an increase in income d. none of these Question17 Which of the following is a bank's as well as a central bank's asset?? a. notes and coins b. deposits c. bonds d. all of these Question18 Which of the following is not included as a component of the M1 definition of money? a. bonds b. checkable deposits c. coins and bills held by the nonbank public d. all of these Question19 Which of the following variables will rise if the money supply is increased? a. output and investment b. investment and consumption c. consumption, output and investment d. all of these Question20 Assume that customer confidence has increased. Which of the following is the entire list of variables that must rise as a result of this increase in consumer confidence?? a. consumption and investment b. consumption, output and the interest rate c. consumption d. consumption, investment and output