Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

provide answers.. its a complete question 21. (Scenario: Aggregate Consumption Equation) If disposable income is $500, aggregate consumption is: A) $0. B) $200. C) $400.

provide answers.. its a complete question

21. (Scenario: Aggregate Consumption Equation) If disposable income is $500, aggregate consumption is: A) $0. B) $200. C) $400. D) $600. 22. (Scenario: Aggregate Consumption Equation) If disposable income is $500, autonomous consumption is: A) $0. B) $200. C) $400. D) $600. 23. During the four years between late 2009 and late 2013, the unemployment rate in the US fell from 10.0 to 7.0 percent, despite the fact that real GDP only grew by 2 percent per year during that 4 year period. What were the reasons cited in lecture for this paradox? A) falling labor-force participation rate, slower productivity growth B) rising labor-force participation rate, slower productivity growth C) falling labor-force participation rate, faster productivity growth D) rising labor-force participation rate, faster productivity growth 24. When an economy's overall production grows faster than its population, it is referred to as: A) long-run growth per capita. B) an increase in nominal GDP. C) deflation. D) the paradox of thrift. 25. Deviations from the natural rate of unemployment are known as: A) frictional unemployment. B) structural unemployment. C) random unemployment. D) cyclical unemployment. 26. Anticipated inflation affects: A) borrowers only. B) lenders only. C) all aspects of the economy. D) only business firms involved in investment spending. 27. A fact reported in a course packet reading suggested that 90 percent of new mortgages go to borrowers with high credit scores. The lecture interpreted this as suggesting A) A low impact of interest rates on consumption B) A low impact of interest rates on investment C) A decline in the wealth effect on consumption D) A decline in the wealth effect on investment 28. When countries replaced gold and silver coins with paper money exchangeable for certain amounts of precious metals, the monetary system evolved from: A) using commodity money to using fiat money. B) using commodity-backed money to using fiat money. C) using commodity money to using commodity-backed money. D) using fiat money to using commodity-backed money

29. (Scenario: Real GDP) The growth rate of nominal GDP from year 1 to year 2 is (use the ln formula): A) 10%. B) 7.8%. C) 18%. D) 8.8%. 30. (Scenario: Real GDP) Using year 1 as the base year, real GDP in year 2 is: A) $900. B) $970. C) $1,000. D) $1,077.50. 31. (Scenario: Real GDP) The value of nominal GDP in years 1 and 2 respectively is: A) $900; $1,077.50. B) $900; $990. C) $180,000; $257,400. D) $1,000; $1,005. 32. (Scenario: Real GDP) Using year 1 as the base year, the growth rate of real GDP from year 1 to Year 2 is (use the ln formula): A) 10%. B) 7.5%. C) 19.7%. D) 8.8%. 33. Quality of life indicators supplement international comparisons of real GDP per capita. For France and Germany real GDP per capita is about 72% of the US level. In quality of life indicators France and Germany rate _________________ than 72% of the US level because of ______________ A) lower; higher inequality and lower life expectancy B) higher; higher inequality and higher life expectancy C) higher; lower inequality and higher life expectancy D) lower; lower inequality and lower life expectancy 34. The money supply curve is: A) downward sloping. B) vertical. C) upward rising. D) horizontal.

35. According to the wealth effect, when prices decrease, the purchasing power of assets: A) decreases and consumption decreases. B) increases and consumption decreases. C) decreases and consumption increases. D) increases and consumption increases. 36. Changes in aggregate demand can be caused by changes in: A) wages. B) business costs. C) raw materials costs. D) government spending. 37. Which of the following do economists view as investment spending? A) stocks B) bonds C) spending on physical capital D) mutual fund investing 38. The term "consumer deleveraging" refers to A) households adding debts in order to make consumption purchases B) households paying off debts and reducing their consumption purchases C) the Federal Reserve selling mortgage-backed securities in 2010-2013 D) the Federal Reserve buying mortgage-backed securities in 2010-2013 39. Suppose that the economy is in long-run macroeconomic equilibrium and aggregate demand increases. As the economy moves to short-run macroeconomic equilibrium, there is: A) a recessionary gap with high inflation. B) a recessionary gap with low inflation. C) an inflationary gap with high unemployment. D) an inflationary gap with low unemployment. 40. Which of the following does NOT cause the money demand curve to shift? A) a change in the interest rate B) a change in the price level C) a change in banking technology D) a change in real GDP

41. The invention of ATMs reduced the: A) menu costs of inflation. B) shoe-leather costs of inflation. C) unit-of-account costs of inflation. D) seignorage. 42. Which of the following assets is the MOST liquid? A) a $50 bill B) a $50 Amazon.com gift certificate C) 100 shares of Microsoft stock D) an economics textbook 43. Enchante Inc., a designer clothing company, buys $400 worth of silk from a silk trader and $30 worth of accessories from AccessoriesRuS to produce each dress. If the value added by Enchante is equal to $200, then according to the value-added approach, the price of the designer dress should be: A) $630. B) $230. C) $200. D) $830. 44. People forgo interest and hold money: A) because they are required to. B) to reduce their transactions costs. C) because there are no substitutes for money. D) because banks are too risky

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Dynamic Business Law The Essentials

Authors: Nancy Kubasek

1st Edition

0073377686, 9780073377681

More Books

Students also viewed these Economics questions

Question

What are the computer ethical issues regarding security?

Answered: 1 week ago

Question

Explain the principles of object - oriented design patterns.

Answered: 1 week ago

Question

Technology

Answered: 1 week ago

Question

Population

Answered: 1 week ago