Which of the following is a microeconomic concern? ( a) The rate of unemployment in the country ( b) How an individual consumer responds an economic recession. O c) The inflation rate the US faces. O d) How the Federal reserve conducts monetary policy during a recession. Question 2 (Mandatory) (2 points) ) Listen A rightward shift in the aggregate supply curve can be associated with a reduction in resource prices. True FalseQuestion 3 {Ma ndatory) [4 points) all The basic economic problem is O a] poverty. 0 bl scarcity. O C} inflation. O 5\" unemployment. Question 4 {Mandatory} [4 points) all The largest component of the expenditure approach to calculating GDP is O a] interest income to capital owners. 0 b) wages and salaries. O C} consumption spending. 0 5\" profits earned by entrepreneurs. Question 5 {Mandatory} [4 points] all In the Income-Expenditure model, the primary determinant of consumption is O a] expectations of inflation. O '3] taxes. 0 C} wealth. 0 d] disposable income. Question 6 (Mandatory) (4 points) Listen Figure 8-5 451 i F2 U.S. Price Level P Y2 U.S. National Income (Dollars) In Figure 8-5, the change in aggregate supply from AS2 to AS, could be the result of O a) an increase in net exports. O b) a reduction in net exports. O c) an increase in real wage rates. ( d) higher labor productivity.Question 7' {Mandatory} [2 points] all An increase in interest rates will cause an increase in investment spending. Question 8 {Mandatory} [4 points] all If the average price level in 2019 was 125 relative to the base vear in 2011, then 0 a] a dollar in 2019 bought just 80 percent of the goods and services that a dollar bought in 2011. O '3] average prices were 125 percent higher in 2019 than in 2011. O C} average prices were 80 percent higher in 2019 than in 2011. d] a dollar in 2019 bought 25 percent more goods and services than a dollar bought in 2011. Question 9 (Mandatory) (4 points) () Listen An upward-sloping aggregate supply curve indicates that O a) lower prices lead to increased production. ( b) higher prices lead to less consumption. O c) the amount of real GDP produced falls as prices increase. O d) higher prices lead to increased production. Question 10 (Mandatory) (4 points) () Listen Other things equal, an increase in aggregate demand will result in O a) an economic recession. O b) higher unemployment and a lower equilibrium price level. c) an economic expansion. O d) a decrease in equilibrium real GDP and an increase in the equilibrium level of prices.Question 11 { Ma ndatoryi [2 points) all Macroeconomics is concerned primarily with aggregate sectors of the economy, such as the consumer sector or the business sector. Question 12 {Mandatory} [2 points) all The aggregate demand curve depicts an inverse relationship between real GDP and the price of a particular good. Question 13 (Mandatory) (4 points) ) Listen If LCC deposits $1,000 into Rick's checkable deposit at his credit union, O a) M1 and M2 both decrease by $1,000. ( b) M1 increases by $1,000. O c) M1 doesn't change. ( d) M2 increases by $1,000. Question 14 (Mandatory) (4 points) ) Listen Inflation benefits people who O a) borrow at fixed interest rates. O b) lend at fixed interest rates. O c) save at fixed interest rates. O d) receive fixed incomes.Question 15 (Mandatory) (2 points) E Listen Wheat produced in the U.S. but sold in Japan would not add to U.S. GDP. True O False Question 16 (Mandatory) (4 points) Saved () Listen Debit entries in the U.S. balance of payments represent O a) activities that involve payments to the rest of the world. Ob) activities whereby foreign exchange is gained. O c) U.S. exports. O d) capital inflows.Question 1? {Mandatory} {4 points] all The official unemployment rate is O 33' the number of unemployed people divided by the size of the labor force. 0 b] the number of unemployed people divided by the size of the non- institutionalized population. the number of unemployed people divided by the number of employed c} people. 0 C\" the number of unemployed people divided by the total size of the population. Question 18 {Mandatory} {2 points] all If the aggregate supply curve is vertical. then shifts in aggregate demand will lead to changes in aggregate output. Question 19 {Mandatory} {4 points) an Which of the following statements concerning inflation is not true? 0 a] In most cases, hyperinflation eyentually makes a country's currency worthless. O b] The general price level in the United States has always had an upward trend. 0 C} Hyperinflation is an extremely high rate of inflation. O C\" If the price index is 300 in year 1 and 360 in year 2. the inflation rate is 20%. Question 20 {Mandatory} {2 points) an The natural rate of unemployment is zero percent. Question 21 (Mandatory) (4 points) Listen Which of the following is considered a liability by a bank? ( a) Bank loans b) Time deposits O c) Government securities O d) Reserves Question 22 (Mandatory) (4 points) () Listen If real GDP increased by 2% and nominal GDP increased by 4%, which of the following took place? O a) Output decreased and the price level increased. O b) Output decreased and the price level decreased. O c) Output increased and the price level decreased. O d) Output increased and the price level increased.Question 23 (Mandatory) (4 points) Listen Which of the following statements is true? O a) Disposable income minus consumption equals savings. O b) Consumption is always exactly equal to disposable income. O c) Disposable income plus savings equals consumption. O d) Savings equals consumption minus disposable income. Question 24 (Mandatory) (2 points) Listen The consumer price index (CPI) measures the cost, over time, of a market basket of goods purchased by a typical household. O True FalseQuestion 25 (Mandatory) (4 points) Listen The central bank of the United States consists of O a) twelve Federal Reserve district banks. O b) one Federal Reserve bank for each state. O c) seven state banks and one Federal Reserve bank for each major city. O d) one centralized Federal Reserve bank in New York. Question 26 (Mandatory) (2 points) () Listen The value of the U.S. dollar depends on the price of gold. O True FalseQuestion 27 (Mandatory) (2 points) E Listen The wealth effect, the interest rate effect, and the foreign purchases effect all imply an inverse relationship between aggregate output demanded and the price level. O True O False Question 28 (Mandatory) (4 points) ) Listen The aggregate demand curve O a) implies a positive relationship between inflation and unemployment. O b) has the same slope as the aggregate supply curve. O c) shows the various levels of expenditures that the economy will engage in at alternative price levels. O d) is identical to the consumption curve.Question 29 (Mandatory) (4 points) 1) Listen Which of the following is not part of the Federal Reserve System? ( a) Federal Reserve districts O b) Council of Economic Advisers c) Federal Open Market Committee O d) Board of Governors Question 30 (Mandatory) (2 points) E Listen One of the factors influencing aggregate demand is the aggregate supply level. O True FalseQuestion 31 (Mandatory) (4 points) Listen Suppose the marginal propensity to save (MPS) = 0.2. If investment spending rises by $170 billion, equilibrium income will O a) increase by $3,400 billion. b) increase by $850 billion. O c) increase by $170 billion. d) decline by $170 billion. Question 32 (Mandatory) (2 points) Listen The aggregate expenditure function measures total planned spending by households and firms. True FalseQuestion 33 (Mandatory) (4 points) Listen A relationship showing that income is directly related to consumption can be described by a curve that a) has a negative slope. O b) is vertical. O c) has a positive slope. O d) slopes downward.Question 34 (Mandatory) (4 points) Listen General trends in the incidence of unemployment across different demographic groups show which of the following groups to have the lowest unemployment rates in the country? ( a) College graduates ( b) Men O c) Women O d) Teenagers Question 35 (Mandatory) (4 points) ) Listen The difference between gross and net investment is known as ( a) gross domestic product. ( b) net exports. O c) capital consumption allowance (depreciation). O d) indirect business taxes.Question 36 (Mandatory) (4 points) Listen What is the immediate effect when Bank A lends $1,000 to a person? ( a) M1 increases by $1,000. O b) M1 remains unchanged. O c) Bank A's reserves increase by $1,000. O d) M1 decreases by $1,000. Question 37 (Mandatory) (4 points) ) Listen The price index for the current year is 180. This means that, on average, prices in the current year are O a) 80 percent higher than prices in the base year. ( b) $1.80 higher than prices in the base year. O c) 80 percent of prices in the base year. O d) 180 percent higher than prices in the base year.Question 38 (Mandatory) (4 points) ) Listen Which of the following will not shift the short-run aggregate supply curve? O a) A change in price expectations ( b) A change in labor productivity O c) A change in the price level ( d) A change in technology Question 39 (Mandatory) (4 points) ) Listen Consider the following statement: "If the government attempts to raise employment through increased aggregate demand, all it will end up doing will be to drive up the price level." The person who makes this statement assumes that ( a) the aggregate supply curve is a vertical line. O b) the aggregate supply curve is downward-sloping. O c) the aggregate supply curve is upward-sloping. O d) the aggregate demand curve is a horizontal line.Question 40 (Mandatory) (4 points) E () Listen Figure 7-1 Trend Real GDP Year 1 Year 2 Year 3 Year 4 Year 5 Time Refer to Figure 7-1. In year 2, O a) a peak has been reached. ( b) a recession is ending. O c) a trough has been reached. O d) the economy is entering an expansionary phase.Question 41 (Mandatory) (4 points) Listen If consumers become more pessimistic about their future economic well-being, we would expect ( a) the agregate demand (AD) curve to shift to the left. ( b) a movement to the right along the AD curve. ( c) a movement to the left along the AD curve. (O d) the AD curve to be unchanged, but the AS curve to shift to the right.Question 42 (Mandatory) (4 points) () Listen Year Price Index 2010 100 2017 120 2018 125 2019 130 The inflation rate for 2019 is about a) 5%. ( b) 130% O c) 4% O d) 4.2%.Question 43 (Mandatory) (4 points) () Listen Labor resources include ( a) skilled workers, but not unskilled workers. ( b) unskilled workers, but not skilled workers. O c) robots. O d) none of the above Question 44 (Mandatory) (4 points) Listen If the spending multipler equals 13, the marginal propensity to save must approximately equal O a) 12 O b) 13 O c) 0.92 O d) 0.08Question 45 (Mandatory) (4 points) () Listen The aggregate supply curve O a) relates total output in the economy to alternative price levels. (b) shows the various amounts of real output that the economy will produce of a particular good. O c) is irrelevant for determining macroeconomic equilibrium. O d) shifts with changes in consumer spending, investment, government spending, and net exports. Question 46 (Mandatory) (2 points) () Listen Any individual who is not working would be considered unemployed. O True FalseQuestion 47 (Mandatory) (4 points) ) Listen The kind of money that is not backed by any other good (such as gold) is called a) fake money. ( b) trusted money. O c) commodity money. O d) fiat money. Question 48 (Mandatory) (4 points) Listen Which of the following statements is not true? (a) The Federal Reserve Open Market Committee determines fiscal policy actions for Congress. ( b) The members of the Board of Governors of the Federal Reserve are appointed, not elected. ( c) The Federal Reserve System was designed to be independent of the executive branch of government. O d) The chairman of the Board of Governors serves a four-year term.Question 49 (Mandatory) (4 points) Listen bagels coffee haircuts P output P output P output 2010 $1.00 1000 $5.00 400 $10.00 80 2019 $1.50 1400 $8.00 600 $12.00 80 2020 $1.60 1400 $9.00 700 $12.00 80 Assume that in the country of Nelsonia three goods are produced: bagels, coffee, and haircuts. The typical consumer in Nelsonia buys 20 bagels, 30 cups of coffee, and 2 haircuts a month. The base year is 2010. The Consumer Price Index for 2020 is ( a) $5,700 b) 154.7 O c) 100 O d) 171.6Question 50 (Mandatory) (4 points) Listen bagels coffee haircuts P output P output P output 2010 $1.00 1000 $5.00 400 $10.00 80 2019 $1.50 1400 $8.00 600 $12.00 80 2020 $1.60 1400 $9.00 700 $12.00 80 Assume that in the country of Nelsonia three goods are produced: bagels, coffee, and haircuts. The table shows output and prices in different years. Assume the base year is 2010. Nominal GDP for 2019 is O a) $9,500 b) $21.50 O c) $5,700 O d) $7,860Question 51 (Mandatory) (4 points) Listen Year Price Index 2010 100 2017 120 2018 125 2019 130 (BONUS) Based on the data above, which of the following is true? a) The inflation rate in 2019 was 5%. O b) The inflation rate in 2019 was the same as the rate in 2018. O c) The inflation rate in 2017 was 20%. O d) All of the above are true. O e) None of the above are true.Question 52 {Mandatory} {4 points] all This type of unemployment arises as one of the effects of a recession. 0 a] Seasonal unemployment O b) Frictional unemployment O '5) Structural unemployment O 5\" Cyclical unemployment Question 53 (Mandatory) (4 points) Listen bagels coffee haircuts P output P output P output 2010 $1.00 1000 $5.00 400 $10.00 80 2019 $1.50 1400 $8.00 600 $12.00 80 2020 $1.60 1400 $9.00 700 $12.00 80 Assume that in the country of Nelsonia three goods are produced: bagels, coffee, and haircuts. The typical consumer in Nelsonia buys 20 bagels, 30 cups of coffee, and 2 haircuts a month. The base year is 2010. The Consumer Price Index for 2010 is O a) 100 O b) 190.0 O c) $5,700 O d) 154.7Question 54 {Mandatory} {4 points} all bagels coffee hair: uts E output E output E output 2010 51.00 1000 55.00 400 510.00 30 20111-3I 51.50 1400 53.00 500 512.00 30 2020 51.50 1400 59.00 1'00 512.00 30 Assume that in the country of Nelsonia three goods are produced: bagels, coffee. and haircuts. The table shows output and prices in different years. Assume the base year is 2010. Real GDP for 2019 is O a} $2,100 0 b1 $5300 0 c} $5,200 0 d} $22.60 Question 55 (Mandatory) (4 points) 1 Listen Which of the following are not included in M1? a) Credit union draft accounts (b) Currency in circulation O c) Certificates of deposit O d) all of the above are included in M1Question 56 (Mandatory) (4 points) Listen A L + $3000 + $3000 loans checkable deposits Which transaction could change the bank's balance sheet as indicated? ( a) Curtis borrows $3,000 from the bank to buy a moped ( b) Alex repays to the bank a $3,000 loan he had used to buy a moped O c) Gabe writes a $3,000 check to buy a moped O d) all of the aboveQuestion 57 (Mandatory) (4 points) () Listen An increase in labor productivity prices results in ( a) a rightward shift of the aggregate supply curve. ( b) a rightward shift of the aggregate demand curve. O c) a leftward shift of the aggregate demand curve. O d) a upward shift of the aggregate supply curve. Question 58 (Mandatory) (2 points) () Listen The circular flow diagram shows the different sectors in the economy are independent. O True O False