X TX

D Question 1 The National Income and Product Accounts identity states: D 10,202 12,284 D D D D D D D D D O O O O Production Expenditure Income. Expenditure Production Income. Production Expenditure + Income. Expenditure Production + Income. Production Expenditure Income. 1 pts 1 pts Question 2 Refer to the following table when answering the following questions. Table 2.1: U.S. 2010 and 201 5 Expenditures ($ billions) Personal consumption expenditures Goods Services Gross private domestic investment Fixed investment Nonresidential Residential Change in private inventories Net exports of goods and services Exports Imports Government consumption Federal State and local 2010 3,363 6,839 01 2,039 1 ,658 381 62 -513 1 ,852 2,365 3,174 1 ,304 1 ,870 Consider Table 2.1. Total GDP in 2010 was about O $15,459 O $16,520 o $14,964 O $36,698 O $11,790 Question 3 2015 4,012 8,272 3,057 2,963 2,31 1 652 93 -522 2,264 2,786 3,218 1,225 1,993 billion. 1 pts Which of the following is/are NOT included in the expenditure approach to national income accounting? O O O O O government transfers imports investment exports consumption Question 4 Real gross domestic product is defined as the value of all goods: 1 pts O and services produced by an economy's citizens, regardless of where they live, over a period of time, at current prices. O and services produced by an economy, within its borders, over a period of time, at base-year prices. O and services produced by an economy, within its borders, over a period of time, at current prices. O and services produced by an economy's citizens, regardless of where they live, over a period of time, at base-year prices. O produced by an economy, within its borders, over a period of time, at current prices. Question 5 1 pts If we want to calculate the Mexican real GDP in U.S. dollars but adjusted for prices, which of the following would we use? (Note: "Normal" refers to Nominal) O US prices Real GDP O Real O Real MEX' O US prices Real GDP Price levelus x Normal GDPus Price levelMEX Price x Normal GDP Price levelUS Price levelUS + Normal GDPus Price levelMEX Price levelUS x Normal GDP Price levelMEX O None of these answers is correct. Question 6 The chain-weighted measure of real GDP uses prices from a: O constant base year. O constantly changing base year. O base year that changes every five years. O None of these answers is correct. O base year that changes every 10 years. Question 7 Using the expenditure approach, government expenditures include: O O O O O defense and nondefense federal, state, and local government expenditures. federal government expenditures and transfer payments. residential investment and state and local government expenditures. only nondefense federal government expenditures. only state and local government expenditures. Question 8 Which of the following counts toward changes in the current GDP? O The government builds a new highway. O You find $10 on the sidewalk. O You fix your own sink. You purchase a used stereo from a friend. O O None of these answers is correct. Question 9 Refer to the following table when answering the following questions. Table 2.2: U.S. 2014-2015 Domestic Income ($ billions) Compensation of employees, paid Wages and salaries Supplements to wages and salaries Business taxes Business subsidies Net operating surplus Private enterprises Surplus of government enterprises Depreciation of fixed capital (Source: Bureau of Economic Analysis) 2014 9,264 7,487 1,777 1,210 57 4,489 4,509 -20 2,745 201 5 9,704 7,866 1,838 1,238 4,575 4,593 -19 2,831 Consider Table 2.2. From this data, total GDP in 2014 was about billion. O $13,219 O $17,651 O $17,765 $14,963 O O $18,527 Question 10 The National Income and Product Accounts allows us to relate to O total output; total spending; total income O household income; government income; firm income O total output; inflation; total income O household income; household expenditure; total output O total output; total spending; inflation Question 11 1 pts 1 pts 1 pts 1 pts 1 pts to 1 pts D Question 1 The National Income and Product Accounts identity states: D 10,202 12,284 D D D D D D D D D O O O O Production Expenditure Income. Expenditure Production Income. Production Expenditure + Income. Expenditure Production + Income. Production Expenditure Income. 1 pts 1 pts Question 2 Refer to the following table when answering the following questions. Table 2.1: U.S. 2010 and 201 5 Expenditures ($ billions) Personal consumption expenditures Goods Services Gross private domestic investment Fixed investment Nonresidential Residential Change in private inventories Net exports of goods and services Exports Imports Government consumption Federal State and local 2010 3,363 6,839 01 2,039 1 ,658 381 62 -513 1 ,852 2,365 3,174 1 ,304 1 ,870 Consider Table 2.1. Total GDP in 2010 was about O $15,459 O $16,520 o $14,964 O $36,698 O $11,790 Question 3 2015 4,012 8,272 3,057 2,963 2,31 1 652 93 -522 2,264 2,786 3,218 1,225 1,993 billion. 1 pts Which of the following is/are NOT included in the expenditure approach to national income accounting? O O O O O government transfers imports investment exports consumption Question 4 Real gross domestic product is defined as the value of all goods: 1 pts O and services produced by an economy's citizens, regardless of where they live, over a period of time, at current prices. O and services produced by an economy, within its borders, over a period of time, at base-year prices. O and services produced by an economy, within its borders, over a period of time, at current prices. O and services produced by an economy's citizens, regardless of where they live, over a period of time, at base-year prices. O produced by an economy, within its borders, over a period of time, at current prices. Question 5 1 pts If we want to calculate the Mexican real GDP in U.S. dollars but adjusted for prices, which of the following would we use? (Note: "Normal" refers to Nominal) O US prices Real GDP O Real O Real MEX' O US prices Real GDP Price levelus x Normal GDPus Price levelMEX Price x Normal GDP Price levelUS Price levelUS + Normal GDPus Price levelMEX Price levelUS x Normal GDP Price levelMEX O None of these answers is correct. Question 6 The chain-weighted measure of real GDP uses prices from a: O constant base year. O constantly changing base year. O base year that changes every five years. O None of these answers is correct. O base year that changes every 10 years. Question 7 Using the expenditure approach, government expenditures include: O O O O O defense and nondefense federal, state, and local government expenditures. federal government expenditures and transfer payments. residential investment and state and local government expenditures. only nondefense federal government expenditures. only state and local government expenditures. Question 8 Which of the following counts toward changes in the current GDP? O The government builds a new highway. O You find $10 on the sidewalk. O You fix your own sink. You purchase a used stereo from a friend. O O None of these answers is correct. Question 9 Refer to the following table when answering the following questions. Table 2.2: U.S. 2014-2015 Domestic Income ($ billions) Compensation of employees, paid Wages and salaries Supplements to wages and salaries Business taxes Business subsidies Net operating surplus Private enterprises Surplus of government enterprises Depreciation of fixed capital (Source: Bureau of Economic Analysis) 2014 9,264 7,487 1,777 1,210 57 4,489 4,509 -20 2,745 201 5 9,704 7,866 1,838 1,238 4,575 4,593 -19 2,831 Consider Table 2.2. From this data, total GDP in 2014 was about billion. O $13,219 O $17,651 O $17,765 $14,963 O O $18,527 Question 10 The National Income and Product Accounts allows us to relate to O total output; total spending; total income O household income; government income; firm income O total output; inflation; total income O household income; household expenditure; total output O total output; total spending; inflation Question 11 1 pts 1 pts 1 pts 1 pts 1 pts to 1 pts D D D D D D D D D D D Question 11 One consequence of wage rigidity is: O O O O O a lower unemployment rate. labor market stability. None of these answers is correct. lower rates of unemployment. less labor market volatility. Question 12 1 pts 1 pts In the labor market, the intersection of the supply and demand for labor determines: O O O O O the wage and the population, N. the wage and the number of discouraged workers. inflation and the real wage. the interest rate and the unemployment rate. the wage and the employment-population ratio, L/N. Question 13 Any institutional fixed wage set above the equilibrium wage is called: O a wage ceiling. O a minimum wage. O a real rigidity. O the market wage. O a wage rigidity. Question 14 Refer to the following figure when answering the following questions. 1 pts 1 pts Figure 7.3: Labor Market WAGE LD LS L? EMPLOYMENT In the labor market depicted in Figure 7.3, a decrease in labor regulation shifts labor: O demand from 2 to Ll . O None of these answers is correct. O supply from to L2 . O demand from to L2 O supply from 2 to Ll . Question 15 1 pts One possible explanation for a high steady-state level of unemployment is: O O O O O the existence of a small number of institutional restrictions. a shrinking labor force. perfectly flexible wages. a high job-separation rate. a rising job-finding rate. Question 16 A decrease in the income tax will result in: O the labor supply curve shifting right. O the labor supply curve shifting left and the labor demand curve shifting right. O neither the labor supply nor the demand curve shifting. O the labor demand curve shifting left. O the labor demand curve shifting right. Question 17 The natural rate of unemployment is decomposed into unemployment. O structural, frictional, and seasonal O structural and frictional O structural and seasonal O cyclical and frictional seasonal and frictional O Question 18 The labor demand curve slopes downward because: O None of these answers is correct. O O O O wages are inflexible. of the diminishing marginal product of labor. wages are higher when demand falls. of the income effect. 1 pts 1 pts 1 pts 1 pts Question 19 Refer to the following figure when answering the following questions. Figure 7.4: Labor Market WAGE LS LD EMPLOYMENT Consider the labor market depicted in Figure 7.4. If the market wage is fixed at T, it is called O the market wage; increases and it O O O a wage rigidity; decreases a wage rigidity; increases a wage ceiling; does nothing to O the market wage; does nothing to Question 20 unemployment. 1 pts The natural rate of unemployment is the unemployment rate that would prevail: O O O O O during seasonal changes in the economy. if inflation were zero. if there were no discouraged workers. if the unemployment rate were zero. if the economy were in neither a boom nor a recession. Question 21 1 pts Empirically, a large amount of evidence suggests that money neutrality O O O O O but changes in money supply holds in the short run; do not affect nominal variables does not hold in the long run; have an effect on unemployment in the long run holds in the long run; can have real effects in the short run does not hold in the long run; can have real effects in the short run holds in the short run; can have real effects in the long run D D D D D D D D D Question 22 According to the classical dichotomy, in the long run there is: O no growth after the economy reaches the steady state. O perfect connectivity between the nominal and real sides of the economy. O accelerating economic growth. zero inflation. O O complete separation of the nominal and real sides of the economy. Question 23 1 pts 1 pts In 201 5, The Avengers: Age of Ultron generated about $1 91.2 million on its opening weekend. In 2007, Spider Man 3 generated $151.1 million on its opening weekend. If the CPI in 2000 was 100, the CPI in 2007 was 113.4, and the CPI in 2015 was 137.6, is the larger single-day grossing movie, with about O Avengers; $263.2 O spider Man; $171.3 O Avengers; $138.9 O spider Man; $133.6 O spider Man; $168.6 Question 24 million in revenues in 2000 dollars. 1 pts You are the head of the central bank and you want to maintain 2 percent long-run inflation. Using the quantity theory of money, if real GDP growth is 4 percent and velocity is constant, you suggest a: O O O O O None of these answers is correct. 4 percent money supply growth. 2 percent money supply growth. 6 percent interest rate. 0 percent money supply growth. Question 25 The real interest rate describes the: O O O O O return with an interest rate equal to zero. rate of return in real goods. net return to government bonds. rate of return in units of a currency. rate of return adjusted for inflation. Question 26 1 pts 1 pts If long-run real GDP growth is determined by real changes in the economy, the quantity theory of money implies that changes in: O the money growth rate lead one-for-one to changes in the inflation rate in the long run. O the money growth rate lead one-for-one to changes in the inflation rate, but only in the short run. O velocity lead one-for-one to changes in the inflation rate. O None of these answers is correct. O the money growth rate lead to a greater than one-for-one change in the inflation rate in the long run. Question 27 If Pt is the price level in time, t, inflation is calculated as: O PtfPt+l. O Pt+l O (Pt+l Question 28 According to the quantity theory of money, the price level is: O determined by the money supply only. O determined by the volume of goods produced. O determined by the ratio of the effective quantity of money to the volume of goods. O exogenous. O indeterminate in the long run. Question 29 Negative inflationary surprises lead to a(n): O increase in the real interest rate. O decline in inflation risk for lenders. O redistribution of wealth from borrowers to lenders. O decline in the nominal interest rate. O redistribution of wealth from lenders to borrowers. Question 30 With unanticipated inflation: 1 pts 1 pts 1 pts 1 pts O debtors with an indexed contract are hurt, because they pay more than they contracted for in nominal terms. O debtors with an unindexed contract lose, because they pay exactly what they contracted for in nominal terms. O creditors are hurt unless they have an indexed contract, because they get less than they expected in real terms. O creditors with indexed contracts gain, because they receive more than they contracted for in nominal terms. O debtors with an indexed contract are hurt, because they pay more than they contracted for in real terms.