Homework Answers
Question 1 False
(It is the real income that is more important to consumers as it is
adjusted for inflation)
Question 2 True
(Real income = nominal income/inflation so if inflation remains
same then real income increases with increase in nominal
income)
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D l Question 1 Nominal (or money) income is more important to the consumer than real...
Question 1 1 pts Which of the following is not a price index? the Consumer Price...
Question 1 1 pts Which of the following is not a price index? the Consumer Price Index the Producer Price Index the GDP deflator o all of these are price indices Question 2 1 pts In the Specter article, Deli $ could be considered money O They served as a store of value. They served as a means of payment. They served as a unit of account. They paid interest Question 3 1 pts Use statements I and Il to...
Typically, more people are involved in a single business purchase decision than in a consumer purchase...
Typically, more people are involved in a single business purchase decision than in a consumer purchase decision. True False The sales and profits rise and fall at the same rate as shown on the product life cycle. True False Despite the amount of time and money spent on developing and testing new products, a large proportion of new-product introductions fail. True False
Question 1 Generally, the ________ value is more important than the __________ value of a given...
Question 1 Generally, the ________ value is more important than the __________ value of a given statistic since it is more contextual. Select the two responses below that correctly fill in the blanks. Select all that apply: nominal; real real; nominal unadjusted; inflation-adjusted inflation-adjusted; unadjusted Question 2 Households are interviewed by the U.S. Bureau of Labor Statistics eight times over two years, for the _______________ before leaving the sample permanently. Select the correct answer below: a. labor force participation count...
Question 8 For a given amount of nominal income, the real income will: Fall if the...
Question 8 For a given amount of nominal income, the real income will: Fall if the price level falls Be unaffected if the price level falls O Fall if the price level rises O Rise as the price level rises
From an economist's perspective, analyzing nominal GDP data is more useful than analyzing real GDP data?...
From an economist's perspective, analyzing nominal GDP data is more useful than analyzing real GDP data? OA) True QB) False
4. If nominal money demand doubles and the real money supply also does what happens to...
4. If nominal money demand doubles and the real money supply also does what happens to the price level ( ). The price level increases by a factor of four b. The price level doubles ). The price level is unchanged. d. The price level falls by one-half. IL Short-Answer O stiens (19 points) 5. (7 points) If the Federal Reserve sold government securities, then the money supply (increase decrease remain the same), the money he would _(increase decrease remain...
1. What is the difference between "nominal" and "real" national income? 2. Explain the "business cycle"...
1. What is the difference between "nominal" and "real" national income? 2. Explain the "business cycle" and its relevance to macroeconomics 3. Explain the concept of "full employment". Does this mean there are no unemployed persons in the economy? Why? How does the "consumer price index" measure inflation and why is this important? What is the difference between "growth" and "fluctuations" and why is this important? 4.
O Cucome my price cente proportionat cater than the inten nominal income Yes, because real income...
O Cucome my price cente proportionat cater than the inten nominal income Yes, because real income may fall if price increases are proportionally less than the increases in nominal income 4 Question 30 (1 point) A lender need not be penalized by inflation if the: 3: 6 lender correctly anticipates inflation and increases the nominal interest rate accordingly ulong-term rate of inflation is less than the short-term rate of inflation 4: inflation is unanticipated by both borrower and lender 8...
According to the quantity equation, if velocity is stable, an increase in the money supply of...
According to the quantity equation, if velocity is stable, an increase in the money supply of three percent and an increase in real GDP of four percent causes the price level to rise by one percent. true false Money demand refers to how much wealth people want to hold in liquid form and money demand depends on both the price level and the interest rate true false Bertha gives her employees a $1 increase in their hourly wage. However, the...
QUESTION 1 If firms decide to raise more funds through the sale of bonds, interest rates...
QUESTION 1 If firms decide to raise more funds through the sale of bonds, interest rates will rise. True False 1 points QUESTION 2 If the price of bonds is higher than the market equilibrium then their price will fall and interest rates will fall as well. True False 1 points QUESTION 3 As explained in the text, assets may be financial or non-financial. True False 1 points QUESTION 4 In deciding what assets to hold, people...
Question 1 1 pts Which of the following is not a price index? the Consumer Price Index the Producer Price Index the GDP deflator o all of these are price indices Question 2 1 pts In the Specter article, Deli $ could be considered money O They served as a store of value. They served as a means of payment. They served as a unit of account. They paid interest Question 3 1 pts Use statements I and Il to...
Question 8 For a given amount of nominal income, the real income will: Fall if the price level falls Be unaffected if the price level falls O Fall if the price level rises O Rise as the price level rises
From an economist's perspective, analyzing nominal GDP data is more useful than analyzing real GDP data? OA) True QB) False
4. If nominal money demand doubles and the real money supply also does what happens to the price level ( ). The price level increases by a factor of four b. The price level doubles ). The price level is unchanged. d. The price level falls by one-half. IL Short-Answer O stiens (19 points) 5. (7 points) If the Federal Reserve sold government securities, then the money supply (increase decrease remain the same), the money he would _(increase decrease remain...
1. What is the difference between "nominal" and "real" national income? 2. Explain the "business cycle" and its relevance to macroeconomics 3. Explain the concept of "full employment". Does this mean there are no unemployed persons in the economy? Why? How does the "consumer price index" measure inflation and why is this important? What is the difference between "growth" and "fluctuations" and why is this important? 4.
O Cucome my price cente proportionat cater than the inten nominal income Yes, because real income may fall if price increases are proportionally less than the increases in nominal income 4 Question 30 (1 point) A lender need not be penalized by inflation if the: 3: 6 lender correctly anticipates inflation and increases the nominal interest rate accordingly ulong-term rate of inflation is less than the short-term rate of inflation 4: inflation is unanticipated by both borrower and lender 8...
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