1. D
Explanation: Money has four functions - unit of account, store of value, medium of exchange and a standard of deferred payment.
2. Option D
Explanation: Standard of living depends on real income. Although nominal income i.e. dollar income has risen, we need information regarding price level changes in order to determine changes in real income.
3. B.
Explanation: CPI refers to the change in the price level of the basket of goods most generally consumed by consumers.
4. B
Explanation: Through GDP, we measure the total income as well as total spending on goods and services produced in an economy.
5. C
Explanation: GDP measures the total income as well as total spending on goods and services produced in an economy.
6. A
Explanation: CPI refers to consumer price index. CPI is used to compare the price level of a basket of goods commonly consumed by consumers. The goods and their quantity in the index are determined after consumer surveys.
7. B
Explanation: Productivity refers to output for each unit of input.
Fed buys bonds in the open market influence the money supply it create money, they create...
3] The inflation rate you are likely to hear on the nightly news is calculated from a. the GDP deflator. b. the CPI. c. the Dow Jones Industrial Average. d. the unemployment rate. [4] Gross domestic product measures two things at once a. the total spending of everyone in the economy and the total saving of b. the total income of everyone in the economy and the total expenditure everyone in the economy on the economy's output of goods and...
1. TRUE/FALSE( 1 mark per question, 20 marks in total) [1) An economy's income is the same as its expenditure because every transaction has a buyer and a seller. 2) GDP is the market value of all final goods and services produced by a country's citizens in a given period of time. [3) If nominal GDP is $10,000 and real GDP is $8,000, then the GDP deflator is 125. 14) Other things equal, in countries with higher levels of real...
1. 2. If the Fed wants to reduce the money supply through open market operations, it will Select the correct answer below : sell bonds buy bonds Oreduce the required reserves ratio reduce the discount rate 3. A growing debt/GDP ratio could mean that, all else the same, Select the correct answer below: the government is running large budget deficits the government is paying down the debt government expenditures are less than tax revenues. the economy is in a growth...
2.5 pts Question 15 Which of the following is a positive economic statement? The government should close Income tax loop Everyone should live at the same standard of living If the price of mine rises, a smaller quantity of it will be bought. U.S.forms should not be allowed to outsource production of goods and services. 2.5 pts Question 16 Suppose the economy is at a short-run equilibrium GDP that lies below potential GDR Which of the following will occur because...
46. In the AD-AS model, an unexpected decrease in the growth rate of the money supply causes: A) a rightward shift of the AD curve and then a leftward shift of the SRAS curve. B) a rightward shift of the AD curve and then a rightward shift of the SRAS curve. C) a leftward shift of the AD curve and then a leftward shift of the SRAS curve. D) a leftward shift of the AD curve and then a rightward...
31. Which one of the following would not shift the aggregate demand curve? a. a change in the price level. b. Depreciation of the international value of the dollar c. A decline in the interest rate at each possible price level. d. An increase in personal income tax rates. 32. The short-run aggregate supply curve (SRAS) shows the relationship between The general level of prices and the quantity of goods and services purchased by all consumer sin the economy. b....
need it as soo as posible please, thanks Macroeconmics received a 39 increase in your bominal wage and over the year, ination ran about 30) Suppose you received a Which of the following is nie? a) your nominal wage fell b) your real wage feil c) although your nominal wage fell your real waye d) both nominal and real wages increased 31) The actual rate of unemploy rate of employment will be greater than the naturale actual output in weater...
22. According to the authors of the text, money is a force multiplier in that it: a. eliminated the disadvantage that arises from the double coincidence of wants. b. reduces the number of prices. c. provides valuable role for gold in a money economy. d. All of the above. e. Only A and B of the above 38. Carmen has $2000 in cash that she had been holding onto for a while and has decided to deposit this money into...
1. TRUE/FALSE( 1 mark per question, 20 marksi 11] An economy's income is the same as its total) expenditure because every has a buyer and a seller every transaction ket value of all final goods and services produced by a country's citizens in a given period of time p) If'nominal GDP is $10,000 and real GDP is $8,000 then the GDP deflator is 125. thines equal, in countries with higher levels of real GDP per person, life expectancy and literacy...
(1) If the world price is above the domestic equilibrium price, the domestic country is likely to ____________________ the good. (2) The difference between what an economy sells to and buys from foreigners is _________________. (3) The idea that exchange rates and prices adjust to equalize the cost of living across international boundaries is called __________________________. (4) In the graph below, when the world price is $3, how many units are...