Homework Answers
23.Ans: b) equal to investment
Explanation:
In a closed economy , National saving = Private saving + Public saving
In a closed economy , national saving is equal to investment.
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d. leaves both the GDP deflator and the consumer price index unchanged. 23. In a closed...
The broadest-based price index available is the A) GDP deflator. B) producer price index. C) consumer price index....
The broadest-based price index available is the A) GDP deflator. B) producer price index. C) consumer price index. D) wholesale price index. The MPC is A) the change in consumption divided by the change in income. B) consumption divided by income. C) the change in consumption divided by the change in saving. D) the change in saving divided by the change in income. The MPS is A) the change in saving divided by the change in income. B) 1 +...
The broadest-based price index available is the A) GDP deflator. B) producer price index. C) consumer...
The broadest-based price index available is the A) GDP deflator. B) producer price index. C) consumer price index. D) wholesale price index.
How does the Consumer Price Index differ from the GDP deflator? Explain what is meant by...
How does the Consumer Price Index differ from the GDP deflator? Explain what is meant by the "substitution bias" in the CPI. If food prices increase by 10%, and people always spend 25% of their total consumption expenditure on food, how much will the CPI increase (all other prices stay the same)?
sing and government purchases are leakages. 8. In a mixed closed economy: A taxes and government...
sing and government purchases are leakages. 8. In a mixed closed economy: A taxes and government purchases are leakages, while investment and saving are injections. • taxes and investment are injections, while saving and government purchases are leakages. taxes and savings are leakages, while investment and government purchases are injections. 1. government purchases and saving are injections, while investment and taxes are leakages. 9. In a mixed open economy, the equilibrium GDP is determined at that point where: A.S. +M+...
The inflation rate reported in the news is usually calculated from the GDP deflator rather than the consurner price index.
The inflation rate reported in the news is usually calculated from the GDP deflator rather than the consurner price index.True False
17. The consumer price index is used to convert nominal GDP into real GDP. turn dollar...
17. The consumer price index is used to convert nominal GDP into real GDP. turn dollar figures into meaningful measures of purchasing power. characterize the types of goods and services that consumers purchase. measure the quantity of goods and services that the economy produces. a b. C d. Por M 18. When the consumer price index falls, the typical family has to spend more dollars to maintain the same standard of living. b. can spend fewer dollars to maintain the...
Suppose the price of thes e respond by bumer e The consumer price reflects this price...
Suppose the price of thes e respond by bumer e The consumer price reflects this price increase accurately understates the price increase due to the so-called income bus overstates the price increase due to the so-called incomebas overstates the price increase due to the so-called substitution bias QUESTION 15 Laura bought word processing software in 2005 for 550. Laura's twin brother, Laurence, buys an upgrade of the same software in 2006 for $50. What problem in the construction of the...
Suppose that in a closed economy GDP is equal to 20,000, consumption equal to 15,000, government...
Suppose that in a closed economy GDP is equal to 20,000, consumption equal to 15,000, government purchases equal 4,000 and taxes equal 3,000. What are private saving, public saving, and national saving? a. -2,000, 1,000, and 2,000, respectively. b. 1,000, 2,000, and 3,000, respectively. c. 2,000, -1,000, and 1,000, respectively. d. 2,000, 1,000, and 2,000, respectively.
Fruitland is a closed economy that always produces and consumes 50 apples and 50 bananas. Initially...
Fruitland is a closed economy that always produces and consumes 50 apples and 50 bananas. Initially both apples and bananas cost $1 each. Then demand shifts, so the price of apples doubles to $2 and the price of bananas halves to 50 cents, but production and consumption of apples and bananas stays the same. Calculate the effect on: Nominal GDP, Real GDP, the GDP Deflator, and the Consumer Price Index.
6. The index can be used to measure an overall inflation rate of an economy. (a....
6. The index can be used to measure an overall inflation rate of an economy. (a. True b. False) 7. The official inflation rate by the government is always underestimated and lower than the actual inflation rate. (a. True b.False) 8. Public saving is equal to national saving plus private saving. (a. True b. False) 9. Hugh government budget deficit can make an economy grow slower in the long run. (a. True b.False) 10. Both supply and demand for loanable...
The broadest-based price index available is the A) GDP deflator. B) producer price index. C) consumer price index. D) wholesale price index. The MPC is A) the change in consumption divided by the change in income. B) consumption divided by income. C) the change in consumption divided by the change in saving. D) the change in saving divided by the change in income. The MPS is A) the change in saving divided by the change in income. B) 1 +...
The broadest-based price index available is the A) GDP deflator. B) producer price index. C) consumer price index. D) wholesale price index.
sing and government purchases are leakages. 8. In a mixed closed economy: A taxes and government purchases are leakages, while investment and saving are injections. • taxes and investment are injections, while saving and government purchases are leakages. taxes and savings are leakages, while investment and government purchases are injections. 1. government purchases and saving are injections, while investment and taxes are leakages. 9. In a mixed open economy, the equilibrium GDP is determined at that point where: A.S. +M+...
17. The consumer price index is used to convert nominal GDP into real GDP. turn dollar figures into meaningful measures of purchasing power. characterize the types of goods and services that consumers purchase. measure the quantity of goods and services that the economy produces. a b. C d. Por M 18. When the consumer price index falls, the typical family has to spend more dollars to maintain the same standard of living. b. can spend fewer dollars to maintain the...
Suppose the price of thes e respond by bumer e The consumer price reflects this price increase accurately understates the price increase due to the so-called income bus overstates the price increase due to the so-called incomebas overstates the price increase due to the so-called substitution bias QUESTION 15 Laura bought word processing software in 2005 for 550. Laura's twin brother, Laurence, buys an upgrade of the same software in 2006 for $50. What problem in the construction of the...
6. The index can be used to measure an overall inflation rate of an economy. (a. True b. False) 7. The official inflation rate by the government is always underestimated and lower than the actual inflation rate. (a. True b.False) 8. Public saving is equal to national saving plus private saving. (a. True b. False) 9. Hugh government budget deficit can make an economy grow slower in the long run. (a. True b.False) 10. Both supply and demand for loanable...
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