Question

19. The consumer price index is the A) cOst of a market basket of goods and services typically consumed in the base year B) cost of a market basket of goods and services typically consumed in the current period. C) average of the prices of the goods and services purchased by a typical urban family of four. D) average of the prices of new final goods and services produced in the economy over a period of time 20. If your nominal wage rises more slowly than the price level, we can say your real wage has and the purchasing power of a dollar has A) fallen; fallen B) fallen; risen C) risen; risen D) risen; fallen 21. Which of the following would contribute to a sustained high rate of economic growth in the long run in an economy? A) growth in capital per hour worked accompanied by technological change B) increases in labor force participation rates as workers who are out of the labor force pursue rising wages C) a shift of workers in the economy from the agricultural sector to the nonagricultural sector D) an influx of immigrant labor into an economy without any accompanying technological change 22. One difference between stocks and bonds is that. A) stocks are financial securities, while bonds are labor market securities. B) stocks are usually issued in electronic form, while bonds are usually issued in paper form. C) stocks represent ownership in companies, while bonds represent ownership in banks. D) stocks do not involve a promise to repay a purchaser of the stock, while bonds represent a promise to repay the purchase price of the bond 23. As the economy nears the end of a recession, which of the following do we typic see? A) further decreases in consumer spending B) increased spending on capital goods by firms C) increasing interest rates D) all of the above

Answer 1

price level Augs of the price of the goods & services purchased by a typical waben family Real wage deceases ble Realwage - Nowi w wage & proachesing power of a dollar has fallen. in capital I worken accompanied by technological change sustains high co growts. Stocks are owenesting a no promise to sepay whereas bonds are promise to repay.