-
80. Using your knowledge of the economy, answer the
following
80a. Which statement correctly describes the effects of
fiscal instruments/measures?
a. Government spending increases aggregate expenditures;
taxes increase disposable income, and hence
consumption.
b. Government spending increases aggregate expenditures;
taxes reduce disposable income, and hence consumption.
c. Government spending decreases aggregate expenditures;
taxes increase disposable income, and hence
consumption.
80b. An economy grows if:
a. labor expands at a more rapid pace than
capital.
b. capital expands at a more...
-
11. Which of the following statements correctly describes the relationship between the interest rate and money demand? A. When the interest rate increases, money demand increases because interest-paying bonds become more attractive than the money balance. B. When the interest rate increases, money demand increases because interest-paying bonds become less attractive than the money balance. c. When the interest rate increases, money demand decreases because interest-paying bonds become more attractive than the money balance. D. When the interest rate increases,...
-
An individual with a Ph.D. in physics who can find employment
only in a pizza parlor would be considered:
a.
discouraged.
b.
long-term unemployed.
c.
underemployed.
d.
voluntarily unemployed.
e.
overemployed.
Suppose the total population of an economy is 150 million, the
labor force is 100 million, and the unemployment is 94 million. The
unemployment rate is _____.
a.
80 percent
b.
15 percent
c.
6 percent
d.
94 percent
e.
10 percent
Which of the following would be included...
-
3rd attempt Which of the following can be responsible for a drop in the unemployment rate? Choose one or more: A. More people become employed. B. The labor force shrinks. C. There is an increase in the number of discouraged workers. D. More people with full-time jobs become part-time workers. 2nd attempt Which of the following can lower the level of frictional unemployment over time? Choose one or more: A. reducing the regulations on hiring practices in a country B....
-
1. Perhaps the most fundamental relationship in all of economics
is which of the following? (a) spin rates and curves; (b) human
capital accumulation and the performance of the VIX index; (c) real
disposable income and personal consumption expenditures; (d) money
supply growth and in-flow of immigrants.
2. When increases in the money supply are said to have no
lasting impact upon the level and composition of output, we say
that money is: (a) neutral; (b) inflationary; (c) green; (d)...
-
Q1 Which of the following are included and which are excluded in calculating this year's GDP. Explain in each instance. a. A monthly scholarship cheque received by an economics student b. The purchase of an almost new tractor by farmer Kojo C. The cashing in of a savings bond d. An increase in business inventories e. Tim Horton's purchases a corner grocery store f. Fearless Qweenie Kong, a stuntwoman, purchases a life insurance policy for a billion dollars ($) g....
-
1. Which of the following best describes the relationship
between inflation and unemployment?
A) As inflation increases, unemployment will always increase
B) It includes periods in which there is a trade-off between the
two, but is overall more nuanced and varied
C) There is never a trade-off between inflation and
unemployment
D) It adheres to the Phillips curve trade-off in both the short
and long run time periods
2. A large decrease in government purchases due to a reduction
in...
-
1.) Which of the following is included in an individual
taxpayers federal gross income?
A. Disaster relief payment
B. A federal income tax refund
C.Interest on state and local municipal bonds
D. Unemployment compensation
2.) Which of the following is an example of unearned income?
A. Compensation received by a self employment, freelance
photographer for service provided.
B. Interest earned on saving account
C. Tip
D. Wages from a part time job
3.) Howard and Teresa were married for 52...
-
1. An economy's unemployment rate is at 5%. A recession starts
after there is a drop in business investments, which leads to a 4%
rise in unemployment. After many months, the unemployment rate goes
by to 5%. What explains the drop in unemployment?
a)Spending multiplier
b)the money multiplier
c)The natural rate hypothesis
d)menu costs
e)Permanent income hypothesis.
2.
Suppose consumption expenditures in Japan can be modeled by the
equation: C = ¥50 trillion + 0.8 Yd, where Yd
is aggregate...
-
Which of the three measures of inflation measures the average price level of the largest number 19. of goods? a. The CP b. The GDP Deflator c. The Producer Price Index d. The Wholesale Price Index 20. Which of the following is NOT a reason why people save a. To smooth consumption over their lives b. To finance their future retirement c. As a way to transfer income from good times to bad d. To increase investment 21. If the...
11. Which of the following statements correctly describes the relationship between the interest rate and money demand? A. When the interest rate increases, money demand increases because interest-paying bonds become more attractive than the money balance. B. When the interest rate increases, money demand increases because interest-paying bonds become less attractive than the money balance. c. When the interest rate increases, money demand decreases because interest-paying bonds become more attractive than the money balance. D. When the interest rate increases,...
3rd attempt Which of the following can be responsible for a drop in the unemployment rate? Choose one or more: A. More people become employed. B. The labor force shrinks. C. There is an increase in the number of discouraged workers. D. More people with full-time jobs become part-time workers. 2nd attempt Which of the following can lower the level of frictional unemployment over time? Choose one or more: A. reducing the regulations on hiring practices in a country B....
Q1 Which of the following are included and which are excluded in calculating this year's GDP. Explain in each instance. a. A monthly scholarship cheque received by an economics student b. The purchase of an almost new tractor by farmer Kojo C. The cashing in of a savings bond d. An increase in business inventories e. Tim Horton's purchases a corner grocery store f. Fearless Qweenie Kong, a stuntwoman, purchases a life insurance policy for a billion dollars ($) g....
Which of the three measures of inflation measures the average price level of the largest number 19. of goods? a. The CP b. The GDP Deflator c. The Producer Price Index d. The Wholesale Price Index 20. Which of the following is NOT a reason why people save a. To smooth consumption over their lives b. To finance their future retirement c. As a way to transfer income from good times to bad d. To increase investment 21. If the...