Term
If a u.s citizen buys a dress made in nepal by a nepalese firm, then
a. us comp decreases, us net exports increase, us gdp unaffected
b. us comp increases, us net exports decreases, and us gdp decreases
c. us comp increases, us net exports deacreases, us gdp unaffected
d. us comp decreases, us net exports increases, us gdp increases |
|
Definition
| u.s consumption increases, u.s net exports decreases, and u.s gdp is unaffected |
|
|
Term
one bag of flour is sold for 1.00 to the bakery, which uses the flour to bake bread that is sold for 3.00 to a consumer. A second bag of flour is sold to a consumer in a grocery store for 2.00. take these three transactions into account, what is the effect of GDP?
a. gdp increases by 5.00
b. gdp increases by 6.00
c.gdp increases by 3.00
d.gdp increases by 2.00 |
|
Definition
|
|
Term
a decrease in the price of domestically produced industrial robots will be reflected in
a. neither gdp deflator nor cpi
b.the cpi but not gdp deflator
c.both gdp deflator and cpi
d.gdp deflator but not cpi |
|
Definition
| the gdp deflator but not in the consumer price index |
|
|
Term
ruben earned a salary of 60,000 in 2001 and 80,000 in 2006. the consumer price index was 177 in 2001 and 221.25 in 2006. rubens 2001 salary in 2006 dollars is:
a. 75000, purchasing power decreased
b.85000, purchasing power increased
c. 75000, purchasing power increased
d. 85000, purchasing power decreased |
|
Definition
| 75,000 thus, rubens purchasing power increased between 2001 and 2006 |
|
|
Term
suppose that over the past year, the real interest rate was 5 percent and the inflaction rate was 3 percent. it follows that:
a.dollar value savings increased at 8%, purchasing power savings increased 5%
b.dollar value savings increased 5%, purchasing power savings increased 8%
c.dollar value savings increased 8%, purchasing power savings increased 2%
d.dollar value savings increased 5%, purchasing power increased 2% |
|
Definition
| the dollar value of savings increased at 8 percent, and the purchasing power of saving increased at 5 percent |
|
|
Term
ethel purchased a bag of groceries in 1970 for $8. she purchased the same bag of groceries in 2006 for $25. if the price index was 38.8 in 1970 and the price index was 180 in 2006, what is the price of the 1970 bag of groceries in 2006 dollars?
a. 29.11
b.5.39
c.25.00
d.37.11 |
|
Definition
|
|
Term
Jaime transfers $2500 from his checking account to his savings account. this transaction will
a.decrease m1 and not change m2
b. increase m1 and m2
c.not change m1 and decrease m2
d. decrease m1 and m2 |
|
Definition
| decrease m1 and not change m2 |
|
|
Term
the leader of atlantis hires you as an economic consultant. he is concerned that the output level in atlantis is too low and that this will cause prices to fall. he feels that it is necesseary to increase output by 200 billion. he tells you the mpc in atlantic is .8. which of the following would be the best advice to give to the atlantic president?
a.decrease taxes by 50 bil
b.increase gov spending by 100 bil
c.reduce gov spending by 100 bil
d.increase gov spending by 200 bil |
|
Definition
| decrease taxes by 50 billion |
|
|
Term
starting at eqm in the money market, a decrease in aggregate output, ceteris parabus, will cause the demand for money to______ and the interest rate to_____.
a. increase;decrease
b.increase;increase
c.decrease;increase
d.decrease;decrease |
|
Definition
|
|
Term
as interest rate falls, people hold _______ money instead of bonds because the opportunity cost of holding money has _______.
a.more;risen
b.less;fallen
c.less;risen
d.more;fallen |
|
Definition
|
|
Term
if the fed sells gov securities, then there is
a.increase money supply
b.increase required reserve ration
c.decrease discount rate
d.decrease supply of money |
|
Definition
| a decrease in the supply of money |
|
|
Term
an increase in the level of aggregate output and the purchase of gov securities by the fed will have what effect on the eqm interest rate?
a.interdeterminate effect on interest rate
b.no effect on interest rate
c.decrease on interest rate
d.increase on interest rate |
|
Definition
| a indeterminate effect on the interest rate |
|
|
Term
stating at eqm in the money market, when the fed sells gov securties, ceteris parabus, the money supply shifts to the _____ and the eqm interest rate _____.
a.left;rises
b.right;falls
c.left;falls
d.right;rises |
|
Definition
|
|
Term
refer to equation 9.1 the eqm level of output for the italian economy is:
a.3,8000
b.2,850
c.3,145
d.3,700 |
|
Definition
|
|
Term
the president of vulcan hires you as an economic consultant. he is concerned that the output level in vulcan is too high and that this will cause prices to fall. he feels that it is necessary to reduce output by 10 billion. he tells you that the mpc in vulcan is .6. which of the following would be the best advice to give the vulcan president?
a.reduce gov purchases by 10 bil
b.increase taxes by 10 bil
c.increase taxes by 2.5 bil
d.reduce gov purchase by 4 bil |
|
Definition
| reduce gov purchases by 4 billion |
|
|
Term
assume there is no govt of foreign sector. if c=100+ .8Y and I= 50, then the eqm level of income is
a.600
b.375
c.187.5
d.750 |
|
Definition
|
|
Term
assume there is no goverment or foriegn sector. if the multiplier is 10, a 10 billion increase in planned investment will cause aggregate output to increase by
a.5 bil
b. 10 bil
c.1 bil
d.100 bil |
|
Definition
|
|
Term
refer to table 9.1 at an output level of 1200 billion, the level of aggregate expenditures is
a.1,400 bil
b.1,300 bil
c.1,200 bil
d.1,000 bil |
|
Definition
|
|
Term
refer to table 9.1 at an output level of 2,000 the value of savings is
a.100 bil
b.200 bil
c.cannot be determined from given info
d.300 bil |
|
Definition
|
|
Term
refer to table 9.1. at an output level of 1,200 billion there is an unplanned inventory change of
a.postive 10 bil
b.zero
c.postive 100 bil
d.negative 100 bil |
|
Definition
|
|
Term
refer to table 9.1 the eqm level of output is______ billion
a.800
b.2,000
c.1,600
d.1,200 |
|
Definition
|
|
Term
refer to the (t) table above. the banks reserve ratio is
a.8.12%
b.92.5%
c.7.5%
d.100% |
|
Definition
|
|
Term
refer to the (t) table above. if all banks in the economy have the same reserve ration as this bank, then the value of the economy's money multiplier is
a.13.33
b.10.81
c.1.33
d.10.00 |
|
Definition
|
|
Term
refer to the (t) table above. if all the banks in the economy have the same reserve ratio as this bank, then an increase in reserves of 150 for this bank has the potential to increase deposits for all banks by
a.2,000
b.866.67
c.1666.67
d.infinate amount |
|
Definition
|
|
Term
refer to table 6.3 the value for national income in billions of dollars is
a.710
b.750
c.800
d.825 |
|
Definition
|
|
Term
refer to table 6.3. the value for gross domestic product in billions of dollars is
a.720
b.800
c.920
d.975 |
|
Definition
|
|
Term
refer to table 7. the cost of the basket in 2006 was
a.32
b.480
c.280
d.200 |
|
Definition
|
|
Term
refer to table 7. if 2006 is the base year, then the consumer price index was
a.200 in 2006, 135 in 2007, 155 in 2008
b.200 in 2006, 270 in 2007, 310 in 2008
c.100 in 2006, 270 in 2007, 310 in 2008
d.100 in 2006, 135 in 2007, 155 in 2008 |
|
Definition
| 100 in 2006, 135 in 2007, and 155 in 2008 |
|
|
Term
refer to table 7. the inflation rate was
a.22.6% 2007 and 12.9% 2008
b.35% 2007 and 14.8% 2008
c.35% 2007 and 20% 2008
d.25.9% 2007 and 14.8% 2008 |
|
Definition
| 35 percent in 2007,and 14.8 percent in 2008 |
|
|
Term
table below contains data for fallon. what was fallon's GDP in 2008
a.7253
b.8147
c.7136
d.6359 |
|
Definition
|
|
Term
table count of harrison. in 2006, harrison's
a.nom gdp 585, real gdp 660, def 88.6
b.nom gdp 760, real gdp 670, def 113.4
c.nom gdp 585, real gdp 670, def 115.2
d.nom gdp 760, real 670, def 87.3 |
|
Definition
| nominal GDP was $760, real GDP was $670, and the GDP deflator was 113.4 |
|
|
Term
refer to table 7.1. what was country a's unemployment rate in 2009
a.12.7
b.22.1
c.15.9
d.8.0 |
|
Definition
|
|
Term
refer to table 7.1. what was country a's labor force participation rate in 2009
a.63
b.55
c.66.9
d.87.3 |
|
Definition
|
|
