Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Multiple choice macroeconomic problems related to GDP, Cyclical unemployment,

1. Which of the following is a long-run macroeconomic policy goal?

1. reduce unemployment

2. increase inflation

3. promote steady growth

4. eliminate recession

2. Real GDP is

1.the best measure we have for total production, though it does have some flaws.

2.the worst measure we have of total production because it misses much of what is produced.

3.the best measure we have for total production because it doesn\\\'t miss anything.

4.ignored as a measure of total production because it is does not take account of inflation.

3. If the CPI was 132.5 at the end of 2003 and 140.2 at the end of 2004, the inflation rate over these two years was

1.7.7 percent.

2.5.4 percent.

3.4.4 percent.

4.5.8 percent.

4. If our exports are $1.2 billion and our imports are $1.7 billion,

1.the United States is lending to the rest of the world.

2.U.S. national saving is too high.

3.the United States is borrowing from the rest of the world.

4.U.S. investment must decrease.

5. In the expenditure approach to GDP, the largest component is

1.government purchases.

2.personal consumption expenditures.

3.gross private domestic investment.

4.net exports.

6. If a larger fraction of the adult population is working, household production

1.counted in real GDP increases.

2.not counted in real GDP increases.

3.counted in real GDP decreases.

4.not counted in real GDP decreases.

7. Suppose the working age population in Tiny Town is 100 people. If 25 of these people are NOT in the labor force, the ____ equals ____.

1.unemployment rate; 25/100 x 100

2.unemployment rate; 25/125 x 100

3.labor force; 75

4.labor force; 25/100 x 100

8. Cyclical unemployment

1.is due mainly to job leavers.

2.may increase or decrease during an expansion.

3.occurs when technology improvements change job requirements.

4.fluctuates over the business cycle.

9. If the CPI was 132.5 at the end of 2004 and 137.5 at the end of 2005, the inflation rate over these two years was

1.3.6 percent.

2.3.8 percent.

3.5.0 percent.

4.None of the above answers is correct.

10. The technique currently used to find out the CPI implicitly assumes that over time consumers buy

1.relatively more of goods whose relative prices are rising.

2.relatively less of goods whose relative prices are rising.

3.the same relative quantities of goods as in a base year.

4.goods and services whose quality improves at the rate of growth of real income.

11. The supply of real GDP is a function of

1.the total expenditures of consumers, investors and government.

2.the sum of wages, salaries, corporate profits, rents and interest.

3.only the state of technology.

4.the quantities of labor, capital and the state of technology.

12. In short-run macroeconomic equilibrium

1.real GDP equals potential GDP and aggregate demand determines the price level.

2.the price level is fixed and short-run aggregate supply determines real GDP.

3.real GDP and the price level are determined by short-run aggregate supply and aggregate demand.

4.real GDP is less than potential GDP.

13. ____ economists believe that the economy is self-regulating and will be at full employment as long as monetary policy is not errati

1.Keynesian

2.Monetarist

3.Classical

4.All

14. The classical dichotomy applies when the economy only when the economy

1.is at full employment.

2.has less than full employment.

3.is in a recession.

4.has more than full employment.

15. Because the leisure-real GDP production possibilities frontier is bowed outward, then

1.each additional unit of real GDP costs a decreasing amount of forgone leisure.

2.as more real GDP is produced, increasingly more productive labor is being used.

3.the marginal product of labor is increasing as real GDP increases.

4.the slope of the economy's production function decreases as real GDP increases.

16. Suppose there is a rise in the real wage rate. As a result, the quantity of labor demanded

1. increases.

2. decreases.

3. does not change because there is no change in the money wage rate.

4. increases only if the price level also decreases.

17. Convergence of the income gap has been most dramatic between

1.Hong Kong and the United States.

2.the Central European countries and the United States.

3.Africa and the United States.

4.South America and the United States.

18. Which of the following statements regarding human capital is incorrect?

1.Human capital is the accumulated skill and knowledge of human beings.

2.Education is the only vehicle for the creation of human capital because training simply reinforces what has already beenlearned.

3.The accumulation of human capital is the source of both increased productivity and technological advance.

4.Writing and mathematics, the most basic of human skills, are crucial elements in economic progress.

19. If Y = real GDP, and L, K and T represent the quantities of labor,capital and technology respectively, then the most appropriate representation of the aggregate production function is

1.L = F(K, Y, T).

2.Y = F(T, K).

3.Y= F(K, T, L).

4.T = F(Y, T, L).

20. A central proposition of the new growth theory is that

1.growth will cease but prosperity will persist.

2.knowledge is not subject to diminishing returns.

3.government direction and oversight is necessary for consistent growth.

4.growth is often just an illusion fostered by growth accounting.

21. Given the list of assets below, which is the most liquid?

1.$500 worth of General Motors common stock.

2.$500 worth of General Motors bonds.

3.a $500 traveler's check.

4.a one-ounce gold coin.

22. Which of the following statements concerning commercial banks is true?

1.Banks need to maintain cash reserves equal to their deposits.

2.Most banks maintain cash reserves equal to a fraction of deposits.

3.Cash reserves earn the highest rate of return of any asset for a bank.

4.Since the advent of the Federal Reserve, banks do not need to maintain cash reserves.

23. You withdraw $2,000 from your account. Your bank has a desired reserve ratio of 20 percent. This transaction, by itself, will directly reduce

1.the quantity of money by $1,600.

2.deposits by $1,600.

3.the quantity of money by $2,000.

4.deposits by $2,000.

24. Suppose you hold $50 to buy groceries weekly and then the price of groceries increases by 5 percent. To be able to buy the same amount of groceries, what must happen to your nominal money holdings?

1.They must increase by $5.

2.They can decrease by $5.

3.They must increase by $2.50.

4.They must increase, but the amount of the increase is different than the above answers.

25. If the Fed carries out an open market operation and buys U.S. government securities, the interest rate

1.falls and the quantity of money increases.

2.rises and the quantity of money increases.

3.falls and the quantity of money decreases.

4.rises and the quantity of money decreases.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M919829

Have any Question? 


Related Questions in Business Economics

Question 1 for the following situations calculate

Question 1 . For the following situations, calculate elasticity of demand and comment on the answer.                             When the price of commodity X was Rs. 12/-, 40 units it were demanded. When the price decre ...

Assignmentmoral and ethical requirements should serve as

Assignment Moral and ethical requirements should serve as drivers which encourage a business to invest in or spend money on cybersecurity products, services, and programs. You have been invited to participate in a "light ...

1 there is a small country whose domestic demand and supply

1) There is a small country whose domestic demand and supply for a good x are given below (where P is the price of X) [drawing a demand and supply graph may be helpful to you, but is not required.] D: P=100-Q S: P=10+2Q ...

In the united states as in most countries we value the

In the United States, as in most countries, we value the benefits of a free and competitive market. This suggests an interesting question: what if there were to be no Antitrust laws or other regulations on business activ ...

Assessment task descriptiontopicstudents will be required

ASSESSMENT TASK: DESCRIPTION Topic Students will be required to choose a specific enterprise (it should ideally be one with which they are somewhat familiar) and develop a sustainability indicators monitoring system for ...

Chapter 1 managing changeq1 figure 176 shows how bad an

Chapter 1 Managing change Q1 Figure 1.76 shows how bad an implementation can become. Action needs to be taken to prevent this kind of situation. What would you recommend should be done? Q2 You are the project manager for ...

What is the relationship between economy business and

What is the relationship between economy, business, and society? -6 page essay (includes only ONE page for references,but the cover page is not included in the 6 page requirement) -Double spaced -APA format

Assignment -consider the following cobb douglas production

Assignment - Consider the following Cobb Douglas production function where Y is maize output, X 1 is labour input, and X 2 is the capital. Data for estimating this equation is given in the Table below. Y = β 0 X 1i β_1 X ...

Assignmentinstructions1 select an illegal activity and

Assignment Instructions 1. Select an illegal activity and transform/mask its' true purpose with the disguise of a legitimate business operation. In other words, create a start-up business that would be viewed as a legal ...

Allocation and allotments please respond to the following1

"Allocation and Allotments" Please respond to the following: 1. From the first e-Activity, examine and evaluate the disparity of Georgia budget allocation for education and property tax to the various localities. Based o ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro