ECO 372 PAPERS Redefined Education--eco372papers.com

50 %
50 %
Information about ECO 372 PAPERS Redefined Education--eco372papers.com

Published on June 14, 2019

Author: agathachristie251

Source: slideshare.net

1. ECO 372 All Assignments (2 Set) FOR MORE CLASSES VISIT www.eco372papers.com This Tutorial contains 2 Papers/PPT for each Assignment ECO 372 Week 1 Assignment Ten Principles of Economics and the Data of Macroeconomics (2 Papers) ECO 372 Week 2 Assignment The Real Economy in the Long Run (2 Papers) ECO 372 Week 2 Principles of Economics and the Data of Macroeconomics (2 Papers) ECO 372 Week 3 Team Assignment Money and the Prices in the Long Run and Open Economies (2 Papers) ECO 372 Week 4 Team Assignment Short-Run Economic Fluctuations (2 PPT) ECO 372 Week 5 Team Assignment Major Debates over Macroeconomic Policy (2 Papers) ECO 372 Week 1 Individual Assignment Macroeconomic Terms ECO 372 Week 1 Individual Assignment Economic Definitions Worksheet (New) ECO 372 Week 1 Knowledge Check ECO 372 Week 1 Discussion Question 1 ECO 372 Week 1 Discussion Question 2 ECO 372 Week 2 knowledge Check ECO 372 week 2 Team Weekly Reflection Economic Forecasting Paper (2 Papers) ECO 372 Week 2 Discussion Question 1 ECO 372 Week 2 Group Discussion Question ECO 372 Week 2 Individual Assignment Product Purchases and the Economy ECO 372 Week 3 Discussion Question 1 ECO 372 Week 3 Group Discussion Question

2. ECO 372 Week 3 knowledge Check ECO 372 Week 3 Team Assignment Fiscal Policy Paper (New) ECO 372 Week 4 Discussion Question 1 ECO 372 Week 4 Group Discussion Question ECO 372 Week 4 Team Reflection Supply Chain and Demand Model ECO 372 Week 4 Individual Assignment International Economics Paper (New) ECO 372 Week 4 knowledge Check ECO 372 Week 5 Discussion Question 1 ECO 372 Week 5 Discussion Question 2 ECO 372 Week 5 Team Assignment Deficit and Debt Presentation (New) ECO 372 Week 5 knowledge Check ============================================== ECO 372 Apply Week 4 Money and the Federal Reserve Homework (100% Correct) (All Possible Question/Answers) FOR MORE CLASSES VISIT www.eco372papers.com Money is: Use the following table to determine the levels of M1 and M2 in the United States. Money Categories in the United States Asset Amount (billions of dollars) Currency $82 Demand deposits 80 Money market funds 44 Other checkable deposits 37 Savings deposits 460 Small time deposits 22 Traveler's checks 4 The part of the Federal Reserve that determines and implements the nation's monetary policy and controls the money supply to promote stable

3. prices and economic growth is the: a. Sam gives the grocery store clerk a $5 bill to pay for his purchase. b. Bill looks at the $20 price tag on a clock to see how much money he would need to purchase it. c. Maria writes a check to pay her electric bill. d. Susan transfers some of her wealth from her checking account into a certificate of deposit that earns interest. • The Federal Reserve District Banks are divided: The M1 measure of money consists of the sum of The Federal Reserve System consists of which of the following? • Federal Deposit Insurance Corporation and Controller of the Currency Other things being equal, an expansion of commercial bank lending • changes the composition, but not the size, of the money supply. The reason for the Fed being set up as an independent agency of government is to When a consumer wants to compare the price of one product with another, money is primarily functioning as a If the reserve requirement is 20% and commercial bankers decide to hold additional excess reserves equal to 5% of any newly acquired checkable deposits, then the effective monetary multiplier for the banking system will be If you put a $20 bill in the pocket of your winter coat at the beginning of spring so that you will be surprised when you find it again next winter, you are using money as Which definition(s) of the money supply include(s) only items that are directly and immediately usable as a medium of exchange? Money is "created" when The equilibrium rate of interest in the market for money is determined by the intersection of the The Federal Open Market Committee (FOMC) The required-reserve ratio is equal to a commercial bank’s The coupon rate is the Money eliminates the need for a coincidence of wants in trading primarily through its role as a One hundred percent reserve banking refers to a situation in which banks' reserves equal One hundred percent of their Fractional reserve banking

4. refers to a system where banks The functions of money are to serve as a A bank’s net worth is equal to its What function is money serving when you deposit it in a savings account? A wealthy executive is holding money, waiting for a good time to invest in the stock market. This action would be an example of the If product prices were stated in terms of tobacco leaves, then tobacco leaves would be functioning primarily as Which group is responsible for the policy decision of changing the money supply? Cash held by a bank in its vault is a part of the bank’s Assume that the required reserve ratio is 20%. A business deposits a $50,000 check at Bank A; the check is drawn against Bank B. What happens to the reserves at Bank A and Bank B? ============================================== ECO 372 Apply Week 5 Fiscal and Monetary Policy Homework (100% Correct) (All Possible Question/Answers) FOR MORE CLASSES VISIT www.eco372papers.com The existence of lags in designing and implementing fiscal policy helps illustrate some of the limitations of fiscal policy aimed at easing the burdens of a recession. Which of the following statements best describes a situation when fiscal policy is more appropriate? For each of the following scenarios, determine which time lag is most likely to

5. result when designing and implementing fiscal policy. The separation of power demonstrated between the legislative and executive branches of government combined with strong partisanship attitude among our elected politicians. The fact that it takes economists working for the National Bureau of Economic Research months to declare the dates of peaks and troughs. The time it takes to design and build new infrastructure after these projects have been passed by the legislature. A key feature of all automatic stabilizers is that they: Which of the following is an example of built-in stability? As real GDP decreases, The intent of contractionary fiscal policy is to Payments made by the government that do not require an exchange of economic activity in return are also known as The set of fiscal policies that would be most contractionary would be a(n) Using fiscal policy to stabilize the economy is difficult because As the economy declines into recession, the collection of personal income tax revenues automatically falls. This phenomenon best illustrates how a progressive income-tax system If the U.S. Congress passes legislation to raise taxes to control demand- pull inflation, then this would be an example of a(n) One timing problem in using fiscal policy to counter a recession is the "recognition lag" that occurs between the One timing problem in using fiscal policy to counter a recession is the "legislative lag" that occurs between the The time that elapses between the beginning of a recession or an inflationary episode and the identification of the macroeconomic problem is referred to as a(n) When the federal government changes purchases and/or taxes to stimulate the economy or rein in inflation, such policy is . Fiscal policy is enacted through changes in . Fiscal policy is sometimes initiated on the advice of the Which of the following serves as an automatic stabilizer in the economy? If the government

6. wishes to increase the level of real GDP, it might reduce Due to automatic stabilizers, when the nation’s total income rises, government transfer payments If taxes and government expenses did not vary with income, then income would Automatic stabilizers smooth fluctuations in the economy because they produce changes in the government's budget that Fiscal policy is sometimes initiated on the advice of the One timing problem in using fiscal policy to counter a recession is the "implementation lag" that occurs between the The lag between the time that the need for fiscal action is recognized and the time action is actually taken is referred to as the When the federal government uses taxation and purchasing actions to stimulate the economy it is conducting The discount rate is the: If the Fed were to decrease the discount rate, banks will borrow: When the federal funds rate increases, banks make: Which of the monetary policy tools can alter both the level of excess reserves and the money multiplier? Economic investment refers to _____. An increase in the money supply, all else held constant, usually _____ the discount rate is the interest _____ The interest rate at which the Federal Reserve Banks lend to commercial banks is called the _____. The purchase and sale of government securities by the Fed is called _____ The major purpose of the Federal Reserve buying government securities in open market operations is to _ financial markets pay close attention to changes in the federal funds rate because these changes _____. If the Fed buys government securities from commercial banks in the open market _____. A newspaper headline reads: "Fed Cuts Federal Funds Rate for Fifth Time This Year." This headline indicates that the Federal Reserve is most likely trying to _____. The purpose of expansionary monetary policy is to increase _____. The interest rate that the Fed charges on loans made

7. directly to banks is called _____. Traditionally, the Fed often communicated its intentions to restrict or expand monetary policy by announcing a change in its target for the _____. The lending ability of commercial banks increases when the ____ f the Board of Governors of the Federal Reserve System increases the reserve requirement, this change will _____. If the federal funds rate _____. The federal funds rate is the interest rate that _______ charge(s) _______. During the Christmas shopping season, the demand for money increases significantly. To offset the increase in money demand, the Fed must ______ the money supply, which will put ______ pressure on nominal interest rates. Which of the following statements is true? In an effort to stabilize the banking sector and keep banks lending, from October 2008 to September 2009, the Fed _____. Reserves borrowed at the federal funds rate are usually repaid ____ The Fed directly sets _____. When the Federal Reserve Banks decide to buy government bonds from banks and the public, the supply of reserves in the federal funds market The fundamental objective of monetary policy is to assist the economy in achieving a _____. Which of the following statements is true? The graph below depicts an economy where an increase in aggregate demand has caused inflation. The economy's current level of real GDP (Y2) is above its long-run equilibrium. This is illustrated by the long-run aggregate supply curve (LRAS) and a price level (P2) above the equilibrium value of Pe. Which of the following is an example of an automatic stabilizer that would help this economy move toward full employment again? The existence of lags in designing and implementing fiscal policy helps illustrate some of the limitations of fiscal policy aimed at easing the burdens of a recession. Which of the

8. following statements best describes a situation when fiscal policy is more appropriate? ============================================== ECO 372 Assignment Week 1 Apply Output, Income, and Economic Growth Homework (100% Correct) (All Possible Question) FOR MORE CLASSES VISIT www.eco372papers.com ECO 372 Week 1 Apply: Output, Income, and Economic Growth Homework – One Attempt Review the Week 1 Output, Income, and Economic Growth Quiz in preparation for this assignment. Complete the Week 1 Output, Income, and Economic Growth Assignment in McGraw-Hill Connect®. These are randomized questions. Note: You have only one attempt available to complete assignments. Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date. Which of the following scenarios would be included in GDP? Darius unclogs the drain in his sink using the plunger he owns. Sandra is a waitress at Morton’s Steakhouse. She receives a cash tip of $50 that she pockets and does not report. Pam buys a new 40-inch television at Walmart. Miguel won $100 in his office

9. fantasy football league. Which of the following expenditures is an example of a consumer durable good? Marcus buys some new soccer cleats at the sporting goods store. Arti buys a new refrigerator from Sears. Latisha gets a manicure from the nail salon in the mall. Colin buys a large coffee and a donut from Dunkin’ Donuts. The equation for net investment is written as: Net Investment = Nominal GDP – Gross Investment Net Investment = Gross Investment – Depreciation Net Investment = Consumption – Gross Investment Net Investment = Depreciation – Gross Investment Which of the following ly describes GDP using the income approach? GDP = Wages + Rents + Interest + Profits and Losses + National Income GDP = Consumption + Gross Investment + Net Exports + Government Purchases GDP = Wages + Rents + Interest + Profits and Losses GDP = National Income + Indirect Business Taxes + Depreciation + Net Foreign Factor Income The major difference between nominal GDP and real GDP is: nominal GDP measures the value of output with constant output levels, while real GDP measures output using current-year output levels. nominal GDP measures the value of output in constant prices, while real GDP measures output using current-year prices. nominal GDP measures the value of output with current-year output levels, while real GDP measures output using constant output levels. nominal GDP measures the value of output in current-year prices, while real GDP measures output using constant prices. The U.S. produces and sells millions of different products. To aggregate them together into a single measure of domestic output, the quantity of each good produced is weighted by its _____. rev: 04_09_2018 Multiple Choice utility to consumers market price contribution to corporate profits cost of production A nation’s nominal gross domestic product (GDP) _____. rev: 04_09_2018

10. Multiple Choice is the dollar value of all final output produced within the borders of the nation during a specific period of time is the dollar value of all final output produced by its citizens, regardless of where they are living is always some amount less than C + I + G + NX can be found by summing C + I + S + NX Which of the following is not included in gross domestic private investment, as defined in national income accounts? rev: 04_09_2018 Multiple Choice Changes to business inventories The value of all new capital goods bought by business firms Domestic home construction undertaken by and for the private sector Government construction of new highways and dams GDP measured using current prices is called _____ deflated GDP constant GDP real GDP nominal GDP Which of the following is a primary use for national income accounts? rev: 04_09_2018 Multiple Choice To analyze the environmental cost of economic growth To assess the economic efficiency of specific industries in the economy To determine whether there is a fair and equitable distribution of income in the economy To measure changes in the value of production and income in the economy Final goods and services refer to _____. rev: 04_09_2018 Multiple Choice goods and services that are unsold and therefore added to inventories goods and services purchased by ultimate users, rather than for resale or further processing goods and services whose value has been adjusted for changes in the price level the excess of U.S. exports over U.S. imports Nominal GDP differs from real GDP because _____. rev: 04_09_2018 Multiple Choice nominal GDP is based on constant prices nominal GDP results from adjusting for changes in the price level real GDP results from adjusting for changes in the price level real GDP is based on current prices Which of the following is not an example of an intermediate good? rev: 04_09_2018 Multiple Choice an

11. oven bought by a homeowner office supplies bought by an accounting firm gasoline bought by a trucking company flour bought by a bakery In the treatment of U.S. exports and imports, national income accountants _____. rev: 04_09_2018 Multiple Choice subtract exports but add imports in calculating GDP subtract both exports and imports in calculating GDP add both exports and imports in calculating GDP add exports but subtract imports in calculating GDP The value of corporate stocks and bonds traded in a given year is _____. rev: 04_09_2018 Multiple Choice included in the calculation of net private domestic investment excluded from the calculation of GDP because it does not represent new production included in the calculation of GDP because it is a component of gross investment included in the calculation of gross private domestic investment Suppose that real GDP per capita in the United States is $49,000. If the long-term growth rate of real GDP per capita is 1.6% per year, how many years will it take for real GDP per capita to reach $98,000? Instructions: Enter your answer as a whole number. years The table below shows real GDP per capita for the United States between the years 1950–2016. Real GDP per Capita over Time Year Real GDP per Capita (dollars) 1950 $13,819 1975 24,601 2000 43,935 2016 52,172 Instructions: Round your answers to one decimal place. What is the growth rate in the standard of living from 1950 to 1975? What is the growth rate in the standard of living from 1975 to 2000? What is the growth rate in the standard of living from 2000 to 2016? Suppose that Italy can produce either goods or services with its resources, and that its PPF curve is shown on the graph as PPF1. Using the graph, for each of the following situations, determine whether the PPF curve shifts. Suppose that Italy increases its spending on education, which increases the amount of human capital in

12. Italy. Italy’s PPF curve would A recession causes Italy’s unemployment rate to increase above the natural rate of unemployment. Italy’s PPF curve would Italy experiences an influx of immigrants from surrounding countries, which causes the population of Italy to increase. Italy’s PPF curve would Which of the following is a measure of economic growth that is most useful for comparing changes in standards of living? rev: 05_30_2018 Multiple Choice increases in real GDP increases in real GDP per capita growth in nominal GDP decreases in the rate of unemployment The benefits of economic growth are _____, while the costs of economic growth are _____. rev: 05_30_2018 Multiple Choice increased output per person; the consumption sacrificed in exchange for capital formation increased output per person; less future consumption increased output per person; too small for concern more current consumption; less future consumption Use the following production possibilities frontiers to answer the next question. Curve (a) is the current frontier for the economy. Focusing on curve (a), point N suggests that the economy currently produces rev: 05_30_2018 Multiple Choice more goods for the future than at point P. less goods for the present than at point P. less goods for the future than at point P. a combination of output that is less than its potential. The application of new technologies to the production process will increase rev: 05_30_2018 Multiple Choice labor productivity. the share of the population employed. the unemployment rate. the quantity of human capital. Real GDP per capita is found by rev: 05_30_2018 Multiple Choice dividing real GDP by population. subtracting population from real GDP. dividing population by real GDP. adding real GDP and population. Human capital is rev: 05_30_2018 Multiple Choice the financial resources available to humans for investment. the talents,

13. training, and education of workers. the factories and machinery used by humans in the production process. the factories and machinery made by workers. To increase future living standards by pursuing higher current rates of investment spending, an economy must rev: 05_30_2018 Multiple Choice reduce the current capital stock. allow higher rates of current consumption. reduce current rates of consumption spending. decrease the amount of future research and development spending. Which of the following is a measure of economic growth that is most useful for measuring changes in the overall size of an economy? rev: 05_30_2018 Multiple Choice decreases in the rate of unemployment increases in real GDP increases in real GDP per capita growth in nominal GDP Human capital refers to the rev: 05_30_2018 Multiple Choice amount of financing available to start-up firms. tools and equipment available to workers. education, training, and skills of workers. number of workers available in the economy. Economic growth can best be portrayed as a(n) rev: 05_30_2018 Multiple Choic outward shift of the production possibilities frontier. movement from a point inside to a point outside of the production possibilities frontier. inward shift of the production possibilities frontier. movement from a point near the vertical axis to a point near the horizontal axis on the production possibilities frontier. The cost of a higher living standard in the future is giving up rev: 05_30_2018 Multiple Choice current consumption. current investment. future consumption. future investment. The principle of diminishing returns to capital states that if the amount of labor and other inputs employed is held constant, then the greater the amount of capital in use the rev: 05_30_2018 Multiple Choice the less an additional unit of capital adds

14. to production. less is produced. the more an additional unit of capital adds to production. less production is wasted. ============================================== ECO 372 Assignment Week 1 Practice Output, Income, and Economic Growth Quiz (100% Correct) (All Possible Question) FOR MORE CLASSES VISIT www.eco372papers.com ECO 372 Week 1 Practice: Output, Income, and Economic Growth Quiz Complete the Week 1 Output, Income, and Economic Growth Quiz in McGraw-Hill Connect®by Day 5. These are randomized questions. Which of the following ly describes GDP using the income approach?GDP = Consumption + Gross Investment + Net Exports + Government PurchasesGDP = Wages + Rents + Interest + Profits and Losses GDP = National Income + Indirect Business Taxes + Depreciation + Net Foreign Factor Income GDP = Wages + Rents + Interest + Profits and Losses + National Income Which of the following statements ly explains exports versus net exports? Exports are goods, services, or resources produced domestically and sold abroad, while net exports are equal to exports minus imports. Exports are goods, services, or

15. resources produced domestically and sold abroad, while net exports are equal to imports minus exports. Exports are goods, services, or resources produced abroad and sold domestically, while net exports are equal to exports minus imports. Exports are goods, services, or resources produced abroad and sold domestically, while net exports are equal to imports minus exports. The major difference between nominal GDP and real GDP is: nominal GDP measures the value of output with current-year output levels, while real GDP measures output using constant output levels. nominal GDP measures the value of output with constant output levels, while real GDP measures output using current-year output levels. nominal GDP measures the value of output in current-year prices, while real GDP measures output using constant prices. nominal GDP measures the value of output in constant prices, while real GDP measures output using current-year prices. Determine whether each of the following examples would be included in Gross Domestic Product (GDP). When Judy went to the grocery store yesterday, she bought three pounds of potatoes. Judy’s purchase of potatoes 1. Ford Motor Company buys four tires to put on a new Ford Mustang. The purchase of the tires 1. The U.S. Air Force purchases two new fighter jets from Boeing. The purchase of the two fighter jets 1. When Joey had his birthday last week, his grandmother sent him a $100 bill that he could spend. Joey’s birthday gift of $100 Henry and his girlfriend ate dinner at the new Thai restaurant that recently opened in his neighborhood. This expenditure would be included in: consumer durables. services. government purchases. consumer nondurables. The equation for net investment is written as: Net Investment = Nominal GDP – Gross Investment Net Investment = Gross Investment – Depreciation Net Investment = Depreciation – Gross Investment Net

16. Investment = Consumption – Gross Investment Which of the following measures is most often used to compare the standards of living in different countries? rev: 04_09_2018 Multiple Choice daily per capita calorie supply per capita income life expectancy at birth per capita energy consumption GDP tends to overstate economic well-being because it takes into account _____. rev: 04_09_2018 Multiple Choice expenditures undertaken topollution illegal activities of individuals and businesses nonmarket activities, such as the productive work of homemakers improvements in product quality over time One common measure of the “standard of living” in a nation is _____. rev: 04_09_2018 Multiple Choice real GDP per capita population size real GDP the unemployment rate What are net exports? rev: 04_09_2018 Multiple Choice That portion of consumption and investment goods sent to other countries Exports minus imports Exports plus imports Imports minus exports The U.S. produces and sells millions of different products. To aggregate them together into a single measure of domestic output, the quantity of each good produced is weighted by its _____. rev: 04_09_2018 Multiple Choice cost of production contribution to corporate profits utility to consumers market price “Net foreign factor income” in the national income accounts refers to the difference between the _____. rev: 04_09_2018 Multiple Choice income Americans gain from supplying resources abroad and the income that foreigners earn by supplying resources in the U.S. income earned by Americans in the U.S. minus the income earned by foreigners in the U.S. value of investments that Americans made abroad and the value of investments made by foreigners in the U.S. value of products sold by Americans to other nations and the value of products bought by Americans from other nations. A nation’s nominal gross domestic

17. product (GDP) _____. rev: 04_09_2018 Multiple Choice is the dollar value of all final output produced by its citizens, regardless of where they are living is always some amount less than C + I + G + NX can be found by summing C + I + S + NX is the dollar value of all final output produced within the borders of the nation during a specific period of time The value of corporate stocks and bonds traded in a given year is _____. rev: 04_09_2018 Multiple Choice excluded from the calculation of GDP because it does not represent new production included in the calculation of GDP because it is a component of gross investment included in the calculation of net private domestic investment included in the calculation of gross private domestic investment Government purchases include spending on _____. rev: 04_09_2018 Multiple Choice government purchases of final goods and government salaries government salaries only government purchases of final goods only government purchases of final goods, government salaries, and transfer payments Which of the following is included in GDP? rev: 04_09_2018 Multiple Choice The value of an existing house sold during a year The value of a haircut The value of the steel and aluminum used to produce a new car The value of a homemaker’s services In the treatment of U.S. exports and imports, national income accountants _____. rev: 04_09_2018 Multiple Choice subtract both exports and imports in calculating GDP subtract exports but add imports in calculating GDP add exports but subtract imports in calculating GDP add both exports and imports in calculating GDP Which of the following is not included in the sum of national income? rev: 04_09_2018 Multiple Choice Rent Profits and losses Depreciation or consumption of fixed capital Interest The sale of a used automobile would not be included in GDP of the current year because it is _____. rev: 04_09_2018 Multiple Choice not a

18. market transaction a private transfer payment not current production a purely financial transaction GDP measured using current prices is called _____. rev: 04_09_2018 Multiple Choice real GDP deflated GDP nominal GDP constant GDP Answer the next question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year. Year Units of Output Price per Unit 1 8 $2 2 10 3 3 15 4 4 18 5 5 20 6 In year 4, nominal GDP would be _____. rev: 04_09_2018 Multiple Choice $90 $120 $316 $60 In calculating GDP, governmental transfer payments, such as Social Security or unemployment compensation, are _____. rev: 04_09_2018 Multiple Choice counted as investment spending. counted as consumption spending. not counted. counted as government spending. If real GDP declines in a given year, nominal GDP _____. rev: 04_09_2018 Multiple Choice may either rise or fall is likely to remain constant must also be declining must also be increasing The broadest measure to adjust Nominal GDP for price changes is _____. rev: 04_09_2018 Multiple Choice the Consumer Price Index (CPI) the Producer Price Index (PPI) the GDP price index exchange rates Which of the following is included in the expenditures approach to GDP? rev: 04_09_2018 Multiple Choice The value of stocks and bonds bought by businessmen Spending on meals by consumers at restaurants Spending on used clothing at garage sales Government spending on welfare payments GDP can be calculated by summing _____. rev: 04_09_2018 Multiple Choice consumption, investment, government purchases, exports, and imports consumption, investment, government purchases, and net exports consumption, investment, wages, and rents consumption, investment, government purchases, and imports What are the two ways of looking

19. at GDP? rev: 04_09_2018 Multiple Choice Income approach and saving approach Output approach and consumption approach Expenditures approach and income approach Output approach and expenditures approach What do government purchases include in national income accounting? rev: 04_09_2018 Multiple Choice Purchases by the federal government only Government transfer payments Purchases by federal, state, and local governments Purchases of goods for consumption but not public capital goods Net exports is a positive number when a nation _____. rev: 04_09_2018 Multiple Choice simply exports goods and services to other nations exports fewer goods and services than it imports increases its exports of goods and services exports more goods and services than it imports Nominal GDP is _____. rev: 04_09_2018 Multiple Choice money GDP adjusted for inflation the sum of all monetary transactions that occur in the economy in a year the sum of all monetary transactions involving final goods and services that occur in the economy in a year the amount of production that occurs when the economy is operating at full employment Which of the following statements about economic growth is accurate? The world’s sustained economic growth has only been occurring over the last 300 to 400 years. Countries in Africa and South America are responsible for most of the economic growth in the world since the 1600s. Economic growth has been shared equally among all the countries in the world since the start of the most recent generation. Sustained economic growth has been occurring since the start of the Roman Empire. Suppose that real GDP per capita in the United States is $49,000. If the long-term growth rate of real GDP per capita is 1.6% per year, how many years will it take for real GDP per capita to reach $98,000? Instructions: Enter your answer as a whole number. years Suppose that Italy can produce either

20. goods or services with its resources, and that its PPF curve is shown on the graph as PPF1. Using the graph, for each of the following situations, determine whether the PPF curve shifts. Suppose that Italy increases its spending on education, which increases the amount of human capital in Italy. Italy’s PPF curve would A recession causes Italy’s unemployment rate to increase above the natural rate of unemployment. Italy’s PPF curve would Italy experiences an influx of immigrants from surrounding countries, which causes the population of Italy to increase. Italy’s PPF curve would Which of the following is a measure of economic growth that is most useful for measuring changes in the overall size of an economy? rev: 05_30_2018 Multiple Choice increases in real GDP per capita decreases in the rate of unemployment increases in real GDP growth in nominal GDP Human capital refers to the rev: 05_30_2018 Multiple Choice amount of financing available to start-up firms. number of workers available in the economy. tools and equipment available to workers. education, training, and skills of workers. The number of years required for real GDP to double can be found by rev: 05_30_2018 Multiple Choice dividing the annual growth rate by .072. multiplying the annual growth rate by 72. dividing 72 by the annual growth rate. adding 72 to annual growth rate. Before the Industrial Revolution, living standards in the world rev: 05_30_2018 Multiple Choice were declining because of rapid increases in population. are not known, for lack of reliable records from that period. were already rising significantly for many decades. were relatively stagnant for long periods of time. Which of the following will not increase a nation’s real GDP? rev: 05_30_2018 Multiple Choice technological progress average price level number of workers labor productivity If labor becomes more productive, the production possibilities frontier will rev: 05_30_2018 Multiple Choice

21. remain constant, but output will increase as unemployment falls. shift to inward, toward the origin. shift to outward away from the origin. remain constant, but output will fall as less labor is needed to produce the same level of output. Alpha has $40,000 of capital per worker, while Beta has $5,000 of capital per worker. In all other respects, the two countries are the same. According to the principle of diminishing returns to capital, an additional unit of capital will ______ in Alpha compared to Beta, holding other factors constant. rev: 05_30_2018 Multiple Choice increase output by the same amount have no effect on output increase output more increase output less Use the following diagram to answer the next question. The most likely cause for a shift in the production possibilities frontier from AB to CD is rev: 05_30_2018 Multiple Choice the use of the economy’s resources in a less efficient way. an increase in government purchase of the economy’s output. an increase in the quantity and quality of labor resources. an increase in the spending of business and consumers. Human capital is rev: 05_30_2018 Multiple Choice the talents, training, and education of workers. the factories and machinery made by workers. the financial resources available to humans for investment. the factories and machinery used by humans in the production process. The principle of diminishing returns to capital states that if the amount of labor and other inputs employed is held constant, then the greater the amount of capital in use the rev: 05_30_2018 Multiple Choice less is produced. less production is wasted. the more an additional unit of capital adds to production. the less an additional unit of capital adds to production. Real GDP per capita is found by rev: 05_30_2018 Multiple Choice subtracting population from real GDP. adding real GDP and population. dividing real GDP by population. dividing population by real GDP.

22. Between the U.S. and Nepal, Nepal invests less in new factories and equipment. This will likely cause rev: 05_30_2018 Multiple Choice Nepal’s production possibilities frontier to shift inward faster than the U.S’s. the U.S.’s production possibilities frontier to shift outward faster than Nepal’s. the U.S.’s production possibilities frontier to shift inward faster than Nepal’s. Nepal’s production possibilities frontier to shift outward faster than the U.S.’s. Most economists agree that ______ are the single most important source of economic growth. rev: 05_30_2018 Multiple Choice technological advances increases in physical capital increases in human capital discoveries of natural resources Providing a constant number of workers with additional capital with which to work will ______ labor productivity at a(n) ______ rate. rev: 05_30_2018 Multiple Choice increase; increasing decrease; decreasing increase; constant increase; decreasing The cost of a higher living standard in the future is giving up rev: 05_30_2018 Multiple Choice current investment. future consumption. future investment. current consumption. Use the following diagram to answer the next question. If CD is the economy’s current production possibilities frontier, what is the most likely reason for operating at point X? rev: 05_30_2018 Multiple Choice increases in the quantity and the quality of resources unemployment and inefficient allocation of resources technological progress and industrial change improvement in labor productivity and the number of work-hours Increasing the capital available to the workforce, holding other factors constant, tends to ______ total output while ______ labor productivity. rev: 05_30_2018 Multiple Choice increase; not changing decrease; increasing increase; decreasing increase; increasing ==============================================

23. ECO 372 Assignment Week 2 Apply Business Cycles, Unemployment, and Inflation Homework (100% Correct) (All Possible Question) FOR MORE CLASSES VISIT www.eco372papers.com ECO 372 Week 2 Apply: Business Cycles, Unemployment, and Inflation Homework – One Attempt Review the Week 2 Business Cycles, Unemployment, and Inflation Quiz in preparation for this assignment. Complete the Week 2 Business Cycles, Unemployment, and Inflation Assignment in McGraw-Hill Connect®. These are randomized questions. Note: You have only one attempt available to complete the assignment. Grades must be transferred manually to eCampus by your instructor. Don’t worry, this might happen after your due date. For each of the following items, indicate to which major group of the CPI the item belongs: 1.Tuition payments to your university: 2.A new desk for your dorm room or apartment: 3. An airline ticket to Florida to be used during spring break: 4. A 12-pack of beer to be used during spring break: 5. Tickets to a local concert: 6. A late night visit to the emergency room: In each of the following examples, identify whether the person is counted in the official labor force or not. 1. Cynthia owns and operates her own retail store. Elder has recently moved to a retirement community in Florida where he enjoys his “golden years” as a retiree. 1. Drew lost his job at the bank last year. He spent 6

24. months applying for every job possible before giving up 2 months ago. 1. Katherine works part-time at a small retail store. She would like to work full-time, but her employer is unable to extend her hours. 1. Latisha is an ambitious 15-year-old who spends her summer working as a lifeguard at a local pool. 1. Bill is currently serving a prison sentence, and works making license plates. 1. Tyrell just graduated college with a business degree. He is currently looking for a banking job in the major city he just moved to. 1. John and his wife just had their second child. They decided that it was best for John to leave his job and care for their new child. In each of the following examples, identify whether the individual is experiencing cyclical unemployment, frictional unemployment, structural unemployment, or no unemployment. 1. Eduardo has recently moved to a new city with his wife who was offered a great job there. He is trying to find a position in the same industry he worked in before relocating. 1. Derek worked for a large telecommunications firm that went bankrupt last year due to a recent recession. He has since tried to find work with one of the firm’s competitors, but good jobs are currently hard to come by. 1. Drew lost his job at a car manufacturer last year. He spent 6 months applying for every job possible before giving up 2 months ago. He now spends his day playing Xbox. 1. Paula has 20 years of experience in manufacturing. Her employer, and many other manufacturing firms, recently closed their U.S. plants. She would like to find a similar job but is unable to find anything that utilizes her skills. 1. Katherine works part-time at a small retail store. She would like to work full-time, but her employer is currently unable to extend her hours. 2. Tyrell just graduated from college with a business degree. He is currently looking for a job in banking in the major city he just

25. moved to. 1. Mike is a contractor who has been unable to find work, since most businesses are delaying or canceling their construction plans due to economic uncertainty in the coming year. 1. Meg used to own and run her own bookstore. Her sales declined due to competition from online retailers. She has not been able to find any work related to her skills in the diminishing retail industry for books. Historical data show that during the recession of 1990–1991, the natural rate of unemployment was about 5.9% while the actual unemployment rate was 7.0%. A decade later, during the 2001 recession, the natural rate of unemployment fell to 4.8% while actual unemployment was 6.0%. Using this information, which of the following statements isregarding these two short recessions? The actual unemployment rate was higher during the recession of 1990−1991, while cyclical unemployment was higher in 2001. Both the actual unemployment rate and cyclical unemployment were higher during the recession of 1990−1991. Both the actual unemployment rate and cyclical unemployment were higher during the 2001 recession. The actual unemployment rate was higher in 2001, while cyclical unemployment was higher from 1990−1991. The recurrent ups and downs in the level of economic activity extending over several years are referred to as rev: 05_30_2018 Multiple Choice noncyclical fluctuations. business cycles. economic phases. business startups. In the expansion phase of a business cycle rev: 05_30_2018 Multiple Choice employment and output increase. employment increases, but output decreases. the inflation rate and productive capacity decrease. the inflation rate decreases, but productive capacity increases. A mismatch between the geographic location of workers and the location of job openings would result in which type of unemployment? rev: 05_30_2018 Multiple Choice cyclical frictional

26. wait structural According to the Bureau of Labor Statistics, to be officially unemployed a person must rev: 05_30_2018 Multiple Choice be in the labor force. be waiting to be called back from a layoff. be 21 years of age or older. have lost a job. The labor force includes rev: 05_30_2018 Multiple Choice permanent employees but excludes temporary employees. full-time workers but excludes part-time workers. employed workers and persons who are officially unemployed. employed workers but excludes persons who are officially unemployed. The unemployment rate of full-employment is also called the rev: 05_30_2018 Multiple Choice potential rate of unemployment. frictional rate of unemployment. cyclical rate of unemployment. natural rate of unemployment. In calculating the unemployment rate, part- time workers are rev: 05_30_2018 Multiple Choice treated the same as “discouraged” workers who are not actively seeking employment. used to determine the size of the labor force, but not the unemployment rate. counted as employed because they are receiving payment for work. counted as unemployed because they are not working full-time. Wait unemployment and search unemployment are both types of rev: 05_30_2018 Multiple Choice structural unemployment. cyclical unemployment. frictional unemployment. hidden unemployment. Use the table below to answer the next question. Year Employed Structural Frictional Cyclical Unemployed 2003 1,800 50 100 50 200 2004 2,400 100 100 300 2005 2,000 150 180 500 2006 2,660 40 0 140 Determine the number of people frictionally unemployed for the year 2006. rev: 05_30_2018 Multiple Choice 0 100 200 -100 Unemployment that occurs when there is deficient demand for the goods and services of an economy is called rev: 05_30_2018 Multiple Choice natural

27. unemployment. frictional unemployment. structural unemployment. cyclical unemployment. In the United States, business cycles have occurred against a backdrop of a long-run trend of rev: 05_30_2018 Multiple Choice stagnant productivity growth. declining unemployment. rising real GDP. rising inflation. Which of the following is theway to calculate the unemployment rate? rev: 05_30_2018 Multiple Choice (unemployed/labor force) x 100 (labor force/population) x 100 (labor force/unemployed) x 100 (unemployed/population) x 100 Search and wait unemployment is another way to describe rev: 05_30_2018 Multiple Choice frictional unemployment. noncyclical unemployment. structural unemployment. cyclical unemployment. Which of the following statements is true about causes of business cycle fluctuations? rev: 05_30_2018 Multiple Choice There are a wide range of theories as to the underlying causes of business cycle movements. Economists all agree that productivity shocks are the cause of most business cycle changes. Economists all agree that monetary changes are primarily responsible for business cycle fluctuations. Economists all agree that supply shocks are the cause of most business cycle fluctuations. Use the table below to answer the next question. Year Employed Structural Frictional Cyclical Unemployed 2003 1,800 50 100 50 200 2004 2,400 100 100 300 2005 2,000 150 180 500 2006 2,660 40 0 140 Determine the number of people structurally unemployed for the year 2005. rev: 05_30_2018 Multiple Choice 0 170 220 150 “Full employment” refers to the situation when there is rev: 05_30_2018 Multiple Choice no cyclical unemployment. no frictional or structural unemployment. 100% employment of the labor force. a 0% unemployment rate. What is an advantage of mild inflation

28. according to some economists? Multiple Choice It helps to close the GDP gap. It reduces the inflation premium. It makes it easier for firms to adjust real wages downward as demand for their products falls. It reduces frictional, structural, and cyclical unemployment in the economy to make the economy more productive. The inflation rate measures the percentage growth rate of Multiple Choice the CPI from the base period 1982-84 to a given year. the CPI from one year to the next. real GDP from the base period 1982-84 to a given year. real GDP from one year to the next. Inflation that occurs when total spending is greater than the economy’s ability to produce output at the existing price level is rev: 05_02_2017_QC_CS-84894 Multiple Choice cost-push inflation. unexpected inflation. demand-pull inflation. expected inflation. The CPI compiled by the Bureau of Labor Statistics is used in the computations for the Multiple Choice interest rate. foreign exchange rate. inflation rate. unemployment rate. Which of the following groups has traditionally benefited from unexpected inflation? rev: 05_02_2017_QC_CS-84894 Multiple Choice federal government foreign sector consumers business firms What is the main problem with mild inflation according to some economists? rev: 05_02_2017_QC_CS- 84894 Multiple Choice It diverts productive time towards activities to hedge against inflation. It increases frictional and structural unemployment in the economy. It reduces the size of the GDP gap. It leads to unexpected deflation. Core inflation refers to the inflation picture after stripping away the Multiple Choice capital goods prices. service-sector prices. food and energy prices. government-regulated prices. Unexpected inflation arbitrarily rev: 05_02_2017_QC_CS-84894 Multiple Choice “benefits” those who save money. “taxes” those who receive fixed money incomes. “subsidizes” those who receive fixed

29. money incomes. “penalizes” those who borrow money. Inflation caused by an increase in aggregate spending is referred to as rev: 05_02_2017_QC_CS-84894 Multiple Choice demand-pull inflation. cost- push inflation. expected inflation. hyperinflation. Inflation is a rise in Multiple Choice real GDP over time. the general level of prices over time. unemployment over time. the standard of living over time. ============================================== ECO 372 Assignment Week 2 Practice Business Cycles, Unemployment, and Inflation Quiz (100% Correct) (All Possible Question) FOR MORE CLASSES VISIT www.eco372papers.com ECO 372 Week 2 Practice: Business Cycles, Unemployment, and Inflation Quiz Complete the Week 2 Business Cycles, Unemployment, and Inflation Quiz In each of the following examples, identify whether the individual is experiencing cyclical unemployment, frictional unemployment, structural unemployment, or no unemployment. Eduardo has recently moved to a new city with his wife who was offered a great job there. He is trying to find a position in the same industry he worked in before relocating. Derek worked for a large

30. telecommunications firm that went bankrupt last year due to a recent recession. He has since tried to find work with one of the firm’s competitors, but good jobs are currently hard to come by. Drew lost his job at a car manufacturer last year. He spent 6 months applying for every job possible before giving up 2 months ago. He now spends his day playing Xbox. Paula has 20 years of experience in manufacturing. Her employer, and many other manufacturing firms, recently closed their U.S. plants. She would like to find a similar job but is unable to find anything that utilizes her skills. Katherine works part-time at a small retail store. She would like to work full-time, but her employer is currently unable to extend her hours. Tyrell just graduated from college with a business degree. He is currently looking for a job in banking in the major city he just moved to. Mike is a contractor who has been unable to find work, since most businesses are delaying or canceling their construction plans due to economic uncertainty in the coming year. Meg used to own and run her own bookstore. Her sales declined due to competition from online retailers. She has not been able to find any work related to her skills in the diminishing retail industry for books. For each of the following items, indicate to which major group of the CPI the item belongs: Tuition payments to your university: A new desk for your dorm room or apartment: An airline ticket to Florida to be used during spring break: A 12-pack of beer to be used during spring break: Tickets to a local concert: A late night visit to the emergency room: Suppose Marcus eats nothing but burritos for dinner. He buys 30 burritos each month. During the last couple of weeks, Marcus noticed an increase in the price of burritos. The price of burritos rose from $5.50 per burrito last month to $6.60 per burrito this month. Assume that Marcus has a fixed income of $165 that he can spend on burritos.

31. How many burritos can Marcus afford to buy at the new price of $6.60? Instructions: Enter your answer as a whole number. Burritos In each of the following examples, identify whether the person is counted in the official labor force or not. Cynthia owns and operates her own retail store. Elder has recently moved to a retirement community in Florida where he enjoys his “golden years” as a retiree. Drew lost his job at the bank last year. He spent 6 months applying for every job possible before giving up 2 months ago. Katherine works part-time at a small retail store. She would like to work full-time, but her employer is unable to extend her hours. Latisha is an ambitious 15-year-old who spends her summer working as a lifeguard at a local pool. Bill is currently serving a prison sentence, and works making license plates. Tyrell just graduated college with a business degree. He is currently looking for a banking job in the major city he just moved to. John and his wife just had their second child. They decided that it was best for John to leave his job and care for their new child. Using the graph below, identify the different stages of the business cycle. Assume that A, B, and C represent consecutive years. A time period when the economy is growing toward full employment is known as It is depicted in the graph as A time period characterized by full or near-full employment is known as It is depicted in the graph as A time period with two consecutive quarters of declining output is known as It is depicted in the graph as A time period when employment and real output are at their lowest levels is known as It is depicted in the graph as Historical data show that during the recession of 1990–1991, the natural rate of unemployment was about 5.9% while the actual unemployment rate was 7.0%. A decade later, during the 2001 recession, the natural rate of unemployment fell to 4.8% while actual

32. unemployment was 6.0%. Using this information, which of the following statements isregarding these two short recessions? Both the actual unemployment rate and cyclical unemployment were higher during the 2001 recession. Both the actual unemployment rate and cyclical unemployment were higher during the recession of 1990−1991. The actual unemployment rate was higher during the recession of 1990−1991, while cyclical unemployment was higher in 2001. The actual unemployment rate was higher in 2001, while cyclical unemployment was higher from 1990−1991. The natural rate of unemployment rev: 05_30_2018 Multiple Choice means that the economy will always operate at that rate. is a fixed unemployment rate that does not change over time. means that the economy will always realize its potential output. is equal to the total of frictional and structural unemployment. Use the following diagram to answer the next question. The diagram illustrates the pattern of rev: 05_30_2018 Multiple Choice economic growth patterns. business cycles. wage movements over time. price level movements. Full employment” refers to the situation when there is rev: 05_30_2018 Multiple Choice 100% employment of the labor force. no cyclical unemployment. no frictional or structural unemployment. a 0% unemployment rate. The unemployment rate is interpreted as the percentage of the rev: 05_30_2018 Multiple Choice able-bodied population who are not working. adult population who are unemployed. workforce that have been laid off. labor force that are not employed. A recession is a decline in rev: 05_30_2018 Multiple Choice the inflation rate that lasts six months or longer. the unemployment rate that lasts six months or longer. real GDP that lasts six months or longer. potential GDP that lasts six months or longer. The rate of unemployment when the economy is

33. fully employed is called the rev: 05_30_2018 Multiple Choice frictional rate of unemployment. structural rate of unemployment. full- employment rate of unemployment. natural rate of unemployment. Use the table below to answer the next question. Year Employed Structural Frictional Cyclical Unemployed 2003 1,800 50 100 50 200 2004 2,400 100 100 300 2005 2,000 150 180 500 2006 2,660 40 0 140 Determine the number of people cyclically unemployed for the year 2004. rev: 05_30_2018 Multiple Choice -100 100 0 200 Use the table below to answer the next question. Year Employed Structural Frictional Cyclical Unemployed 2003 1,800 50 100 50 200 2004 2,400 100 100 300 2005 2,000 150 180 500 2006 2,660 40 0 140 Determine the number of people frictionally unemployed for the year 2006. rev: 05_30_2018 Multiple Choice 100 0 200 -100 A mismatch between the geographic location of workers and the location of job openings would result in which type of unemployment? rev: 05_30_2018 Multiple Choice cyclical structural wait frictional Unemployment that occurs when there is deficient demand for the goods and services of an economy is called rev: 05_30_2018 Multiple Choice cyclical unemployment. structural unemployment. frictional unemployment. natural unemployment. A peak in the business cycle rev: 05_30_2018 Multiple Choice occurs when the unemployment rate is its greatest. is a temporary maximum point. is a temporary minimum point. occurs when the inflation rate is its lowest. Which of the following is theway to calculate the unemployment rate? rev: 05_30_2018 Multiple Choice (labor force/unemployed) x 100 (unemployed/labor force) x 100 (labor force/population) x 100 (unemployed/population) x 100 The Great

34. Recession that started in 2007 was triggered by shocks in which of the following economic sectors? rev: 05_30_2018 Multiple Choice consumer and government spending international trade and foreign exchange markets real estate and financial markets gold market and stock market In the expansion phase of a business cycle rev: 05_30_2018 Multiple Choice employment and output increase. the inflation rate and productive capacity decrease. the inflation rate decreases, but productive capacity increases. employment increases, but output decreases. In calculating the unemployment rate, part-time workers are rev: 05_30_2018 Multiple Choice treated the same as “discouraged” workers who are not actively seeking employment. counted as employed because they are receiving payment for work. counted as unemployed because they are not working full-time. used to determine the size of the labor force, but not the unemployment rate. The labor force includes rev: 05_30_2018 Multiple Choice permanent employees but excludes temporary employees. employed workers but excludes persons who are officially unemployed. full-time workers but excludes part-time workers. employed workers and persons who are officially unemployed. Wait unemployment and search unemployment are both types of rev: 05_30_2018 Multiple Choice frictional unemployment. cyclical unemployment. hidden unemployment. structural unemployment.Use the table below to answer the next question. Year Employed Structural Frictional Cyclical Unemployed 2003 1,800 50 100 50 200 2004 2,400 100 100 300 2005 2,000 150 180 500 2006 2,660 40 0 140 Determine the number of people structurally unemployed for the year 2005. rev: 05_30_2018 Multiple Choice 220 170 0 150 Which of the following statements is true about

35. causes of business cycle fluctuations? rev: 05_30_2018 Multiple Choice Economists all agree that monetary changes are primarily responsible for business cycle fluctuations. There are a wide range of theories as to the underlying causes of business cycle movements. Economists all agree that productivity shocks are the cause of most business cycle changes. Economists all agree that supply shocks are the cause of most business cycle fluctuations. In the United States, business cycles have occurred against a backdrop of a long-run trend of rev: 05_30_2018 Multiple Choice stagnant productivity growth. rising real GDP. rising inflation. declining unemployment. The unemployment rate of full- employment is also called the rev: 05_30_2018 Multiple Choice cyclical rate of unemployment. natural rate of unemployment. potential rate of unemployment. frictional rate of unemployment. According to the Bureau of Labor Statistics, to be officially unemployed a person must rev: 05_30_2018 Multiple Choice be 21 years of age or older. be in the labor force. be waiting to be called back from a layoff. have lost a job. The recurrent ups and downs in the level of economic activity extending over several years are referred to as rev: 05_30_2018 Multiple Choice business cycles. economic phases. business startups. noncyclical fluctuations. In calculating the unemployment rate, “discouraged” workers who are not actively seeking employment are rev: 05_30_2018 Multiple Choice included as part of the unemployed. excluded from the labor force. used to determine the size of the labor force. treated the same as part-time workers.The unemployed are those people who rev: 05_30_2018 Multiple Choice are not employed but are seeking work. are not working. do not have jobs. are not in the workforce. The GDP gap measures the amount by which rev: 11_14_2016_QC_CS-69055 Multiple Choice nominal GDP exceeds real

36. GDP. actual GDP exceeds equilibrium GDP. potential GDP differs from actual GDP. actual GDP exceeds national income. Use the following diagram to answer the next question. The straight line E drawn through the wavy lines would provide an estimate of the rev: 05_30_2018 Multiple Choice recession fluctuation. recovery trend. natural rate of unemployment. economic growth trend. Which of the following groups declares the start and end of recessions in the U.S.? rev: 05_30_2018 Multiple Choice The Business Cycle Dating Committee of the National Bureau of Economic Research. The Business Cycle Monitoring Committee of the Federal Reserve System. The Business Cycle Tracking Agency of the Department of Commerce. The Committee on Business Cycles of the Council of Economic Advisers. A trough in the business cycle occurs when rev: 05_30_2018 Multiple Choice the inflation rate is at its lowest level. employment and output reach their lowest levels. cyclical unemployment is at a minimum point. the natural rate of unemployment is at a minimum point. Search and wait unemployment is another way to describe rev: 05_30_2018 Multiple Choice structural unemployment. noncyclical unemployment. frictional unemployment. cyclical unemployment. Unexpected inflation arbitrarily rev: 05_02_2017_QC_CS-84894 Multiple Choice “penalizes” those who borrow money. “taxes” those who receive fixed money incomes. “benefits” those who save money. “subsidizes” those who receive fixed money incomes. The CPI compiled by the Bureau of Labor Statistics is used in the computations for the Multiple Choice interest rate. unemployment rate. inflation rate. foreign exchange rate. What is an advantage of mild inflation according to some economists? Multiple Choice It reduces the inflation premium. It reduces frictional, structural, and cyclical unemployment in the economy to make the economy more

37. productive. It makes it easier for firms to adjust real wages downward as demand for their products falls. It helps to close the GDP gap. Core inflation refers to the inflation picture after stripping away the Multiple Choice government-regulated prices. service-sector prices. capital goods prices. food and energy prices Which of the following groups has traditionally benefited from unexpected inflation? rev: 05_02_2017_QC_CS-84894 Multiple Choice federal government foreign sector consumers business firms Which of the following measures the changes in the prices of a “market basket” of some 300 goods and services purchased by typical urban consumers? Multiple Choice the Consumer Price Index the GDP Price Index the Wholesale Price Index the Retail Trade survey Inflation caused by an increase in aggregate spending is referred to as rev: 05_02_2017_QC_CS-84894 Multiple Choice demand-pull inflation. cost-push inflation. hyperinflation. expected inflation. Inflation caused by a rise in the prices of inputs is referred to as rev: 05_02_2017_QC_CS-84894 Multiple Choice hyperinflation. demand-pull inflation. unexpected inflation. cost-push inflation. The inflation rate measures the percentage growth rate of Multiple Choice the CPI from one year to the next. real GDP from one year to the next. the CPI from the base period 1982-84 to a given year. real GDP from the base period 1982-84 to a given year. Inflation is a rise in Multiple Choice the general level of prices over time. the standard of living over time. real GDP over time. unemployment over time. In an economy, the total expenditures for a market basket of goods in year 1 (the base year) was $5,000 billion. In year 2, the total expenditure for the same market basket of goods was $5,500 billion. Wha

Add a comment