Macroeconomics Questions

The value, at current market prices, of the final goods and services produced during a particular period is:

In the long run, a country's material standard of living is determined by:

A sustained period of rising real GDP is called a(n):

Suppose the economy's price level is 2 and real GDP is 30,000 for the year. Suppose the money supply is 5,000. If the money market is in equilibrium, then how many times per year is the typical dollar bill used to pay for a newly produced good or service?a. 10b. 8c. 12d. 16

Country A has a population of 1,000, of whom 700 worked an average of 8 hours a day and had a productivity of 2.5. Country B has a population of 800, of whom 560 worked 8 hours a day and had productivity of 3.0. The country with the higher real GDP was ___.a)country A, and the country with higher real GDP per person was country B.b)country B, and the country with higher real GDP per person was country A.c)country A, and the country with higher real GDP per person was country A.d)country B, and the country with higher real GDP per person was country B.

If the Fed conducts open-market sales, which of the following quantities increase(s)?a)interest rates and prices, but not investment spendingb)interest rates and investment, but not pricesc)interest rates, prices, and investment spendingd)interest rates, but not investment or prices

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, then what is the price of the 1970 bag of groceries in 2006 dollars?a. $37.11b. $25.84c. $1.72d. $32.79

Suppose that over the last twenty-five years a country's nominal GDP grew to three times its former size. In the meantime, population grew by 40 percent and prices rose by 100 percent. What happened to real GDP per person?a)It decreased.b)It increased, but it less than doubled.c)It more than doubled.d)It was unchanged.

Refer to the table. What is net exports?Total income- $5731Household purchases of durable goods- $1108Household purchases of nondurable goods- $702Household purchases of non-education services- $203Household purchases of education services- $302Household purchases of new housing- $816Purchases of capital equipment- $333Inventory changes- $75Purchases of new structures- $267Depreciation- $401Local government spending on goods and services- $236State government spending on goods and services- $419Federal government spending on goods and services- $1182Transfer payments- $707Foreign purchases of domestically produced goods- $217Domestic purchases of foreign goods- $1291.$1062.-$883.$954.$88

The point on a business cycle where real GDP stops rising and begins falling is called a(n):

The consumer price index was 225 in 2006 and 234 in 2007. The nominal interest rate during this period was 6.5 percent. What was the real interest rate during this period?a. 1.5%b. 2.5%c. 3%d. 5%

If inflation is higher than what was expected, ___.a)debtors receive a higher real interest rate than they had anticipated.b)debtors pay a higher real interest rate than they had anticipated.c)creditors receive a lower real interest rate than they had anticipated.d)creditors pay a lower real interest rate than they had anticipated.

If the reserve requirement ratio is 15 percent, and banks do not hold excess reserves, and people hold only deposits and no currency, then when the Fed sells $65 million of bonds to the public, bank reserves ___1. decrease by $65 million and the money supply eventually decreases by $433.33 million2. increase by $65 million and the money supply eventually increases by $433.33 million3.decrease by $65 million and the money supply eventually decreases by $266.67 million.4. increase by $65 million and the money supply eventually increases by $266.67 million.

A basket of goods costs $800 in the U.S. In Belgium the basket of goods costs 800 euros and the exchange rate is .80 euros per U.S. dollar. In Japan the basket of goods costs 720,000 yen and the exchange rate is 900 yen per dollar. Which country has a real exchange rate equal to 1 with the U.S.?1)both2)Belgium but not Japan3)Japan but not Belgium4)neither Belgium nor Japan

YearPrice of WafflesQuantity of WafflesPrice of PancakesQuantity of Pancakes2006: $2120$21502007: $3150$32002008: $4180$3220Refer to the table. The table above contains data for the country of Batterland, which produces only waffles and pancakes. The base year is 2006. From 2007 to 2008, Batterland's output grew ___.a. 12.8%b. 15%c. 14.3%d. 13.7%

When the price level falls, the number of dollars needed to buy a representative basket of goods1)increases, so the value of money falls.2)decreases, so the value of money rises.3)decreases, so the value of money falls.4)increases, so the value of money rises.

The term hyperinflation refers to ___.a)a decrease in the inflation rate.b)the spread of inflation from one country to others.c)inflation accompanied by a recession.d)a period of very high inflation.

In which of the following cases was the inflation rate 10 percent over the last year?a)One year ago the price index had a value of 145 and now it has a value of 163.b)One year ago the price index had a value of 110 and now it has a value of 120.c)One year ago the price index had a value of 126 and now it has a value of 140.d)One year ago the price index had a value of 120 and now it has a value of 132.

If a country changes its corporate tax laws so that domestic businesses build and manage more business in other countries, then the net capital outflow of that country1)and the net capital outflow of other countries rise.2)falls and the net capital outflow of other countries rise.3)rises and the net capital outflow of other countries fall.4)None of the above are correct.

In the economy of Ukzten in 2010, consumption was $3000, exports were $200, GDP was $8000, government purchases were $1000, and imports were $600. What was Ukzten's investment in 2010?1)$32002)$38003)$36004)$4400