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Macroeconomics Questions

Explore questions in the Macroeconomics category that you can ask Spark.E!

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

Consider five individuals with different occupations.Allen:prepares taxeswants ribsBetty:does dry cleaningwants computer fixedCalvin:fixes computerswants breadDiedre:bakes breadwants taxes preparedEric:barbecues ribswants dry cleaningIn a barter system which of the following pairs has a double coincidence of wants?1)Diedre and Calvin2)Allen and Eric3)Both A and B are correct.4)None of the above are correct.

Other things the same, if the exchange rate changes from 30 Thai bhat per dollar to 25 Thai bhat per dollar, then the dollar has1)appreciated and so buys fewer Thai goods.2)appreciated and so buys more Thai goods.3)depreciated and so buys more Thai goods.4)depreciated and so buys fewer Thai goods.

Imagine the U.S. economy is in long-run equilibrium. Then suppose the value of the U.S. dollar increases. At the same time, people in the U.S. revise their expectations so that the expected price level falls. We would expect that in the short-run1)the price level will fall, and real GDP might rise, fall, or stay the same.2)real GDP will fall and the price level might rise, fall, or stay the same.3)the price level will rise, and real GDP might rise, fall, or stay the same.4)real GDP will rise and the price level might rise, fall, or stay the same.

Which of the following events shifts aggregate demand rightward?1)a decrease in the price level, but not an increase in government expenditures2)an increase in government expenditures, but not a change in the price level3)an increase in government expenditures or a decrease in the price level4)a decrease in government expenditures or an increase in the price level

Danielle did not work last week because flooding forced an evacuation of her workplace. The Bureau of Labor Statistics counts Danielle as1)unemployed and not in the labor force.2)employed and in the labor force.3)unemployed and in the labor force.4)employed and not in the labor force.

Suppose the real exchange rate is 1/2 gallon of Canadian gasoline per gallon of U.S. gasoline, a gallon of U.S. gasoline costs $5.00 U.S., and a gallon of Canadian gas costs 8 Canadian dollars. What is the nominal exchange rate?1)1.25 Canadian dollars per U.S. dollar2)1.60 Canadian dollars per U.S. dollar3).80 Canadian dollars per U.S. dollar4)None of the above is correct.

In the long run, the level of output1)depends on the money supply.2)is determined by supply-side factors.3)depends on the price level.4)All of the above are correct.

The price index was 120 in 2006 and 127.2 in 2007. What was the inflation rate?1)6.0 percent2)27.2 percent3)5.7 percent4)7.2 percent

The unemployment rate is computed as the number of unemployed1)divided by the number of employed, all times 100.2)divided by the adult population, all times 100.3)divided by the labor force, all times 100.4)times the labor-force participation rate, all times 100.

Two countries are the same, except one is poorer. Assuming the traditional assumption about the production function is made there are1)increasing returns to capital so the poor country grows slower.2)diminishing returns to capital so the poor country grows faster.3)diminishing returns to capital so the poor country grows slower.4)increasing returns to capital so the poor country grows faster.

The sale of stocks1)to raise money is called equity finance, while the sale of bonds to raise funds is called debt finance.2)and bonds to raise money is called debt finance.3)and bonds to raise money is called equity finance.4)to raise money is called debt finance, while the sale of bonds to raise funds is called equity finance.

When the Federal Reserve conducts open-market operations to increase the money supply, it1)redeems Federal Reserve notes.2)buys government bonds from the public.3)decreases its lending to member banks.4)raises the discount rate.

In a particular country in 1999, the average worker had to work 20 hours to produce 55 units of output. In that same country in 2009, the average worker needed to work 28 hours to produce 77 units of output. In that country, the productivity of the average worker1)decreased by 3 percent between 1999 and 2009.2)increased by 2 percent between 1999 and 2009.3)remained unchanged between 1999 and 2009.4)increased by 5 percent between 1999 and 2009.

Which of the following pairs of values of the consumer price index (CPI) is consistent with an inflation rate of 14 percent for 2011?1)CPI in 2010 = 150; CPI in 2011 = 1642)CPI in 2011 = 150; CPI in 2012 = 1713)CPI in 2010 = 150; CPI in 2011 = 1714)CPI in 2011 = 150; CPI in 2012 = 164

Suppose that banks are less able to raise funds and so lend less. Consequently, because people and households are less able to borrow, they spend less at any given price level than they would otherwise. The crisis is persistent so lending and thus aggregate demand should remain depressed for some time. In the long run, if the Fed does not respond, the change in price expectations created by the crisis shifts1)short-run aggregate supply left.2)aggregate demand right.3)aggregate demand left.4)short-run aggregate supply right.

Other things the same, in the open-economy macroeconomic model, which of the following would make India's net capital outflow increase?1)a decrease in U.S. interest rates2)a decrease in Indian interest rates3)an appreciation of the Indian rupee4)None of the above is correct.

For an imaginary closed economy, T = $5,000; S = $11,000; C = $50,000; and the government is running a budget deficit of $1,000. Then1)private saving = $12,000 and GDP = $67,000.2)private saving = $10,000 and GDP = $54,000.3)private saving = $10,000 and GDP = $58,000.4)private saving = $12,000 and GDP = $72,000.

Refer to the table. Starting from the situation as depicted by the T-account, if someone deposits $500 into the First Bank of Fairfield, and if the bank makes new loans so as to keep its ratio of reserves to deposits unchanged, then the amount of new loans that it makes will beThe First Bank of FairfieldAssetsLiabilitiesReserves $2,000Deposits $10,000Loans 8,0001)$680.2)$320.3)$750.4)$400.

In 2009, the imaginary nation of Florastan had a population of 8,300 and real GDP of 190,900. In 2010 it had a population of 8,400 and real GDP of 200,445. What was growth in real GDP per person in Florastan in 2010?1)5%2)1.2%3)3.8%4)None of the above is correct.

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