Macroeconomics Questions
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Consider a farmer who grows wheat and sells it to a bakery. The bakery then uses this wheat to bake bread sold to consumers. Which of the following is true?A) Including wheat in the calculation of GDP would be double counting.B) Wheat is a final good.C) Wheat is included in the calculation of GDP.D) Including bread in the calculation of GDP would be double counting.
If Julian's disposable income decreases from $4,800 to $4,200 and his level of consumption decreases from $4,500 to $4,000, it may be concluded that his marginal propensity toA) consume is 1/6.B) consume is 4/5.C) save is 1/6.D) save is 5/6.
Refer to the table. These are all of the goods produced within a country for year 1.Wood is not sold to consumers. Instead, wood is used to produce furniture. Furniture and backpacks are sold to consumers. There are no services produced. What is nominal GDP for this country in year 1?Year 1 Good Units of Output Price per Unit Wood 20 $8 Furniture 5 $10 Backpacks 10 $15A) $160 B) $200C) $360D) There is not enough information to answer this question.
Each week Jim buys the same market basket composed of a case of ramen noodles, two bottles of coke, and three bags of tortilla chips. Jim has found that it takes more of his wages to buy this market basket than before. We can say ________.A) Jim's nominal wage has gone downB) Jim's real wage has gone downC) Jim's after-tax wage has gone downD) Jim must be buying higher quality products
If an economy maintains a small rate of growth for a long period of time, then the size of the economyA) can only increase by a small amount.B) can never double.C) can increase by a large amount.D) will stay nearly constant.
Refer to the diagram of production possibilities. Which of the following is false?A) Point 4 is attainable for a country with curve ABB) Point 4 is not efficient for a country with curve ABC) Point 5 is attainable for a country with curve CDD) Point 2 is efficient for a country with curve AB
How does exporting one Boeing aircraft and importing one Airbus aircraft affect GDP?A) GDP does not change because net exports would be zero.B) GDP could increase or decrease depending on the market value of each aircraft.C) GDP would increase because exports are positive.D) GDP would decrease because imports are negative.
A nation's nominal gross domestic product (GDP) ________.A) can be found by summing C + I + S + NXB) is always some amount less than C + I + G + NXC) is the dollar value of all final output produced within the borders of the nation during a specific period of timeD) is the dollar value of all final output produced by its citizens, regardless of where they are living
Consumers in an economy buy only three general types of products, A, B, and C. Changes in the prices of these items over a period are shown below.Using year 1 as the base year, the country's Consumer Price Index in year 2 isA) 100.00.B) 103.75.C) 105.25.D) 106.25
A country produces two goods: cheese and calculators. In year 1, the price of cheese is $2 and the price of a calculator is $10. In year 2, the price of cheese is $3 and the price of a calculator is $10. In year 2, the country produces 10 units of cheese and 1 calculator. What is real GDP in year 2, using year 1 as the base year.A) $40B) $30C) $50D) Not enough information to answer this question
Before the Industrial Revolution, living standards in the worldA) were relatively stagnant for long periods of time.B) were already rising significantly for many decades.C) are not known, for lack of reliable records from that period.D) were declining because of rapid increases in population.
An increase in the demand for money, holding the supply of money constant will have what effect on the interest rate?
What institution is tasked with managing the United States money supply?
Illustate economic growth with a PPC graph and LRAD graph
If the Fed wants to accommodate a real economic growth rate of 3 % and an inflation rate of 2 % , then it should (increase or decrease) the money supply by ____%
The % of demand deposits banks are unable to legally lend is referred to as ...
The availability of more land and capital encourage economic growth . Why do increases in the population not necessarily lead to economic growth ?
If the federal reserve wants to accommodate expansionary fiscal policy and offset any increases in interest rates, then they should (buy or sell) bonds and (raise or lower) the discount rate
If expected inflation is 3 % and households demand a real return of 2 % , then the lowest nominal interest rate for which they would rationally lend their savings is...
With a supply and demand graph about wages, demonstrate the consequences of an effective minimum wage. Who wins and who loses?