econ

What is one reason why a government will deliberately inflate its national money supply? The action enables the government to borrow funds to remain in operation. The action benefits retirees and anyone else on a fixed income. The action temporarily boosts the growth rate of a sluggish economy. The action helps keep inflation under control in the long run. The action promotes the interests of domestic producers at the expense of foreign ones.

The action temporarily boosts the growth rate of a sluggish economy.

Which of the following statements best describes the average standard of living for much of human history, prior to the Industrial Revolution? There were no wealthy people; everyone earned the same income. There were some wealthy people, but the average person earned subsistence wages. Everyone earned comfortable wages; there were no poor people. There were some poor people, but the average person earned high wages. Everyone was wealthy; there were no poor people

There were some wealthy people, but the average person earned subsistence wages.

Consider the equation %ΔM + %ΔV ≈ %ΔP + %ΔY. If the velocity of money does not change (%ΔV = 0), and the change in real gross domestic product (GDP) exactly keeps pace with the change in the money supply (%ΔM = %ΔY), what will happen to the price level (P) in the long run? There will be inflation It will equal the sum %ΔM + %ΔY. There will be no inflation or deflation. There will be deflation

There will be no inflation or deflation.

Ford Motor Co. is an American company that produces vehicles in Thailand. The value of Ford's production in Thailand is included in U.S. GDP but not U.S. GNP. both U.S. gross domestic product (GDP) and U.S. gross national product (GNP). U.S. GDP nor U.S. GNP. half U.S. GDP and half U.S. GNP. U.S. GNP but not U.S. GDP.

U.S. GNP but not U.S. GDP.

Gross domestic product (GDP) is best defined as the total market value of all goods and services produced within a country within a given time. final goods produced within a country within a given time. goods produced within a country within a given time. services produced within a country within a given time. final goods and services produced within a country within a given time.

final goods and services produced within a country within a given time.

Maia and Yousef just got married. Yousef recently graduated and received a master's degree in childhood education. He is currently searching for a job that matches his new skill set and interest. However, Maia just lost her job as a computer programmer because she was replaced by a very efficient software program. In this example, Yousef is ________ unemployed and Maia is ________ unemployed. frictionally; structurally cyclically; frictionally creatively; cyclically frictionally; cyclically structurally; creatively

frictionally; structurally

During the summer, a costume shop stocks up on costumes in anticipation of Halloween. This inventory is included in the ________ category of gross domestic product (GDP). government purchases investment services net exports consumption

investment

Government policies can assist in reducing the level of structural unemployment. Which of the following would be most useful in reducing structural unemployment? incentivizing companies to cut costs. providing unemployment insurance. establishing government regulations on firing employees. Subsidizing worker relocation costs providing job-training programs and subsidizing worker relocation costs

providing job-training programs and subsidizing worker relocation costs

Stocks are the type of securities that represent a debt to be paid. have a face value and a maturity date. represent ownership of the firm by the holders. do not give up ownership of the business to their holders. always guarantee a return to their holders.

represent ownership of the firm by the holders.

The COVID-19 pandemic had a dramatic effect on economic growth in the United States. In 2020, nominal GDP growth was -2.3%, the inflation rate was 1.4%, and the population growth rate was 0.5%. Based on this data, real per capita GDP growth in the United States in 2020 was 0.4%. -0.4%. 4.2%. -1.4%. -4.2%.

-4.2%.

You are an economic consultant and you have been contacted by an official from a developing country. The official tells you that her country's economy is currently growing at 2% per year. She asks you how long it will take for her country's economy to double in size; you tell her it will take 35 years. She then asks you what the government can do to shorten the time necessary to double the size of the country's economy. What should you tell her? Restrict the flow of capital across borders. Immediately halt all immigration. Increase barriers to international trade. Suspend the rule of law. Encourage institutions such as better adherence to rule-of-law, private property, and government accountability.

Encourage institutions such as better adherence to rule-of-law, private property, and government accountability.

Which of the following describes an advantage of having foreign savings buying U.S. Treasury securities? Foreign savings keep interest rates higher in the United States than rates would be otherwise. Foreign savings keep interest rates lower in the United States than rates would be otherwise. Foreign savings are harmful to the U.S. economy. They do not provide any benefit to the U.S. economy. Foreign savings allow U.S. firms and government to undertake their activities at higher costs. Foreign savings must occur through buying Treasury securities to be beneficial for the economy.

Foreign savings keep interest rates lower in the United States than rates would be otherwise.

What did Milton Friedman mean by saying that "inflation is always and everywhere a monetary phenomenon"? In any economy that uses money as a medium of exchange, there will always be some inflation. In the long run, inflation is caused by an increase in the money supply relative to the quantity of goods and services. Inflation is due to cash transactions, not transactions based on credit. Inflation affects only those who hold money, as savings or in the form of investments. Inflation is about rising prices, not about rising productivity.

In the long run, inflation is caused by an increase in the money supply relative to the quantity of goods and services.

Between 2006 and 2010, real per capita gross domestic product (GDP) in India grew at an average rate of 7.11% per year. Which of the following factors could have contributed most to this rapid escalation in the growth rate? decreases in education standards a significant increase in taxes increases in government regulations advances in technology restrictions on immigration

advances in technology

Assume that household wealth rises and, at the same time, governments borrow less. Based on this, we would correctly say that the new equilibrium quantity of loanable funds would increase, but we would be unable to tell if the new equilibrium interest rate would be higher or lower than the original. based on this information and because both changes would affect the demand for loanable funds in the opposite way, we would be unable to say anything about the relationship of the new equilibrium interest rate and quantity to the original interest rate and quantity. the new equilibrium quantity of loanable funds would be indeterminate, but we would be certain the new equilibrium interest rate would be less than the original. the new equilibrium quantity of loanable funds would be indeterminate, but we would be certain the new equilibrium interest rate would be higher than the original. the new equilibrium quantity of loanable funds would decrease, but we would be unable to tell if the new equilibrium interest rate would be higher or lower than the original.

the new equilibrium quantity of loanable funds would be indeterminate, but we would be certain the new equilibrium interest rate would be less than the original.