Economics Final Exam

Suppose that there are 70 million people in the labor force, of whom 60 million are employed. The unemployment rate is: 7%. 10%. 14.29%. 4.2%.

14.29%.

Total expenditures on GDP by the household sector are: ​ $100 billion. $1,085 billion. $500 billion. $600 billion. ​

$600 billion. ​

The price measure MOST widely used to determine the inflation rate in the United States is the _____. producer price index consumer price index GDP deflator national income account

consumer price index

If the price level and nominal GDP both doubled, then real GDP would: also double. increase by half. remain unchanged. decrease by half.

remain unchanged.

Suppose that a lender expects a real interest rate of 9%. If the expected inflation rate is 3%, the nominal interest rate is _____%. 3 9 12 6

12

Suppose that banks are issuing personal loans at 9%. If expected inflation is 3%, then the nominal interest rate is _____%, and the real interest rate is _____%. 6; 9 9; 6 9; 3 6; 12

9; 6

Which transaction is included in the nation's gross domestic product? A college student buys a used textbook from his roommate. A construction company purchases lumber to build a new house. A college student buys a pizza and has it delivered to her dorm room. A group of college students volunteer to rake leaves at an assisted living facility for senior citizens.

A college student buys a pizza and has it delivered to her dorm room.

Menu costs of inflation are the: costs associated with money becoming a less reliable unit of measurement. costs of transactions associated with avoiding the inflation tax. costs associated with businesses changing prices. revenue the government gets from printing money.

costs associated with businesses changing prices.

Deflation is a: decrease in unemployment. decreasing aggregate price level. decline in wages. recession.

decreasing aggregate price level.

The total income of households after taxes and government transfers is called: disposable income. private savings. aggregate spending. investment.

disposable income.

The town of York produces two goods, good A and good B. The following is information regarding York's production of these two goods and their prices over three years. With 2017 as the base year, real GDP in 2017 was _____ GDP in _____. equal to real; 2018 equal to nominal; 2017 greater than real; 2018 greater than nominal; 2019 ​

equal to nominal; 2017

The interest rate is 5% in the market for loanable funds. Investors wish to borrow $100 million, and savers wish to save $125 million at this interest rate. We would expect the interest rate to _____, as there is a _____ of loanable funds. fall; shortage rise; surplus rise; shortage fall; surplus

fall; surplus

GDP is the total dollar value of all: intermediate goods and services produced in the economy in a given period. wages paid to producing workers in a given period. final goods and services produced in the economy in a given period. government production in a given period.

final goods and services produced in the economy in a given period.

In the long run, wages and prices are: sticky. constant. flexible. irrelevant.

flexible

Investment spending: fluctuates more than consumption. fluctuates less than consumption. fluctuates by the same amount as consumption. is less volatile than consumption.

fluctuates more than consumption.

When the government invests in building roads, ports, and a reliable power grid, it is investing in the nation's: private property. human capital. technological progress. infrastructure.

infrastructure

Which factor is NOT a determinant of consumer spending? disposable income expected disposable income wealth investment spending

investment spending

A nation's exports minus its imports: equals its private investment. is net exports. is always a positive number. is equal to net transfer payments.

is net exports.

The real interest rate is the nominal interest rate _____. less the rate of inflation divided by the rate of inflation multiplied by the rate of inflation plus the rate of inflation

less the rate of inflation

In a closed economy, national savings equals private savings: minus consumption spending. plus the budget balance. minus investment spending. minus tax receipts.

plus the budget balance.

The producer price index is often regarded as a warning sign of inflation because: prices of inputs will ultimately be reflected in prices of final products. producers are likely to have monopoly control over prices. consumers have to pay the prices charged. commodity producers can sell whatever they want at higher prices.

prices of inputs will ultimately be reflected in prices of final products.

If an economy is operating at an aggregate output level below potential output: unemployment will be high. nominal wages will rise, as the economy moves from the short run to the long run. the SRAS curve will shift to the left, as the economy moves from the short run to the long run. there will be no change in the aggregate price level.

unemployment will be high.

The scale MOST often used to compare economic performance in other years is: the circular-flow diagram. real GDP. the business cycle. fiscal policy.

real GDP.

When the price level increases and incomes remain constant, _____. everyone becomes wealthier real income decreases real wealth increases lenders are better off

real income decreases

In the circular-flow model, households: receive transfer payments from the government. buy resources in the factor markets. sell products in the market for goods and services. issue stocks and bonds to raise capital.

receive transfer payments from the government.

If the market interest rate is 14.5%, the last project undertaken is: ​ F. G. H. I.

H

Assume an open economy in which GDP is $20 trillion. If consumption is $14 trillion, government spending is $3 trillion, taxes are $2 trillion, government transfers are $0, exports are $2 trillion, and imports are $3 trillion, what is the net capital inflow? $1 trillion $3 trillion -$1 trillion -$3 trillion ​

$1 trillion

According to the information presented in the Table, GDP is: $94 billion. $188 billion. $168 billion. $139 billion. ​

$188 billion.

Assume an open economy in which GDP is $12 trillion. If consumption is $8 trillion, government spending is $2 trillion, taxes are $0.5 trillion, exports are $1 trillion, and imports are $3 trillion, what is national savings? $4 trillion $3.5 trillion $2 trillion $5.5 trillion

$2 trillion

If 99 million people are working, and 1 million are unemployed but actively seeking work, then the unemployment rate is _____%. 1 5 10 100

1

The total population is _____ million. Employed adults- 155 million Labor force -162 million Unemployed adults-7 million Adults not in the labor force- 30 million Non-adults (under 16) population- 40 million 394 162 232 169 ​

232

The total population is _____ million. Employed adults- 200 million Labor force- 208 million Unemployed adults- 8 million Adults in labor force- 30 million Non-adults (under 16) population- 40 million 486 256 278 283

256

Suppose the labor force participation rate is 70%. The number of unemployed adults is _____ million. Total population 350 million Population aged 16 and older 260 million Employed 155 million 27 95 46.5 105 ​

27

Population Data for Roanoke County. If marginally attached workers are included in the labor force and counted as unemployed, the unemployment rate is _____%. Employed- 125,000 Unemployed and looking for work- 3,000 Not working due to disability- 1,000 Not working due to retirement- 3,000 Unemployed and not looking for work due to discouragement over job prospects- 2,000 Under the age of 16- 40,000 Total Population- 174,000 6.4 4.32 3.85 2.3

3.85

The unemployment rate is _____% 3.85 10 4.55 6.75

3.85

If marginally attached workers are included, the number of persons in the labor force in Estill County is: Employed- 5,000 Unemployed and looking for work- 1,000 Not working due to disability- 200 Not working due to retirement- 700 Unemployed and not looking for work due to discouragement over job prospects- 500 Under the age of 16- 2,000 Total Population- 9,400 7,400. 6,500. 6,000. 5,500.

6,500.

If marginally attached workers are included in the labor force and counted as unemployed, the unemployment rate is _____%. Full-time employed- 135 million Not working but looking for work- 7 million Part-time employed- 20 million Discouraged workers- 5 million 4.3 19.2 7.2 12.9

7.2

Suppose the labor force participation rate is 70%. The number of unemployed adults is _____ million. Total population- 200 million Population age 16 and older- 150 million Employed- 97 million 8 53 103 50

8

Which statement is TRUE? The number of people not working but who have looked for work in the past year is equal to the number of unemployed people. The labor force is the total number of people working plus those who are unemployed. The unemployment rate is the number of people unemployed expressed as a percentage of the population. The labor force is the same as the population.

The labor force is the total number of people working plus those who are unemployed.

Other things equal, rising interest rates lead to a _____ in investment spending and a _____ in _____ spending. fall; rise; consumer fall; rise; investment fall; fall; consumer rise; rise; consumer

fall; fall; consumer

In general, expansions are characterized by: increasing unemployment. falling unemployment. decreasing employment. constant employment.

falling unemployment.

To close a recessionary gap using monetary policy, the Federal Reserve should _____ the money supply to _____ investment and consumer spending and shift the aggregate demand curve to the _____. decrease; decrease; right decrease; decrease; left increase; increase; left increase; increase; right

increase; increase; right

An INCREASE in the number of discouraged workers tends to: raise the official unemployment rate. lower the official unemployment rate. lower the number of people who are frictionally unemployed. increase the number of people who are structurally unemployed.

lower the official unemployment rate.

In official unemployment statistics, discouraged workers are: counted as employed. included in the labor force. not included in the labor force. counted as underemployed.

not included in the labor force.

The rate of unemployment is found by dividing the: number of people looking for work by the population. number of people not working but seeking work by the sum of the number of people not working but seeking work and the number of people employed. labor force by the number of people seeking work. unemployed and discouraged workers by the labor force.

number of people not working but seeking work by the sum of the number of people not working but seeking work and the number of people employed.

The unemployment rate is the: percent of the labor force that is unemployed. number of people unemployed. the labor force minus the number of people unemployed. average length of time someone is unemployed.

percent of the labor force that is unemployed.

If the economy is in a _____, and real GDP decreases, the demand curve for money will shift to the _____. recession; right expansion; left depression; right recession; left

recession; right

A survey reveals that, on a small island, initially, 1,000 people have jobs, 200 people are unemployed but are looking for jobs, and 200 people are neither working nor looking for work. Suppose that 100 of the 200 people who weren't looking for work now begin looking for work and that half of the new entrants find a job. The unemployment rate: rises to 19.2%. rises to 21.4%. rises to 28.6%. Nothing happens to the unemployment rate.

rises to 19.2%.

A survey reveals that, on a small island, initially, 40 people have jobs, 10 people are not working but are looking for jobs, and 30 people are neither working nor looking for jobs. Suppose that 10 of the 30 people who weren't working or looking for work now begin looking for work. There are now 20 people without jobs but looking for work and 40 people working. The unemployment rate: rises to 33.3%. rises to 50%. falls to 25%. Nothing happens to the unemployment rate because these people weren't working before, and they aren't working now.

rises to 33.3%.

According to the liquidity preference model, the equilibrium interest rate is determined by the: supply of and demand for loanable funds. supply of and demand for money. level of investment spending and saving. International Monetary Fund.

supply and demand for money

Assume that an economy produces only lemonade and cookies. If 2019 is the base year, real GDP in 2019 was: ​ $400. $420. $425. $445. ​

$445. ​

Suppose a market basket consists of 20 jars of peanut butter and 10 jars of jelly. What is the value of the market basket in 2017? $3 $40 $42 $44.50 ​

$40

What is the total value added of all stages of production of furniture in this production schedule? $800 $1,200 $1,800 $2,000 ​​

$1,200 retail price

Consider an economy that produces only smartphones and laptops. Last year, 10 smartphones were sold at $800 each, and 5 laptops were sold at $1,000 each, while this year, 15 smartphones were sold at $900 each, and 10 laptops were sold at $1,100 each. Real GDP this year, using last year as a base year, is: $22,000. $24,500. $11,000. $13,500.

$22,000.

If, during 2019, the Republic of Sildavia recorded a GDP of $75 billion, interest payments of $15 billion, imports of $13 billion, profits of $7 billion, exports of $15 billion, and rent of $7 billion, wages during 2019 in Sildavia were: $46 billion. $36 billion. $26 billion. $16 billion.

$46 billion.

The reserve requirement is 20%. Oleg receives $1,000 as a graduation present and deposits the money in his checking account. The bank does NOT want to hold excess reserves. What is the maximum possible expansion in the money supply as a result of this initial deposit? Question options: $1,800 $5,000​ $1,000 $4,000

$5,000

Enchanté Inc., a designer clothing company, buys $400 worth of silk and $30 worth of accessories to produce each dress. If the value added by Enchanté is equal to $200, then according to the value-added approach, the price of the designer dress should be: $630. $230. $200. $830. ​

$630.

Suppose the aggregate consumption function is given by C = 1,000 + 0.75YD, where C is consumption, and YD is disposable income. If disposable income increases by $100, aggregate consumption will increase by _____, and autonomous consumption will _____. $75; remain at $1,000 $1,000; remain at $75 $100; increase by $100 $175; increase by $100

$75; remain at $1,000

If the interest rate is 8%, people will want to save approximately: $3 trillion. $2 trillion. $4 trillion. $8 trillion. ​

$8 trillion.

Considering 2018 as the base year, real GDP between 2018 and 2019 grew at a rate of: 53.19%. 39.47%. -39.47%. -58.67%. ​

-39.47%.

In a simple, closed economy (no government or foreign sector), if disposable income increases by $1,000, and consumption increases by $600, the marginal propensity to consume is: $600. $400. 1.67. 0.60.

0.60.

In a simple, closed economy (no government or foreign sector), disposable income decreases from $6,000 to $4,000. If consumption decreases from $4,500 to $3,000, the marginal propensity to consume is: -0.75. -0.20. 0.75. 1.

0.75.

Suppose a market basket consists of the following goods: 50 pens, 25 notepads, and 25 paperclips. Also assume that the unit prices of these goods are as follows for the years noted and that 2018 is the base year. What is the value of the price index in 2018? 100 111 90 0 ​

100

Calculate the GDP deflator for 2019. 111 104 90 96 ​

104 500/480 x 100

Suppose South Korea has a real GDP per capita of $25,000, while England has a real GDP per capita of $50,000. If real GDP per capita in South Korea grows at a 7% annual rate, and England's real GDP per capita grows at a 3.5% annual rate, how long will it take for real GDP per capita in the two nations to converge? 10 years 20 years 25 years 35 years

20 years

Two countries are located on a peninsula. The more northerly country has a per capita annual growth rate of 2%, while its neighbor to the south has a per capita annual growth rate of 5%. How much sooner will the country in the south double its GDP per capita than its neighbor in the north? 5 years 10 years 15 years 21 years

21 years

If the wage rate is $40 per hour, and the price level is 2, then the real wage is _____ per hour. $20 $40 $80 $2

40

The approximate rate of inflation in year 3 is: ​ 5%. 10%. 19%. 20%. ​

5%.

If the consumer price index is 180 in year 1 and 190 in year 2, the inflation rate between year 1 and year 2 is about: 5.26%. 5.56%. 6.5%. 10%.

5.56%.

In an economy without government purchases, government transfers, or taxes, aggregate autonomous consumer spending is $250 billion, planned investment spending is $100 billion, and the marginal propensity to consume is 0.6. What is the expression for planned aggregate spending? AEPlanned = $100 + 0.6YD AEPlanned = $250 + 0.4YD AEPlanned = $350 + 0.6YD AEPlanned = $150 + 0.4YD

AEPlanned = $350 + 0.6YD

A price index: always includes a base year. is used to measure the cost of a market basket across different years. is normalized so that it equals 100 in the base year. All of the above are true.

All of the above are true.

A significant increase in human capital per worker, with all other factors remaining unchanged, is BEST indicated by a move from: ​ A to B. B to A. C to B. B to C.

B to C. ​

Which statement accurately describes what is happening along a typical aggregate production function? At some point, increasing the amount of physical capital per worker will reduce productivity. Increases in physical capital per worker will always bring about an increase in productivity that is worth the cost of the additional physical capital. Because of diminishing returns, increasing the amount of physical capital per worker will eventually bring smaller and smaller increases in productivity. Adding workers results in real GDP per worker rising at an increasing rate throughout the function.

Because of diminishing returns, increasing the amount of physical capital per worker will eventually bring smaller and smaller increases in productivity.

Which scenario might produce a new equilibrium interest rate of 8% and a new equilibrium quantity of loanable funds of $75 billion? Capital inflows from foreign citizens decline. The federal government runs a budget deficit rather than a budget surplus. The expected profitability of business investment declines. The government eliminates taxes on income from interest earned. ​

Capital inflows from foreign citizens decline.

Which equation breaks GDP down into the four sources of aggregate spending? GDP = C + I + G + X + IM. GDP = C + I + G - X - IM. GDP = C - I - G - X + IM. GDP = C + I + G + X - IM.

GDP = C + I + G + X - IM.

Which statement about gross domestic product is FALSE? It is aggregate output. It is the total output of final goods and services. It grows during an expansion. It is the total output of all final and intermediate goods and services.

It is the total output of all final and intermediate goods and services.

Which statement is FALSE? When there is an increase in the government budget deficit, the total amount of funds borrowed falls. When there is an increase in private savings, the interest rate decreases. When there is an increase in the government budget deficit, private investment is crowded out in an expanding economy. When there is an increase in private savings, the total amount of funds borrowed increases.

When there is an increase in the government budget deficit, the total amount of funds borrowed falls.

The value of _____ is counted in GDP. glass for windshields purchased by a car manufacturer a new car sold by a dealer a used car sold by a dealer a share of stock in a car manufacturer

a new car sold by a dealer

In panel (a), if the economy is at an aggregate output of Y1 and a price level of P2, the economy is in: an inflationary gap. a recessionary gap. neither an inflationary nor a recessionary gap. long-run equilibrium.

a recessionary gap.

The _____ curve shows the negative relationship between the aggregate price level and the quantity of aggregate output demanded in the economy. aggregate demand short-run aggregate supply long-run aggregate supply investment demand

aggregate demand

The interest rate effect of a change in the aggregate price level causes the: long-run aggregate supply curve to be vertical. aggregate demand curve to be negatively sloped. short-run aggregate supply curve to be positively sloped. aggregate demand curve to be positively sloped.

aggregate demand curve to be negatively sloped.

If the dollar amount of nominal GDP decreases, then it is possible that ____. aggregate output decreases by less than prices increase aggregate output decreases by more than prices aggregate output increases by more than prices aggregate output increases and prices decrease

aggregate output decreases by more than prices

Crowding out is a phenomenon in which: an increase in the government's budget surplus decreases overall investment spending. overproduction in the goods market leads to a sharp drop in the aggregate price level. an increase in the government's budget deficit reduces overall investment spending. an increase in imports reduces overall domestic production.

an increase in the government's budget deficit reduces overall investment spending.

In the loanable funds market, borrowers: are best represented by the supply of loanable funds. are not affected by changes in the inflation rate. are best represented by the demand for loanable funds. lose money to unexpected increases in the inflation rate.

are best represented by the demand for loanable funds.

Economists use real GDP per capita to measure economic growth: because it does not adjust for price changes. because poor nations have large populations, and the populations of richer nations are declining. because it provides an inflation-adjusted measure of a country's production of goods and services, controlled for population. even though nominal GNP per capita is a superior measure of economic growth.

because it provides an inflation-adjusted measure of a country's production of goods and services, controlled for population.

When inflation rises unexpectedly, borrowers will _____, and lenders will _____. be hurt; benefit benefit; be hurt be hurt; be hurt benefit; benefit

benefit; be hurt

Unit-of-account costs of inflation are the: costs associated with money becoming a less reliable unit of measurement. costs of transactions associated with avoiding the inflation tax. costs associated with businesses changing prices. transfers the government gets from printing money.

costs associated with money becoming a less reliable unit of measurement.

An economy's consumption function would shift from curve C to curve C" when there is a(n): decrease in wealth. decrease in the price level. increase in expected disposable income. increase in wealth.

decrease in wealth.

An increase in health care insurance premiums would likely cause a _____ in short-run aggregate supply and shift the short-run aggregate supply curve to the ____. decrease; left decrease; right increase; right increase; left

decrease; left

Long-run economic growth is: higher in countries with weak legal institutions and frequent government intervention in markets. lower in countries with political stability and an independent judiciary. lower in countries with strong property rights protections and infrequent government intervention in markets. higher in countries with strong legal institutions and political stability.

higher in countries with strong legal institutions and political stability.

Which item CANNOT properly be called infrastructure? power lines roads and bridges human capital seaports

human capital

Capital inflows into a country are associated with: imports exceeding exports. a small amount of funds available for domestic investment. imports equaling exports. exports exceeding imports.

imports exceeding exports.

One difference between a closed economy and an open economy is that: in the latter, foreign savings complement domestic savings in financing investment spending. in the latter, the government is more open to the idea of financing investment spending than in the former. in the former, foreign savings complement domestic savings in financing investment spending. in the former, foreign savings finance more investment spending than in the latter.

in the latter, foreign savings complement domestic savings in financing investment spending.

A movement from point A on AD1 to point C on AD2 may result from a(n): lower price level. higher price level. increase in the total quantity of consumer goods and services demanded. significant decrease in consumers' income.

increase in the total quantity of consumer goods and services demanded.

In the long run, an increase in saving will generally: reduce the rate of economic growth. leave the rate of economic growth unchanged. increase the rate of economic growth. increase consumption simultaneously.

increase the rate of economic growth.

If the economy is at point E, nominal wages will _____, and the short-run aggregate supply curve will shift _____ until actual output is _____ potential output. increase; left; equal to increase; right; greater than decrease; right; equal to decrease; right; less than

increase; left; equal to

Shoe-leather costs are the: effect of inflation on the prices of food, clothing, and other necessities. increased cost of transactions due to inflation. high price of leather goods. effect of inflation on transportation costs. ​

increased cost of transactions due to inflation.

Using monetary policy to address a recessionary gap caused by a supply shock involves _____ to _____. decreasing the money supply; lower the aggregate price level increasing interest rates; decrease investment spending decreasing interest rates; lower the aggregate price level increasing the money supply; lower the unemployment rate

increasing the money supply; lower the unemployment rate

Vanessa tells people she is consuming more now and probably will continue to do so for some time, but she believes her consumption will smooth out over her lifetime. Vanessa's consumption pattern reflects the: multiplier hypothesis. life-cycle income hypothesis. relative income hypothesis. accelerator principle.

life-cycle income hypothesis.

According to the convergence hypothesis, differences in real GDP per capita among countries tend to narrow over time because countries that start with a _____ real GDP per capita tend to have _____ growth rates. lower; higher lower; lower higher; higher higher; negative

lower; higher

When a person makes price comparisons among goods and services, money is being used mainly as a(n): medium of exchange. checkable deposit. unit of account. instigator of economic activity.

medium of exchange.

In the long run, inflationary and recessionary gaps are self-correcting because eventually: nominal wages rise to close an inflationary gap or fall to close a recessionary gap. the government applies the right combination of fiscal and monetary policies. the multiplier compensates for negative supply or demand shocks. nominal wages rise to close a recessionary gap and fall to close an inflationary gap.

nominal wages rise to close an inflationary gap or fall to close a recessionary gap.

Assume a closed economy in which GDP is $110 billion. If government spending is $30 billion, consumption is $70 billion, taxes are $20 billion, and investment spending is $10 billion, then: private savings is $10 billion. the government's budget balance is a surplus of $10 billion. there are no net savings. private savings is $20 billion.

private savings is $20 billion.

Income divided by the price level is _____ income. personal real disposable national

real

Real per capita GDP is: real GDP divided by the population. real GDP divided by the amount of capital available in the economy. not a useful measure of human welfare. rarely used as a tool to compare countries' possible resources.

real GDP divided by the population.

In an economy whose aggregate real output is growing more slowly than the total population: real GDP per capita is falling. the standard of living is increasing. national income is increasing. nominal GDP per capita is increasing, prices are decreasing, and population is decreasing.

real GDP per capita is falling.

If the economy is at point X, there is a(n) _____ gap with _____ unemployment. inflationary; low inflationary; high recessionary; low recessionary; high

recessionary; high ​

An increase in government borrowing will shift the demand curve for loanable funds to the _____, causing the interest rate to _____. left; increase left; decrease right; increase right; decrease ​

right; increase

As an inflationary gap self-corrects, the equilibrium price level _____, and the equilibrium aggregate output _____. rises; decreases rises; increases falls; decreases falls; increases

rises; decreases

Economists say that long-run economic growth is almost entirely due to: rising productivity. population growth. democratic governance. balanced budgets.

rising productivity.

If the interest rate in the market for loanable funds is above the equilibrium interest rate: there is a shortage of loanable funds. savings exceeds investment spending. the quantity demanded of loanable funds exceeds the quantity supplied. consumption is less than savings.

savings exceeds investment spending.

In the circular-flow diagram, firms: sell goods and services. buy goods outside of investment spending. sell labor. buy services outside of investment spending.

sell goods and services.

In an inflationary gap: short-run aggregate supply gradually increases. short-run aggregate supply gradually decreases. aggregate demand gradually increases. aggregate demand gradually decreases.

short-run aggregate supply gradually decreases.

A natural disaster that destroys part of a country's infrastructure is a negative _____ shock and therefore shifts the _____ curve to the _____. demand; aggregate demand; right supply; aggregate demand; left supply; short-run aggregate supply; left demand; long-run aggregate supply; left

supply; short-run aggregate supply; left

The budget balance equals: taxes plus government spending. taxes minus government spending. consumption plus investment. imports minus exports.

taxes minus government spending.

The inflation or deflation rate is: the change in a price index divided by the initial value of the index. the change in a price index divided by the new index number. the difference between the initial price index number and the new price index number. computed by dividing the old price index number by the new price index number.

the change in a price index divided by the initial value of the index.

The price index in the current year is the cost of the market basket in ____ year divided by the cost of the market basket in ____ year times 100. the base; the current the current; the base a past; a future a future; a past

the current; the base

The rule of 70 states that: the average score on standardized tests is normally distributed with a mean of 70 and a standard deviation of 10. everyone should retire by age 70. the number of years it takes for a variable to double is 70 divided by the variable's annual growth rate. Social Security benefits should increase when people reach 70.

the number of years it takes for a variable to double is 70 divided by the variable's annual growth rate.

Which item would NOT be included in this year's GDP? the production of a television show the purchase of a new hybrid truck the hiring of a new school teacher the purchase of your neighbor's house, which was built in 2010

the purchase of your neighbor's house, which was built in 2010

The MOST important use of GDP is as a measure of: the size of the economy. the level of unemployment. changes in the price level. rates of return in financial markets.

the size of the economy.

The aggregate demand curve is downward sloping in part because of: the inverse relationship between price and quantity demanded. changes in expectations of future prices. unexpected changes in commodity prices. the wealth effect of a change in the aggregate price level.

the wealth effect of a change in the aggregate price level.

The aggregate demand curve is negatively sloped in part because of the impact of: the wealth effect of a change in the price level on consumer spending. the interest rate effect of a change in the price level on government spending. the stickiness of nominal wages and salaries. the flexibility of nominal wages and salaries.

the wealth effect of a change in the price level on consumer spending.

Which item would NOT be included in GDP for 2019? the production of a television show the purchase of a new work truck the hiring of a new police officer your purchase of your neighbor's 2015 Toyota

your purchase of your neighbor's 2015 Toyota