macro exam #2

A company produced 8 dishwasher machines in 2015. The company sold 6 in 2015 and added 2 to its inventories. The market value of the dishwasher machines in 2015 was $200 per unit. What is the value of this company's output that will be included in the 2015 GDP? $400 $1,400 $1,600 $2,000

$1,600

Refer to Table 8-8. Looking at the table above, real average hourly earnings in 2005 were $3.67. $5.63. $10.24. $11.37.

$5.63.

Monthly expenditures for a family of 4 in 2005 averaged $1,400. In 2006, the cost of the same purchases was $1,500. If 2005 is the base year, what was the CPI in 2006? 110 107 100 93

107

Refer to Table 8-8. Looking at the table above, real average hourly earnings between 2005 and 2006 changed by 1.2%. 4.5%. 9.9%. 14.5%.

14.5%.

The GDP deflator in year 3 is 85 using year 1 as a base year. This means that, on average, the price of goods and services is 7.5% higher in year 1 than in year 3. 15% higher in year 1 than in year 3. 7.5% higher in year 3 than in year 1. 15% higher in year 3 than in year 1.

15% higher in year 1 than in year 3.

Refer to Table 22.1. The labor force equals 14,000 people. 17,000 people. 18,000 people. 21,000 people.

17,000 people.

Refer to Table 8-1. Suppose that the data in the table above reflect price levels in the economy. What is the inflation rate between 2004 and 2005? 2.9% 3.5% 4.6% 5% 7.5%

2.9%

If the economy grows at 10 percent from year 1 to year 2 and real GDP is 300 in year 1, what will real GDP be in year 2? 10 300 315 330

330

Refer to Table 21.1. The value of government spending in billions of dollars is 100. 200. 300. 500.

500.

The figure above shows the loanable funds market. The equilibrium real interest rate is ________, and the equilibrium quantity of loanable funds is ________. 6 percent; $2.0 trillion 4 percent; $1.5 trillion 4 percent; $2.5 trillion 8 percent; $1.5 trillion 0 percent; $3.5 trillion

6 percent; $2.0 trillion

If the number of unemployed workers is 200 million, the number of employed workers is 300 million, and the working-age population is 800 million, what is the labor force participation rate? 12.5% 37.5% 40% 62.5%

62.5%

If the labor-force participation rate is 82% and the total population 16 years of age or older is 1 million people, the labor force is 910,000 people. 820,000 people. 740,000 people. 180,000 people.

820,000 people.

In the loanable funds market, which of the following is an example of investment demand? Mark buying rare gold coins Mary buying stocks for her retirement portfolio George purchasing United States savings bonds for his son's college fund Brian, owner of Bryan Games, purchasing computers to enhance the production of games Scott purchasing a rookie-year baseball card for last year's World Series MVP

Brian, owner of Bryan Games, purchasing computers to enhance the production of games

In a business cycle recession, which of the following occurs? Investment demand decreases and the demand for loanable funds curve shifts leftward. The quantity of investment demanded decreases increases and there is a movement up along the demand for loanable funds curve but no shift in the curve. The quantity of investment demanded decreases and there is a rightward shift of the demand for loanable funds curve. Investment demand increases and the demand for loanable funds curve shifts rightward. The quantity of investment demanded increases and there is a movement down along the demand for loanable funds curve but no shift in the curve.

Investment demand decreases and the demand for loanable funds curve shifts leftward.

If the CPI changes from 125 to 120 between 2007 and 2008, how did prices change between 2007 and 2008? Prices decreased by 5% Prices increased by 25%. Prices increased by 5%. Prices decreased by 4%.

Prices decreased by 4%.

You earned $30,000 in 1980, and your salary rose to $80,000 in 2006. If the CPI rose from 82 to 202 between 1980 and 2006, which of the following is true? The purchasing power of your salary increased between 1980 and 2006. The purchasing power of your salary remained constant between 1980 and 2006. The purchasing power of your salary fell between 1980 and 2006. There was deflation between 1980 and 2006.

The purchasing power of your salary increased between 1980 and 2006.

Which of the following shifts the supply of loanable funds curve? change in investment demand change in disposable income change in "animal spirits" change in the real interest rate change in expected profit

change in disposable income

Workers laid off as a result of a recession suffer structural unemployment. cyclical unemployment. frictional unemployment. natural unemployment. seasonal unemployment.

cyclical unemployment.

Other things remaining the same, as the real interest rate increases, firms' demand for funds will not change. the demand for loanable funds curve shifts leftward. firms will borrow less funds. firms will purchase new capital with its own funds instead of taking a loan. firms will borrow more funds.

firms will borrow less funds.

The short-term unemployment arising from the process of matching workers with jobs is called seasonal unemployment. unnatural unemployment. structural unemployment. frictional unemployment. cyclical unemployment.

frictional unemployment.

The supply of loanable funds is from firms and the government if it has a budget surplus. households and the government if it has a budget surplus. households and firms. households and the government if it has a budget deficit. firms and the government if it has a budget deficit.

households and the government if it has a budget surplus.

Bob is not considered unemployed if he is temporarily laid off. is not working but has looked for a job for the past two months. is not looking for a job. all of the above.

is not looking for a job.

The quantity of loanable funds demanded increases if the real interest rate falls, all other things remaining the same, because the real interest rate is the opportunity cost of investment. determines the cost of living. affects the quantity of saving supplied. is not related to the price of bonds and stocks. affects the supply of saving which, in turn, determines the quantity of investment.

is the opportunity cost of investment.

If inflation increases unexpectedly, then lenders receive a lower real interest rate than they expected. neither borrowers nor lenders lose. borrowers pay a higher real interest rate than they expected. lenders gain and borrowers gain.

lenders receive a lower real interest rate than they expected.

A fall in the real interest rate brings a movement up along the demand for loanable funds curve. rightward shift of the demand for loanable funds curve but no movement along the curve. movement down along the demand for loanable funds curve and a rightward shift of the demand for loanable funds curve. movement down along the demand for loanable funds curve but no shift in the curve. leftward shift of the demand for loanable funds curve.

movement down along the demand for loanable funds curve but no shift in the curve.

A fall in the real interest rate brings a movement up along the supply of loanable funds curve. movement down along the supply of loanable funds curve. leftward shift of the supply of loanable funds curve. rightward shift of the supply of loanable funds curve. rightward shift of the demand for loanable funds curve.

movement down along the supply of loanable funds curve.

The stated interest rate on a loan is the real interest rate. nominal interest rate. expected inflation rate. actual inflation rate.

nominal interest rate.

Gross domestic product measured in terms of the prices of a fixed, or base, year is nominal GDP. base GDP. current GDP. real GDP.

real GDP.

If your nominal wage rises faster than the price level, we can say your real wage has ________ and the purchasing power of your income has ________. fallen; fallen risen; fallen risen; risen fallen; risen

risen; risen

People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of persons who are suffering unnatural unemployment. structural unemployment. cyclical unemployment. frictional unemployment. seasonal unemployment.

structural unemployment.

Telephone operators who have lost their jobs as a result of computerized switchboards are an example of cyclical unemployment. voluntary unemployment. structural unemployment. frictional unemployment.

structural unemployment.

If no foreign companies produce in a country, but many of the country's companies produce abroad, then the country's GDP will tend to be equal to its domestic income. the country's GNP will tend to exceed its GDP. the country's GNP and GDP will tend to be equal. the country's GDP will tend to exceed its GNP.

the country's GNP will tend to exceed its GDP.

During a deflationary period, the nominal interest rate does not change. the real interest rate is less than the nominal interest rate. the price level rises. the nominal interest rate is less than the real interest rate.

the nominal interest rate is less than the real interest rate.

During the month of May, 10 million workers moved from being classified as "unemployed" to being classified as "employed." As a result, the labor force participation rate fell. the labor force participation rate rose. the unemployment rate rose. the unemployment rate fell.

the unemployment rate fell.

Which of the following is not included in 2016's GDP? the value of a motorcycle produced in the United States and exported to Japan the commission earned by a headhunter when she locates a job for a client the profit earned in 2016 from selling a stock that you purchased in 2008 the value of a motor that is used in the production of a lawn mower

the value of a motor that is used in the production of a lawn mower

The base year of an index is the last year of the index. the first year of the index. the year chosen for the weights in a fixed weight procedure. the year currently being calculated.

the year chosen for the weights in a fixed weight procedure.

The figure above shows the loanable funds market. If the real interest rate is 10 percent, then the government must intervene in order to prevent a credit crisis. there is a shortage in the loanable funds market. there is a surplus in the loanable funds market. savers will exit the market because of the high opportunity cost of saving. the interest rate must increase.

there is a surplus in the loanable funds market.

Which of the following is included in both the U.S. GDP and GNP? The value of all cars produced by Ford in Mexico. The value of all cars produced by General Motors in the U.S. The value of cars produced by Nissan in Japan and the U.S. The value of all cars produced by Toyota in the U.S.

The value of all cars produced by General Motors in the U.S.

Which of the following is an example of a final good or service? a computer purchased by Federal Express to track shipments wheat a bakery purchases to make bread coffee beans Starbucks purchases to make coffee lumber purchased by a construction company to bin used in building houses

a computer purchased by Federal Express to track shipments

An example of a seasonally unemployed worker would be a software engineer who is laid off because of declining demand for the software he writes. a mother who quits her job to stay home with her children. a General Motors employee loses her job because the company is downsizing its work force. a day care provider who quits his job to go back to school. a ski lift operator who loses his job when the snow melts in the spring.

a ski lift operator who loses his job when the snow melts in the spring.