Econ 203- Exam 3

An economy produces only 1,000,000 computers valued at $2,000 each. Of these, 200,000 are sold to consumers, 300,000 are sold to businesses, 300,000 are sold to the government, and 100,000 are sold abroad. No computers are imported. At the end of the year, the computer manufacturers hold the unsold computers in inventory. What is the value of the investment component of GDP?

$0.8 billion

If Alex deposits $1,000 from her paycheck into her checking account and, at the same time, increases her credit card balance by $1,500, then her saving is ______, and her wealth ______.

-$500; decreases by $500

If the natural rate of unemployment equals 6 percent and the actual rate of unemployment equals 5 percent, then cyclical unemployment equals:

-1 percent.

The CPI in 1930 equaled 0.17. The CPI in 1931 equaled 0.15. The rate of inflation between 1930 and 1931 was ______ percent.

-11.8

In Macroland, potential output equals $100 trillion and the natural rate of unemployment is 4 percent. If the actual unemployment rate is 5 percent, then the output gap equals:

-2 percent.

On January 1, 2008, Anna invested $5,000 at 5% interest for one year. The CPI on January 1, 2009 stood at 1.60. On January 1, 2009, the CPI was 1.68. The real rate of interest earned by Anna was ______ percent.

0

Which of the following is a real quantity? A. The current wages paid to factory workers B. The cost of a new car C. The number of tons of steel produced in D. The current price of a barrel of oil

C. The number of tons of steel produced in

Providing workers with on-the-job training will increase:

average labor productivity.

The discovery and utilization of vast, previously unknown oil and mineral deposits in a country will increase:

average labor productivity.

The M2 measure of money consists of the sum of:

M1, savings deposits, small time deposits, and money market mutual funds.

If the nominal interest rate is 10% and the inflation rate is 3%, then the real interest rate equals:

7%

Mike and Tom debone chicken breasts for Ted's Chicken Co. Mike is new and can only debone 60 chicken breasts per hour, while Tom's experience allows him to debone 120 chicken breasts per hour. Both Mike and Tom work 40 hours per week. Their average hourly productivity as a team is ______ chicken breasts.

90

Credit card balances are not considered to be money primarily because they:

are not part of people's wealth.

Wealth equals:

assets minus liabilities.

Intermediate goods and services are ______ production and ______ counted in GDP.

used up in the process of; are not

If two countries are economically identical except that citizens in one country have more leisure time, then the level of GDP:

will be the same in both countries.

Government health and safety regulations or anti-discrimination laws can reduce real wages by:

decreasing the demand for labor.

Managers contribute to increased average labor productivity in each of the following ways except by:

developing new products.

The principle that if the amount of labor and other inputs is held constant, then the greater the amount of capital in use, the less an additional unit of capital adds to production is called the principle of:

diminishing returns to capital.

The real rate of return on holding cash ______ inflation is correctly anticipated.

does not depend on whether

Two reasons savers keep deposits at banks are to:

earn a return on their savings and to facilitate making payments.

If firms maintain preset prices in the short run, then the primary cause of output gaps is changes in:

economy-wide spending.

More economic growth is not necessarily better unless the benefits of growth:

exceed the costs of growth.

If a borrower and lender agree to an interest rate on a loan when inflation is expected to be 7% and inflation turns out to be 10% over the life of the loan, then the borrower ______ and the lender ______.

gains; loses

In the United States between 1970 and 2000, employment:

grew more rapidly than the over-sixteen population.

The rise in average living standards experienced by most industrialized countries:

has been more rapid since 1950 than before 1950.

The unemployment rate for younger workers is usually ________ the unemployment rate for older workers.

higher than

Economists refer to the talents, training, and education of workers as:

human capital.

An inflation rate of over 500 percent per year would be classified as:

hyperinflation.

To ensure that a nominal payment represents a constant level of purchasing power over time, one should:

increase it by a percentage equal to the rate of inflation for that year.

The introduction of a new technology that raises the marginal product of new capital will:

increase real interest rates and the equilibrium quantity of saving supplied and demanded.

The introduction of a new technology that increases the productivity of labor will:

increase the demand for labor.

If the public switches from using cash for most transactions to using checks instead, then all else equal, the money supply will:

increase.

A government policy of providing free public education is an example of a policy to promote economic growth by:

increasing human capital.

High rates of saving and investing in the private sector promote economic growth by:

increasing physical capital.

A rapidly growing supply of money will lead to:

inflation.

Goods and services that are used up in the production of other goods and services are called ______ goods and services.

intermediate

GDP equals the value added by producers of:

intermediate goods and services, as well as final goods and services.

The investment demand curve indicates that there is a(n):

inverse relationship between the real interest rates and the level of investment spending, all other things equal.

Spending on new capital goods, new homes, and the addition of unsold goods to company inventories is included in:

investment spending.

The substitution bias in the CPI arises because the CPI:

is based on a fixed basket of goods and services.

If prices in the current year are higher on average than in the base year, real GDP in the current year ______

is less than

The value of unpaid childcare services provided by a stay-at-home dad ______ included in GDP; the value of daycare services purchased from a licensed childcare provider ______ included in GDP.

is not; is

According to Okun's law, when the output gap is negative, cyclical unemployment:

is positive.

Money serves as a medium of exchange when:

it is used to purchase goods and services.

When a bank makes a loan by crediting the borrower's checking account balance with an amount equal to the loan:

money is created.

The average annual growth rates of labor productivity from 1947 to 1973 were ______ the average rates over the period from 1973 to 1995.

more rapid than

Real GDP measures the ______ of production; nominal GDP measures the ______ of production.

physical volume; current dollar value

Most political scientists and economists agree that ______ is detrimental to economic growth.

political instability

The key indicator of a country's living standard and economic well-being is:

real GDP per person.

Because the minimum wage is not indexed to inflation, when there is inflation the nominal minimum wage _____, and the real minimum wage _____.

remains constant; decreases

Ted and Alice want to make sure that their children will inherit lots of money when they die, so that their children do not have to struggle the way they themselves did. Saving more in response to this is a______ reason for saving.

bequest

Despite some problems with equating GDP with economic well-being, higher real GDP per person does imply greater economic well-being because it tends to be positively associated with:

better education, health and life expectancy.

The phenomenon known as ______ occurs when inflation causes people to pay an increasing percentage of their income in taxes even when their real incomes have not changed.

bracket creep

Arguments that economic growth must be constrained by environmental problems and limits of natural resources ignore the fact that economic growth can:

take the form of improved quality as well as increased quantity.

If real GDP is less than potential GDP, then:

the actual unemployment rate is greater than the natural rate of unemployment.

In determining the beginning of recessions, the NBER Business Cycle Dating Committee looks for evidence of decline in:

the entire economy.

Physical capital is:

the factories and machinery used to produce other goods and services.

In reference to short-term economic fluctuations, the "peak" refers to:

the high point of economic activity prior to a downturn.

According to the quantity equation, if velocity and output are constant, then an increase in the money supply leads to ______ in inflation.

the same percentage increase

The Hatfields and the McCoys both earn $50,000 per year in real terms in the labor market, and both families are able to earn a 5% real interest rate on their savings. In the year 2010, both families began to save. The Hatfields saved 8% of their income each year; the McCoys saved 10%. In 2010, the Hatfields consumed ______ more than the McCoys; in 2011, the Hatfields consumed ______ than the McCoys.

$1,000; about $960 more

If in the economy, business saving equals $240 billion, household saving equals $15 billion and government saving equals -$150 billion, what is the value of national saving?

$105 billion

If total government tax collections equal $200 billion, transfer payments equal $75 billion, and government interest payments equal $10 billion, then net taxes equal:

$115 billion.

Suppose you have $200 with which you can buy shares of stock from two companies: ABC Hot Chocolate Company and XYZ Lemonade. Each company's stock currently sells for $100 per share. If the temperature next year is lower than average, the stock price for ABC will increase by $20, and the stock price for XYZ will not change. If the temperature next year is higher than average, the stock price for XYZ will increase by $20, and the stock price for ABC will not change. There is a 50% chance that it will be colder than average next year, and a 25% chance that it will be warmer than average. If you purchase one share of ABC stock and one share of XYZ stock, your expected gain will be _______.

$15

If 50 percent of the population in a country is employed and average labor productivity equals $30,000, then real GDP per person equals:

$15,000.

In 2015, Pete Rich purchases a 1642 painting by Rembrandt for $20 million. He also pays a one percent commission to the auction house that sold the painting. What is the contribution of these transactions to GDP in the year 2015?

$200,000

Bob's Barber Shop cut 3,000 heads of hair in 2014and 3,100 in 2015. The price of a hair cut was $7 in 2014and $8 in 2015. If 2014is the base year, what was Bob's contribution to real GDP in 2014?

$21,000

In Econland, 500,000 of the 2 million people in the country are employed. Average labor productivity in Econland is $15,000 per worker. Real GDP per person in Econland totals:

$3,750.

If the desired reserve/deposit ratio is 0.25 and the banking system receives an additional $10 million in reserves, bank deposits will increase by:

$40 million.

If you left $2,500 on deposit with a bank promising to pay you a 6 percent compound annual rate of interest, then after 50 years your deposit would be worth approximately:

$46,050

If real GDP per person were equal to $2,000 in 1900 and grew at a one percent annual rate, what would be the value of real GDP per person 100 years later?

$5,410

An economy produces 500,000 tables valued at $100 each. Households purchase 100,000 tables, of which 50,000 are imported. Businesses purchase 200,000 domestically produced tables, the government purchases 100,000 domestically produced tables, and 50,000 domestically produced tables are sold abroad. At the end of the year, the table manufacturers hold the unsold tables in inventory. What is value of GDP?

$50 million

You expect a share of EconNews.Com to sell for $65 a year from now. If you are willing to pay $65.74 for one share of the stock today, and you require a return of 8%, what dividend payment must you expect to receive from the stock?

$6.00

Suppose that the total production of an economy consists of 10 oranges and 5 candy bars, each orange sells for $0.20, and each candy bar sells for $1.00. What is the market value of production in this economy?

$7.00

Peg's Manicure Manor did 4,000 sets of nails in 2010 and 4,500 sets of nails in 2011. The price of a set of nails was $20 in 2010 and $22 in 2011. If 2010 is the base year, Peg's contribution to nominal GDP in 2010 was ______ and in 2011 was _______.

$80,000; $99,000

Suppose that the total expenditures for a typical household in 2010 equaled $5,500 per month, while the cost of purchasing exactly the same items in 2015 was $6,875. If 2010 is the base year, the CPI for the year 2015 equals:

1.00

If the money supply equals 2,000, velocity equals 3, and real GDP equals 4,000, then the price level equals:

1.5.

The CPI in 1974 equaled 0.49. The CPI in 1975 equaled 0.54. The rate of inflation between 1974 and 1975 was ______ percent.

10.2

Since 1925, the longest expansion in the United States lasted:

120 months.

In a small town of 100 people, there are 10 children under 16, 10 retired people, 60 people with full-time jobs, 3 people with part-time jobs, 3 full-time students over 16, and 4 full-time homemakers. The remaining people did not have jobs, but wanted jobs. What is the unemployment rate in this town?

13.7%

Data for an economy show that the unemployment rate is 6 percent, the participation rate 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are unemployed this economy?

18.0 million

If the official CPI inflation rate is 4%, the "true" rate of inflation may be closer to ______ according to the findings of the Boskin Commission.

2%

Labor income in the U.S. equals approximately ______ of GDP.

2/3

Suppose the natural rate of unemployment is 4 percent. What is the actual rate of unemployment if actual output is 2 percent above potential output?

3 percent

The economy of Alpha operates according to Okun's law. In Alpha, potential GDP equals $500 billion, actual GDP equals $520 billion, and the natural rate of unemployment is 5 percent. What is the actual rate of unemployment in Alpha?

3 percent

If there is 2 percent frictional unemployment, 3 percent structural unemployment, and 1 percent cyclical unemployment, then the natural rate of unemployment equals:

5%.

In Macroland, currency held by the public is 2,000 econs, bank reserves are 300 econs, and the desired reserve/ deposit ratio is 10%. If the Central Bank prints an additional 200 econs and uses this new currency to buy government bonds from the public, the money supply in Macroland will increase from ______ econs to ______ econs, assuming that the public does not wish to change the amount of currency it holds.

5,000; 7,000

Which of the following is correct? A. National saving equals private saving plus public saving. B. Public saving equals national saving plus private saving. C. Private saving equals national saving plus public saving. D. National saving equals public saving minus private saving.

A. National saving equals private saving plus public saving.

Which of the following is an example of the life-cycle motive for saving? A. Pat puts $400 per month in his 401(k) retirement account. B. Jordan sets aside $200 per month in case she has to pay for a new roof for her house. C. Gerry and Terry put $2,000,000 in a trust fund that will go to their children when they die. D. Chris keeps $15,000 in a money market account to pay expenses in case he loses his job.

A. Pat puts $400 per month in his 401(k) retirement account.

Which of the following is a flow? A. Saving B. Wealth C. Assets D. Money

A. Saving

Which of the following events would increase the unemployment rate, if nothing else changed? A. Unemployed workers leave the labor force. B. Employed workers leave the labor force. C. Workers from outside the labor force become employed. D. Unemployed workers become employed.

B. Employed workers leave the labor force.

Real GDP is not a perfect measure of economic well-being because it excludes the value of all of the following except: A. leisure time. B. goods and services available in the market economy. C. nonmarket economic activity. D. goods and services produced in the underground economy.

B. goods and services available in the market economy.

Which of the following is an example of an intermediate good? A. A new car sold to a family B. A metal-stamping machine used to produce cars sold to an automaker C. A new CD player sold to an automaker for installation in a car D. A new CD player sold to a teenager

C. A new CD player sold to an automaker for installation in a car

Which of the following would increase the investment component of U.S. GDP? A. You purchase a vacation at Disney World in Florida. B. You purchase shares of Disney stock. C. Disney World purchases tires for the monorail from a firm in Ohio. D. A French man purchases a vacation at a Disney theme park in France.

C. Disney World purchases tires for the monorail from a firm in Ohio.

Who of the following would be considered a discouraged worker? A. Ray wants to work forty hours per week, but can only find work for twenty hours per week. B. Anna Marie has been looking for a job every day for the last month, but has not been hired. C. Frank would like to work, but has not looked for work because he believes no jobs are available. D. Melissa has a Ph.D. in physics, but is currently employed full time driving a taxi.

C. Frank would like to work, but has not looked for work because he believes no jobs are available.

22. Which of the following is an example of frictional unemployment? A.Dora lost her job when the textile factory closed. She does not have skills to work in another industry and has been unemployed for over a year. B Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. . She expects to get her job back when the economy picks up. C. George is an unskilled worker who mows lawns in the summer, but is unemployed the rest of the year. DHector looked for a job for five weeks after finishing college. He turned down several jobs that didn't fit his skills, . but now has a job that requires the expertise he gained in college.

D Hector looked for a job for five weeks after finishing college. He turned down several jobs that didn't fit his skills, . but now has a job that requires the expertise he gained in college.

15. Who from among the following would be classified as out of the labor force? A. Brenda Smith, an 18 year old college student employed part-time at a fast food restaurant. B. Mario Faubert, a NHL hockey player at home sick with the flu. C. Jack Little, a 21 year old new college graduate actively looking for his first job. D. Amanda Pie, a full-time homemaker.

D. Amanda Pie, a full-time homemaker.

Which of the following is a liability of a family? A. Checking account balance B. Share of stock C. House D. Mortgage

D. Mortgage

Each of the following statements describes how the political and legal environment encourages productivity except: A. Well-defined property rights encourage production and saving. B. Political stability promotes economic growth. C. Price changes in markets give suppliers incentives to supply goods to markets. D. Pay rates determined by a governmental planning agency provide workers with incentives to work hard.

D. Pay rates determined by a governmental planning agency provide workers with incentives to work hard.

Which of the following workers is least likely to lose his/her job during a recession? A. Carpenter B. Automobile assembly line worker C. Roofer D. Police officer

D. Police officer

All of the following describe trends in U.S. labor markets except: A. growing wage inequality in the United States in recent decades. B. a slowdown in real wage growth since the 1970s. C. substantial growth in the level of employment in the United States since 2000. D. substantial growth in real ages during the last century.

D. substantial growth in real ages during the last century.

Elaine owns a beautiful diamond ring she purchased for $2,500. When she has it appraised she learns that it is now worth $3,000. Based on this information:

Elaine has experienced a $500 capital gain.

______ is/are the market value of final goods and services produced within a country during a given period of time.

GDP

Assume one investor bought a 10-year inflation-protected bond with a fixed annual real rate of 1.5% and another investor bought a 10-year bond without inflation protection with a nominal annual return of 4.2%. If inflation over the 10-year period averaged 2 %, which investor earned a higher real return?

The investor who purchased the bond without inflation protection.

A boom is:

a particularly strong and protracted expansion.

Slower growth in labor demand in combination with increases in labor supply explains ____________ accompanied by __________.

a slowdown in real wage growth; rapid employment growth

If you put a $20 bill in the pocket of your winter coat at the beginning of spring so that you will be surprised when you find it again next winter, you are using money as:

a store of value.

Private saving is positive when:

after-tax income of households and businesses is greater than consumption expenditures.

Most economists generally argue ______ trying to block technological advances because these technological advances ______.

against; are necessary for improved standards of living

Unemployment insurance contributes to structural unemployment by:

allowing unemployed workers to search longer or less intensively for jobs.

The demonstration effect suggests that people will save less when they

base their spending decisions (and consequently their saving decisions) on spending decisions of others who spend more than they do.

A country's actual output ______ its potential output

can only temporarily exceed

Factories and machines are examples of:

capital goods

Profits, rents, interest, and royalties are examples of:

capital income.

Bank reserves are:

cash and similar assets held to meet depositor withdrawals or payments

Workers whose spells of unemployment are broken up by brief periods of employment or withdrawal from the labor force are referred to as ______ workers

chronically unemployed

Shares of stock are:

claims to partial ownership of a firm.

Suppose the value of the CPI is 1.100 in year one, 1.210 in year two, and 1.331 in year three. Assume also that the price of computers increases by 3% between year one and year two, and by another 3% between year two and year three. The price level is increasing, the inflation rate is _______, and the relative price of computers is _________.

constant; decreasing

The four components of aggregate expenditures are:

consumption investment government spending net exports.

Spending on durable goods, nondurable goods, and services is included in:

consumption expenditures.

Saving equals:

current income minus spending on current needs.

A nation's saving equals its ______ income less its spending on _______.

current; current needs

According to Okun's law, each extra percentage point of ______ unemployment is associated with a ______widening of a negative output gap, measured in relation to potential output.

cyclical; 2 percent

Your financial investments consist of U.S. government bonds maturing in twenty years and shares in a start-up internet company. If interest rates on newly-issued government bonds increase, then the price of your bonds will ______ and the price of the shares you own will ____.

decrease; decrease

Initially, workers in the shoe industry and the computer industry earn the same wage. Reductions in trade barriers give domestic consumers access to cheaper shoes produced abroad, so domestic shoe prices fall. At the same time, foreign consumers purchase more computers, raising the relative price of computers. As a result of these changes, wages in the shoe industry ______ and wages in the computer industry ______.

decrease; increase

A factory worker earned $10 an hour in 1980. The CPI was 0.82 in 1980. The same factory worker was earning $15 an hour in 1990 when the CPI was 1.31. From 1980 to 1990, the factory worker's hourly real wage:

decreased from $12.20 to $11.45.

A decrease in the perceived riskiness of Company A stock ______ the risk premium investors require to purchase Company A stock and ______ the price of Company A stock.

decreases; increases

Real GDP per person can increase:

if the share of population employed and/or average labor productivity increases.

Government support of basic research by funding scientists through the National Science Foundation is an example of a government policy to promote economic growth by:

improving technology.

In the twentieth century, average real wages have risen substantially:

in industrial countries including the United States.

Falling growth rates during the 2007-2009 recession occurred:

in the United States, Canada, Germany, the United Kingdom, and Japan.

Holding other factors constant, a technological improvement that increases the marginal product of capital will:

increase investment.

Holding other factors constant, if a change in tax laws discourages people from saving more for retirement, then the real interest rate will ______ and the equilibrium quantity of saving and investment will _____.

increase; decrease

Holding other factors constant, if computers allow factory workers to manufacture more products per hour, then the real wages of factory workers will ______ and employment of factory workers will _____.

increase; increase

If the price of motel rooms increases by 10% while the prices of other goods and services increase by 5% on average, the relative price of motel rooms has:

increased

The introduction of credit cards and debit cards has ______ velocity.

increased

Real wages increased in industrialized countries in the twentieth century because the demand for labor:

increased more rapidly than the supply of labor increased.

The price of a gallon of gasoline at the pump increased by 10 percent at the same time that the inflation rate was 5 percent. The nominal price of gasoline _____, and the real price of gasoline _____.

increased; also increased

Chris pays $10,000 for a newly issued two-year government bond with a $10,000 face value and a 6 percent coupon rate. One year later, after receiving the first coupon payment, Chris sells the bond. If the current one-year interest rate on government bonds is 7 percent, then the price Chris receives is:

less than $10,000.

A college graduate in 1972 found a job paying $7,200. The CPI was 0.418 in 1972. A college graduate in 2005 found a job paying $28,000. The CPI was 1.68 in 2005. The 1972 graduate's job paid ______ in nominal terms and ______ in real terms than the 2005 graduate's job.

less; more

In the Soviet Union, firm managers had ______ incentive to reduce costs and produce better products because of ______.

little; the absence of private property rights

The key variable in determining changes in a country's standard of living is the:

long-run rate of economic growth.

Structural unemployment is:

long-term and chronic unemployment that exists even when the economy is producing at a normal rate.

The coupon rate on newly issued bonds is usually higher for bonds with ______ terms and ______ risk that the borrower will go bankrupt.

longer; greater

Globalization can increase wage inequality in the United States if international competition is primarily in industries requiring ______ workers.

low-skilled

An example of a government policy to provide a framework within which the private sector can operate productively is:

maintaining a well-functioning legal system.

The Fisher effect is the tendency for ______ interest rates to be ______ when inflation is high.

nominal; high

If the borrower and lender agree to a loan at 8% when the inflation rate is 3%, then 8% is the ______ interest rate and 5% is the ______ interest rate.

nominal; real

The most important tool of monetary policy is:

open-market operations.

Real GDP per person in Richland is $20,000, while real GDP per person in Poorland is $10,000. However, Richland's real GDP per person is growing at 1 percent per year, and Poorland's real GDP per person is growing at 2 percent per year. After 50 years, real GDP per person in Richland minus real GDP in Poorland is:

positive but less than $10,000.

A measure of the average price of a given class of goods or services relative to the price of the same goods and services in a base year is called a:

price index.

The costs of investment depend on the ______ and the _______.

price of new capital goods; real interest rate

The value of the marginal product of labor equals the marginal product of labor times the:

price of output.

Product improvements make it difficult for the statisticians who construct the CPI to distinguish between ______ changes and ______ changes.

price; quality

In the long run, total spending affects ______, and output is determined by _______.

prices; inputs and productivity

The specialized information-gathering activities that banks use to evaluate borrowers are an example of the:

principle of comparative advantage.

If net taxes paid by households increases:

private saving will decrease.

From an economic perspective, the best response to increased wage inequality is to:

provide transition aid to disadvantaged workers.

Depression and lost self-esteem are examples of the ______ costs of unemployment, while the lost income and tax revenue are examples of the ______ costs of unemployment.

psychological; economic

The government purchases component of GDP includes:

purchases of final goods and services.

The supply and demand for saving are brought into equilibrium by adjustments of the ______ rate.

real interest

The opportunity cost of capital investment is the:

real interest rate.

The wage paid to workers measured in terms of real purchasing power is called the:

real wage

If potential output for an economy equals $8 billion, and actual output equals $7 billion, then this economy has a(n):

recessionary gap.

In Macroland potential GDP equals $20 billion and real GDP equals $19.2 billion. Macroland has a(n) ______ gap equal to ______ percent of potential GDP.

recessionary; -4

Crowding out is the tendency for increased government deficits to:

reduce investment spending.

The "true" costs of inflation are:

reduced economic growth and efficiency.

Making more frequent, but smaller cash withdrawals from banks ______ the inflation losses from holding cash and ______ the shoe leather costs of inflation.

reduces; increases

Changes in the growth rate of potential output and deviations of actual output from potential output are two logical explanations for:

short-term economic fluctuations.

The slowdown in the growth of real wages in the United States since 1973 is consistent with a concurrent:

slowdown in productivity gains.

If the consumer price index increased from 1.52 to 1.65, then it must be the case that ______ relative to prices in the base year.

some prices rose and some prices fell

A long-term mismatch between the skills of some workers and the jobs available is a principal cause of ______unemployment.

structural

The introduction of new technologies to production is ______ source of productivity improvement.

the most important

The maturation date of a bond is the date at which:

the principal will be repaid.

The money supply will increase by a multiple of the increase in bank reserves created by the central bank unless:

there is 100 percent reserve banking.

The core rate of inflation excludes food and energy prices because:

these prices are most frequently responsible for short-run fluctuations in the inflation rate.