Macroecnomics

1. The future value of a deposit in a savings account will be larger

All of the above

Standard of Living

Determined by real GDP per person

Macro economists Study

EWP

If all banks in the economy have the same reserve ratio as this bank, then the value of the economy's money multiplier is

11.76

1. The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

16

1. If all banks in the economy have the same reserve ratio as this bank, then an increase in reserves of $150 for this bank has the potential to increase deposits for all banks by

1764.71

The bank's reserve ratio is

8.5 percent

1. The adult population in the town of Shelbyville is 150 thousand. If 100 thousand people are employed and 20 thousand are unemployed, then the labor force participation rate is approximately

80 percent

CPI Digit

Price of basket in a given year / price of basket in base year- all multiplied by 100

The one variable that stands out as the most significant explanation of large variations in living standards around the world is

Productivity

Which of the following is correct?

The level of real GDP per person is a good gauge of economic prosperity, and the growth rate of real GDP per person is a good gauge of economic progress.

What is measured along the horizontal axis of the graph?

The quantity of loanable funds

1. Which of the following events could explain a shift of the demand-for-loanable-funds curve from D1 to D2?

The tax code is reformed to encourage greater investment.

The position and/or slope of the Supply curve are influenced by

a. All of the above are correct.

1. Which of the following can the Fed do to change the money supply?

a. change reserves or change the reserve ratio

1. Which of the following is a source of frictional unemployment?

a. changes in the composition of demand among industries or regions

1. When the price level falls, the number of dollars needed to buy a representative basket of goods

a. decreases, so the value of money rises.

1. Diminishing marginal utility of wealth implies that the utility function

a. has decreasing slope and a person is risk averse

1. When the Fed conducts open-market purchases,

a. it buys Treasury securities, which increases the money supply.

1. Unemployment insurance

a. reduces search effort which raises unemployment.

1. Minimum wages create unemployment in markets where they create a

a. surplus of labor. Unemployment of this type is called structural.

1. Unions contribute to

a. the natural rate of unemployment but not frictional unemployment.

1. Money demand depends on

a. the price level and the interest rate.

1. Which of the following helps to reduce frictional unemployment?

all of the above

The level of real GDP person

and the growth rate of real GDP per person vary widely across countries.

1. If the equilibrium quantity of loanable funds is $56 billion and if the rate of inflation is 5 percent, then the equilibrium nominal interest rate is

between 11 percent and 13 percent

If the equilibrium quantity of loanable funds is $56 billion and if the rate of inflation is 4 percent, then the equilibrium real interest rate is

between 6 percent and 8 percent.

1. Frictional unemployment is inevitable because

sectoral shifts are always happening

CPI

the measure of the overall cost of the goods and services purchased by a typical consumer.

If the equilibrium quantity of loanable funds is $50 billion and if the equilibrium nominal interest rate is 8 percent, then

the rate of inflation is approximately 2 percent.

What is measured along the vertical axis of the graph?

the real interest rate

GDP is

the value of all final goods and services in a given period of time

1. The Bureau of Labor Statistics counts a member of a surveyed household as an adult if that person is at least

those waiting to be recalled to a job from which they had been laid off

Regard the position of the Supply curve as fixed, as on the graph. If the real interest rate is 4 percent, the inflation rate is 2 percent, and the market for loanable funds is in equilibrium, then the position of the demand-for-loanable-funds curve must be

to the left of D1

Discounting

x/1+r^n

1. . Regard the position of the Supply curve as fixed, as on the graph. If the real interest rate is 8 percent, the inflation rate is 3 percent, and the market for loanable funds is in equilibrium, then the position of the demand-for-loanable-funds curve must be

D2

Which of the following events would shift the demand curve to D1 to D2?

Firms become optimistic about the future and as a result, they plan to increase their purchases of new equipment and construction of new factories

Which of the following events would shift the supply curve from S1 to S2?

In response to the tax reform, households are encouraged to save more than they previously saved

1. Which of the following is not a central bank?

The bank of america