Unit 2.1-2.7
Based on the table which of the following is most likely correct?
A. The natural rate of unemployment is 5 percent.
The circular flow model illustrates the equality of which of the following?
A. Total expenditure and total income.
Which of the following is true about the real GPD?
B. It measures aggregate output using constant prices.
Which of the following unemployed individuals represents frictional unemployment?
B. Janet, an accounting graduate who is interviewing with a number of accounting firms.
Which of the following situations will benefit Lenders of fixed interest rate loan?
B. The actual inflation rate is less than the expected inflation rate.
GPD does Not account for which of the following?
B. The depletion of natural resources.
The table below shows the sales and intermediate purchases of automobile manufactures,glass manufactures, and steel manufactures in a country. Assuming these are the only three manufacturers in the country, which of the following is true?
B. The total value added of the glass,steel,and automobile manufactures is 100$ million.
If an economy is at the peak of the business cycle, then which of the following is true about the state of the economy?
B. There is an inflationary gap.
In 2016 the number GPD what country exports $330 billion and a GPD deflator was 110. The real GPD for 2016 was
C. 300 billion
The table below shows the cost of the same representative basket of goods in the same year 2012 and 2013, and the average weekly nominal wage in 2012 and 2013. if 2012 is the base year, which of the following is true?
C. The CPI in year 2013 is 120
Which of the following transactions will be included in the calculations of country X's Gross Domestic Product (GPD) in 2020?
C. The purchase of new construction equipment.
Gross domestic product is equal to which of the following?
C. The sum of income paid to all the factors of production.
The business cycle diagram below shows the cyclical movement of actual real GPD relative to potential real GPD overtime for the nation of Galactica. The economy of Galactica is expanding and the actual unemployment rate exceeds the natural rate of unemployment for which year in the above diagram?
C.2002
The table below shows the labor market statistics for a nation. What is the nations unemployment rate?
D. 9%
Which of the following will happen is the actual inflation rate is greater than the expected inflation rate?
D. Borrowers of fixed interest rate loans will be better off.
Which of the following allows an individual to gain from unexpected inflation?
D. Borrowing money at a fixed interest rate.
The nation of turbo land produces only two goods, X and Y.The prices and final quantities produced of the two goods in 1993 and the base year of 1992 are shown in the table below. What are the nominal GPD in the real GPD in 1993?
D. Nominal GPD is $96, real GPD is $90
As a measure of economic performance, GPD accounts for which of the following?
D. Souvenir gifts purchased by tourists domestically.
Which of the following explains why the rate of change of the consumer price index Tends to overstate the actual inflation rate?
D.Consumers tend to substitute lower priced goods that may not be represented in the basket of goods.
In 2017, Sabrina earned an annual salary of $100,000 as an engineer. In 2018, her income rose to $105,000. The inflation rate in 2018 was 2%. How did Sabrina nominal income and real income change in 2018 compared to 2017?
E. Nominal income increased and real income increased.
If a nations actual real GPD is less than potential real GPD , which of the following must be true?
E. The actual rate of unemployment exceeds the natural rate of unemployment.