Final Exam B252

If the reserve ratio is 15% and you deposit $200 in cash into your bank, then that deposit changes the money supply for your bank by $___

0

A country's growth rate is 4.0%. If the growth rate of capital accounts for 2.1%, the labor force growth rate accounts for 0.9%, and the growth rate of technology accounts for 0.6%, then the growth rate in productivity for this country is

0.4

YearPrice of CookiesQuantity of CookiesPrice of MilkQuantity of Milk2019$4100$2.001702020$5150$2.502002021$6180$3.50260 Refer to the table above showing data for an economy that produces only the goods shown. If 2019 is the base year, Real GDP for 2021 is $___

1,240

YearReal GDPNominal GDP2014$16,220.222$17,735.9332015$16,547.619$18,287.2262016$16,851.420$18,729.130 Refer to the table above. Consider the following data on nominal GDP and real GDP (values are in billions of dollars). The GDP deflator (price level) for 2015 equals ____

110.51

Indirect Business Taxes$1,200 Corporate Profits $1,500Proprietors' Income$640Rental Receipts$175Net Interest Income$650Depreciation$1,775Wage and Salary Income$8,200 According to the above table, net domestic product is $___

12,365

Imports$500Wages$700Gross private domestic investment$2,100Government purchases$2,700Consumer spending$7,600Rent$300Exports$800 Given the data above, Gross Domestic Product is $___

12,700

Market Basket2021202120222022CommodityQuantityPriceQuantityPriceApples30$740$9Beans70$690$10Carrots50$560$4 Refer to the above table. You are given information on Jia's consumption for 2021 and 2022. Using 2021 as the base year compute the price index for 2022. The 2022 price index equals___

132.95

If households receive $200 in net interest income, wages equal $9,300, rental receipts on land are $700, total business profits before taxes are $1,500, depreciation is $1,800, and indirect business taxes are $1,200, then Gross Domestic Product is $___

14,700

The above table shows the labor market for bakers. The equilibrium wage is $____ and the equilibrium labor quantity is ____ bakers.

15 (where labor supply is equal to demanded) 4

Employment: 138,381 Unemployment: 15,340 Adult Population: 236,743 Based on the information above, the Civilian Labor Force is____ and the Non-Labor Force is____

153,721 83,022

A firm sells its output for $40 per unit. When it increases its labor from 4 workers to 5 workers its output increases from 15 to 19 units. The marginal revenue product of the 5th worker is $_______.

160 (19-15=4 $*40= 160)

CategoryBillions of dollars Saving Deposits $1,887Travelers Checks$6Paper Currency in Circulation$720Money Market Deposit Accounts$420Small Denomination Time Deposits$924Coins in Circulation$50Available Credit on Credit Cards$685Checkable Deposits$920U.S. Treasury Bonds in Circulation$555Non-institution Money Market Mutual Funds$1,480 According to the table above the value for M1 is $___ billion and the value of M2 is $___ billion.

1696 6407

Assume real GDP for 2021 is equal to $15,205 billion and the 2021 GDP deflator equals 115.35. Nominal GDP for that year is $___ billion

17,538.97

Suppose that the interest rate is 3 percent. Consider three payment options: 1. $505 today. 2. $520 one year from today. 3. $550 two years from today. 4. $565 three years from today. Based on this information, ___ has the lowest present value and __ has the highest present value.

2 3

YearPrice of BurgersQuantity of BurgersPrice of SodaQuantity of SodaPrice of ShoesQuantity of Shoes2015$4100$2.00170$50402016$5130$2.50200$75502017$6160$3.50250$8060 Refer to the table above showing data for an economy that produces only the goods shown. If 2015 is the base year, Nominal GDP for 2015 is___

2,740

If a country's real GDP is $20,000 billion and that country's population is 875 million, then real Gross Domestic Product per capita is $___

22,857.14

Suppose in a closed economy GDP is $13 trillion, consumption is $8 trillion, taxes are $2 trillion and the government runs a surplus of $1 trillion. As a result, private saving is $___ trillion and public saving is $____trillion.

3 1

YearPrice of BurgersQuantity of BurgersPrice of SodaQuantity of SodaPrice of ShoesQuantity of Shoes2015$4100$2.00170$50402016$5130$2.50200$75502017$6160$3.50250$8060 Refer to the table above showing data for an economy that produces only the goods shown. If 2015 is the base year, Real GDP for 2016 is___

3,420

Suppose two countries have a per capita real GDP of $28,000 in 2019. Econoland has a growth rate of 4 percent and Macropolis has a growth rate of 3 percent. By 2022, the per capita real GDPs for Econoland is $____ and for Macropolis is $____

31,496.19 30,596.36

Suppose a bank has $2,500,000 in checkable deposits and the required reserve ratio is 15%. Also, the bank is currently holding $700,000 in total reserves. As a result, this bank's required reserves are $____ and its excess reserves are $____

375,000 325,000

If consumer spending is $20,000, gross private domestic investment is $9,500, government purchases are $11,000, exports are $2,000, imports are $3,000, depreciation is $1,900, and indirect business taxes are $1,200, then Gross Domestic Product is $___

39,500

Suppose a bank has $2,500,000 in checkable deposits and the required reserve ratio is 10%. Also, the bank is currently holding $700,000 in total reserves. As a result, the banking system can increase the money supply by $_____

4,500,000 (((.2*2500000)-700000))*1/.10)

Refer to the above table. Two countries, Microland and Macrostan have per capita real GDPs in 2020 of $6,000. Assume Microland has a 4% growth rate and Macrostan has a 5% growth rate. Based on this information, in the year 2070, country Microland's per capita real GDP is $ ____and Macrostan's per capita real GDP is $____

42,660 69,000

Suppose a bank has $2,500,000 in checkable deposits and the required reserve ratio is 10%. Also, the bank is currently holding $700,000 in total reserves. As a result, this bank can increase the money supply by $____

450,000

You earned a salary of $85,000 in 2020 and $93,000 in 2022. The consumer price index was 221 for 2020 and 230 for 2022. Based on this information, the percentage change in your real salary between these years is ____ percent.

5.13

YearPrice of BurgersQuantity of BurgersPrice of SodaQuantity of SodaPrice of ShoesQuantity of Shoes2015$4100$2.00170$50402016$5130$2.50200$75502017$6160$3.50250$8060 Refer to the table above showing data for an economy that produces only the goods shown. If 2015 is the base year, then the growth rate in Real GDP between 2015 and 2017 is___

51.09

Total Population745,000Working Age Population550,000Number of Employed372,000Number of Unemployed27,000 Using the above table, the unemployment rate is percent___

6.77%

Employment: 138,381 Unemployment: 15,340 Adult Population: 236,743 Based on the information above, calculate the Labor Force Participation Rate.

64.93

During the course of a year, the labor force consists of the same 1,450 people. Of these, 55 lack skills that employers desire and hence remain unemployed throughout the year. At the same time, every month during the year, 27 different people become unemployed, and 27 other different people who were unemployed find jobs. Also, 12 different people are unemployed due to seasonal factors. 15 people are unemployed due to the overall decline in the economy. Based on this information, the actual unemployment rate is ____%. The natural rate of unemployment is___

7.52 6.48

If Consumption = 20 billion + 0.75Yd, Investment Spending = $100 billion, Government Purchases = $100 billion, Taxes = $50 billion, Exports = $30 billion and Imports = $45 billion. If Investment Spending changes to $120, then the change in equilibrium real GDP is $___billion.

80

If Consumption = 20 billion + 0.8Yd, Investment Spending = $100 billion, Government Purchases = $100 billion, Taxes = $50 billion, Exports = $30 billion and Imports = $45 billion, then the equilibrium real GDP is $ ___billion.

825

In an economy the Price Level is 2.05, real GDP is $17.2 trillion, and the money supply (M1) is $3.7 trillion. According to the Quantity Theory of Money's Quantity Equation, the velocity of money is___

9.53 ((17.2*2.05)/3.7)

Employment: 138,381 Unemployment: 15,340 Adult Population: 236,743 Based on the information above, calculate the Unemployment Rate__

9.98

An increase in consumer spending causes the [ Select ] curve to shift to the [ Select ] .

AD, right

According to the loanable funds model, which of the following will decrease the equilibrium level of national saving and increase the equilibrium interest rate, holding everything else constant?

An increase in consumer spending.

Which of the following causes a movement along the per-worker production function?

An increase in the amount of capital.

In the LRAS/AD model, what could cause a decrease in the price level and an increase in real GDP?

An increase in the amount of workers having a greater effect than an increase in real interest rates.

Which of the following best explains a decrease in the equilibrium wage for bakers and an increase in the equilibrium quantity of bakers in Bloomington?

An increase in the number of Indianapolis bakers moving to Bloomington.

Which of the following is an example of fiscal policy?

A decrease in lump-sum taxes.

Using prices and quantities, what is the formula for real Gross Domestic Product (GDP)? Real GDP =

Base Year Price * Current Year Quantity

Which of the following tools would the Federal Reserve use to increase the money supply?

Buy bonds (U.S. Treasuries) Lower the reserve ratio. Lower the discount rate.

Refer to the above figure. All values are in thousands of dollars. The equation for the consumption function is

C = 5,000 + 0.83Yd.

In order to protect your nominal income from inflation, you should always ask for a(n)

COLA

What is the formula for a price index? The Current Year Price Index =

Curent Year Price * Base Year Quantity

Which of the following is a key to economic development?

Developing an educated population, Allowing for creative destruction, Establishing a system of property rights.

Which of the following is a key to economic development?

Encourage saving and investment. Allow foreign direct investment. Establish a system of property rights. Develop a healthy and educated population.

Which of the following would shift the consumption function down?

Expectations of harder times ahead.

2021:Q2 2021:Q3 Gross Saving & Investment:$3,093.4 $3,151.5 Interest Rate:2.93% 2.97% Using the loanable funds market model explain this change in saving, investment and interest rates from the second quarter (Q2) of 2021 to the third quarter (Q3) of 2021.

The demand for loanable funds increased.

The multiplier is the

change in equilibrium real GDP divided by the change in autonomous spending.

Which of the following is a determinant (factor) affecting the Aggregate Demand curve?

consumer spending government purchases net exports

When the unanticipated inflation rate is 2%

debitors gain at the expense of creditors

If actual real GDP is less than potential real GDP by $600 billion and for every $10 billion change in taxes changes (offsets) real planned investment expenditures by $3 billion. Based on this effect and if the MPC = 0.75, then the government should [select] taxes by $____ billion to solve the gap.

decrease 333.33

In the AD/AS model using an upward sloping SRAS, if autonomous government purchases decreases by $25 billion and the marginal propensity to save is 0.10, there is a(n) [ Select ] in equilibrium real GDP [ Select ]$ [ Select ] billion.

decrease less than 250

Using the AD-LRAS model, which of the following causes the price level to increase and real potential GDP to decrease? A(n)

decrease in the labor-force participation rate.

Using the AD-LRAS model, an increase in capital accumulation cause the price level to [ Select ] and potential real GDP to [ Select ] .

decrease, increase

An increase in wage rate [select] the quantity demanded of leisure and [select] the quantity supplied of labor

decreases increases

In the COMPLEX AD/AS model assume actual GDP is $19.1 trillion, the price level (GDP Deflator) is 220 and potential real GDP is $19.5 trillion. A year later, technology increases, inflationary expectations decreases, and the consumer spending increases. However, the technology "shock" is MORE than the expectations & consumer spending "shocks," but the inflationary expectations "shock" is MORE than the consumer spending "shock". As a results of these shocks, in the COMPLEX AD/AS model, the price level [ Select ] , output (real GDP) [ Select ] and the unemployment rate [ Select ] .

decreases increases increases

Year Government Purchases Government Taxes Real GDP14503755,00022903305,30034303205,60043504206,10054803906,30065205306,700 Suppose initially there is no public debt. Using the above table, in year 5, the government is experiencing a _____of $____ . For the first answer type in one of the following: deficit, surplus, or balanced budget Also, the public debt as a percentage of GDP in Year 3 is___ %.

deficit -90 2.62

When foreign firms decrease their purchases of U.S. Treasuries, the [ Select ]U.S. dollars [ Select ] .

demand for decreases

Using the loanable funds model, if business productivity decreases, then the [select] loanable funds shifts to the [select] .

demand for left

If the rate of returns on foreign stocks and bonds has increased relative to the rate of returns on U.S. stocks and bonds, then the value of the U.S. dollar will [select]

depreciate

Suppose the exchange rate for one Canadian dollar was $0.90 U.S. dollars. If the exchange rate for one Canadian dollar changes to $0.95 U.S. dollars, then we know the U.S. dollar has [ Select ] , the Canadian dollar has [ select] and U.S. net exports will [ Select ]

depreciate appreciate increase

If the Federal Reserve decreases the discount rate, then the U.S. dollar [select] and domestic goods become [select] , thereby [select] net exports.

depreciates less expensive increasing

When the Federal Reserve increase the money supply, the U.S. dollar

depreciates and U.S. net exports increase.

The demand for a currency is

derived from the demand for that country's goods, services, and assets.

In the money market, an increase in the demand for money [select] the equilibrium quantity of money and [select] the equilibrium interest rate.

does not change increases

If a firm's production is a function of labor, then a decrease in the amount of technology causes a(n) [select] of the firm's production function.

downward shift of

The demand for labor depends on which of the following?

The marginal productivity of labor the marginal revenue from selling the additional output.

Keynesian economists argue prices and wages

are subject to downward "stickiness."

The time between the implementation of a policy and its intended result is referred to as the [select] time lag.

effect

Which of the following is a negative effect of economic growth?

environmental pollution, income inequality, global warming

Which of the following are keys to economic development?

establishing a system of property rights. open economies. an educated work force

The period between the business cycle trough and business cycle peak is called a(n)

expansion

When the price level declines, the interest rate

falls, consumers borrow more funds, which causes a movement down along the aggregate demand curve.

According to the Balance of Payments, if the current account is $100 billion, then the [ Select ] account must be $ [ Select ] billion.

financial -100

A 0.5 percent change in the growth rate

has a significant effect on long-run real GDP over time.

Economic growth tends to be higher in a country that

has an open economy that encourages the rapid spread of technology.

Which of the following factors affect the Aggregate Demand curve?

imports, investment, gov purchases, consumption, exports

Unemployment is measured as all adults

in the civilian labor force who are willing and able to work and who are actively looking for work, but have not found a job.

The [select] effect explains why at higher wages, people will spend [select] time working and [select] time at leisure.

income less more

Suppose actual real GDP is $19.7 trillion and potential real GDP is $19.6 trillion. To close this gap through fiscal policy, the government should [select] in order to [select] .

increase taxes decreases AD

In the LRAS/AD model, if consumer spending [select], then the equilibrium price level will increase and equilibrium real GDP will [select]

increase, remain unchanged

If your income rises at 5% and inflation has risen at 3%, then the purchasing power of your income has

increased

If the government increases purchases by $10 million and the MPS = 0.25, then real GDP [select] by ____billion.

increases $40

If the government simultaneously increases its purchases by $30 billion and increases taxes by $30 billion. If the MPC is equal to 0.75, the government's action [ Select ] real GDP by $ [ Select ] .

increases 30

If the reserve ratio is 25% and Federal Reserve buys $100,000 in U.S Treasury bonds, then the money supply for the banking system_____ by $_____ .

increases 400000

Using the AD/AS model, expansionary monetary policy [select] the [select] curve(s), [select] the price level, and [select] real GDP.

increases AD increases increases

Due to a recovery, consumer spending increases. As a result, according to the loanable funds model, the equilibrium interest rate [ Select ] and the level of investment [ Select ] .

increases decreases

In the LRAS/AD model, a decrease in the amount of technology [select] the price level and [select] real Gross Domestic Product (GDP).

increases decreases

The demand for bakers increases. As a result, the equilibrium wage for bakers [select] and the equilibrium quantity of bakers [select].

increases increases

Using the Complex AD/AS model, from an initial long-run equilibrium, if aggregate demand grows more quickly than long-run and short-run aggregate supply, then the Federal Reserve would most likely [select] the reserve ratio, [select] U.S. bonds, and [select] the discount rate.

increases sells increases

The long-run aggregate supply curve

indicates the level of output (GDP) that occurs when resources are fully employed.

Suppose the price level is 151, potential real GDP is $18.7 trillion, and actual real GDP is $18.9 trillion. We can conclude there is a(n) [ Select] gap and [ Select ] will [ Select ] until [ Select ] is $18.7 trillion

inflationary wages increase actual real GDP

The opportunity cost of holding money is the

interest foregone from holding another financial asset.

The benefit of holding money is

its liquidity

Which of the following are determinants of labor supply?

job qualifications non-wage benefits demographics

Which of the following contributes to long-run economic growth? An increase in____

labor productivity

Which of the following is related to a surplus in the labor market

labor quantity demanded is less than labor quantity supplied it is also known as unemployment

When Country X has high economic growth, this country has a

large increase in per capita real Gross Domestic Product (GDP).

A decrease in the amount of money in circulation would cause a [select] the [select] curve.

leftward shift of aggregate demand

If there is a decrease in the U.S. endowment of factors of production, then there would be a(n) [select] the [select] curve(s).

leftward shift of short run and long-run aggregate supply

When you deposit your money into a bank, you are

lending indirectly.

According to Keynesian theory, the most important determinant of saving and consumption is the

level of real disposable income.

Which of the following is a benefit of long-run economic growth? An increase in___

living standards and leisure time

In the AD/AS model, if inflationary expectations increase and government purchases decreases, then the price level [select] and real GDP and employment [select] .

may increase, decrease or remain unchanged decreases

In the LRAS/AD model, if government purchases increase while the level of productivity increases, then the price level [ Select ] , real GDP [ Select ] and employment [ Select ] .

may increase, decrease, or remain unchanged increases increases

An decrease in the price level causes a _______ the Aggregate Demand curve.

movement down along

A decrease in the amount of labor causes a(n) [select] the marginal product curve.

movement up along

If a firm's production is a function of labor, then an increase in the amount of labor causes a(n) [SELECT] of the firm's production function.

movement up along

According to the circular flow model, the total expenditure and total income

must equal each other

The total factor payments to all resource owners is called

national income

The best measure of long-run economic growth adjusts

nominal GDP for inflation and population.

A worker who decides to quit their job and go to law school full time is considered to be

not in the labor force

If Julie is retired and works on her crossword hobby at home, then she is considered

not part of the labor force

Which of the following are determinants of labor demand?

number of firms technology physical capital

The determinants (factors) affecting the Long-run Aggregate Supply curve are

number of resources education technology productivity saving

Long-run economic growth is represented by

potential real GDP

The Long-Run Aggregate Supply curve represents

potential real GDP

Demanding money for unforeseen or emergency expenses is known as the [select] demand for money.

precautionary

Which of the following are explanations for wage differences?

preferences education compensating differentials customer discrimination

Assume the nominal exchange rate for the domestic U.S. dollar is 1€ = $1, if the price level in the United States increases relative to the European Union, then the [select] exchange rate [select] .

real increases

Which of the following is a primary tool of the Federal Reserve?

the reserve ratio open market operations the discount rate

According to the Circular Flow Model, in every exchange the buyer pays [select] amount than the seller receives.

the same

The marginal revenue product of labor is the change in [ Select ] from [ Select ] .

total revenue hiring one more worker

Which of the following are types of money demand? Choose all that apply.

transaction demand asset demand precautionary demand

What is the formula for the unemployment rate? The unemployment rate =

(unemployed/labor force) * 100

Refer to the above figure. All values are in thousands of dollars. At an income of $10,000, saving is $[value].

-3,000

During the course of a year, the labor force consists of the same 1,450 people. Of these, 55 lack skills that employers desire and hence remain unemployed throughout the year. At the same time, every month during the year, 27 different people become unemployed, and 27 other different people who were unemployed find jobs. Also, 12 different people are unemployed due to seasonal factors. 15 people are unemployed due to the overall decline in the economy. Based on this information, the cyclical unemployment rate is ___%

1.03

The annual rate of inflation averaged 3.22% during the past decade, but borrowers and lenders anticipate that the price level will rise at a rate of 4.37% next year. The current nominal interest rate is 6%. The (anticipated) real rate of interest for the next year is ___ percent

1.63

Question 91 / 1 pts The real rate of interest equals 8%, and the expected rate of inflation equals 2%. The nominal rate of interest is___

10

Using the information above, the balance of trade is $ billion and net exports is $ billion. Also, the current account is $ billion and the financial account is $ billion.

10 (Exports of good-imports of goods) 40 (exports + imports) 5 -50 (U.S. Capital Sent Abroad$-Capital Coming into U.S)

Suppose the economy has only three goods. YearPrice of BurgersQuantity of BurgersPrice of SodaQuantity of SodaPrice of ShoesQuantity of Shoes2015$4200$150$50402018$5200$160$7550 Assume the base year is 2015. Based on the information above, the price index for 2015 is___ and the price index for 2018 is ____

100 142.11

Which of the following is an account in the Balance of Payments? Choose all that apply.

Financial accounts Capital accounts Current accounts

Which of the following is a function of the Federal Reserve?

Hold bank deposit reserves Collect and clear checks Regulate the money supply

If the economy is experiencing an inflationary gap, then which of the following is a proper Federal Reserve response to close this gap?

Increase the discount rate. sell U.S bonds

An increase in long-run economic growth is illustrated by the _______ curve shifting _______.

Long-Run Aggregate Supply; right

If the United States has a net export surplus, which of the following must be true?

Net foreign investment is positive. Net capital flows is negative. National domestic saving is greater than investment.

Which of the following is an assumption of the Classical Model?

People are motivated by self-interest.

Which of the following is a determinant of long-run economic growth?

Productivity Number of resources Technology Education Saving

Long-run changes to the exchange rate are primarily determined by

Purchasing Power Parity.

Which of the following is a function of the Federal Reserve? Choose all that apply.

Regulates the money supply Holds depository institutions reserves Acts as the "lender of last resort"

What it the relationship between Saving (S) and Investment (I) when the economy is open to international trade?

S = I + NFI (Net Foreign Investment)

Which of the following are one of the stages of economic development?

Services Agricultural Manufacturing

Which of the following is an assumption of the Classical Model?

Wages and prices are flexible pure competition exists people are motivated by self-interest

What is the formula for measuring the expenditure approach to measuring GDP (Y)?

Y = C + I + G + exports - imports

Which of the following is not included in GDP?

You win $20 in a poker game and don't report the income.

In the AD/AS model assume 2021 began with potential real GDP = $19.5 trillion, while actual real GDP = $18.9 trillion and the Price Level (GDP Deflator) = 201. A year later the Price Level = 205 and actual real GDP = $19.2. Based on their relative effects on the AD/AS model, which of the following scenarios best explains this new outcome? The effect of

a decrease in productivity is LESS than the effect of decreased interest rates.

If the government spends less than what it receives in taxes during a given time period, then the result is

a government budget surplus.

What are the two things a bank primarily does? Choose all that apply.

accept deposit grant loan

Which of the following would cause the long-run aggregate supply curve to shift to the right?

an increase in saving an increase in education

In the AD/AS model, assume potential and actual real GDP is $17.5 trillion. If interest rates decrease, then

an inflationary gap occurs.

The largest category recording international transactions among countries is

balance of payments

Suppose for each 0.25-percentage-point decrease in the equilibrium interest rate induces a $12.5 billion increase in real planned investment spending by businesses. In addition, the investment multiplier is equal to 4, and the money multiplier is equal to 10. Furthermore, every $25 billion decrease in the money supply brings about a 0.25-percentage-point increase in the equilibrium interest rate. Using the information above, if actual GDP is $18.4 trillion and potential GDP is $18.9 trillion, then this economy is experiencing a(n) _____gap of $_____ billion. As a result of this gap, real planned investment spending should increase by $_____ billion. In order to change real planned investment spending by that amount, the money supply for the banking system must increase by $____ billion. In order to change the money supply by that amount, the Fed buys $____billion in bonds.

recessionary 500 125 250 25 (chegg has work)

Which of the following is a type of unemployment?

seasonal, structural, cyclical, frictional

If the Federal Reserve wants to decrease the money supply, then it should

sells U.S bond increase the required reserve ratio

Using the AD-LRAS model, an increase in capital accumulation and a decrease in business taxes causes the Long-Run Aggregate Supply curve to [select] and the Aggregate Demand curve to [select] , respectively.

shift right, shift right

Technological change will

shift the per-worker production function up.

Long-run economic growth is typically associated with a country's

standard of living

Which of the following is a characteristic of money? Choose all that apply.

store of value medium of exchange standard of deferred payment unit of accounting

A welder loses his job when the factory is replaced with a hospital looking for specially trained nurses. This is an example of [select] unemployment.

structural

Collin has lost his job with a telemarketing company, which has moved its operation to India. Collin is considered

structurally unemployed

Using the balance of payments, a sale of U.S. bonds to foreign residents is recorded as a [ Select ] in the [ Select ] account.

surplus financial

Which of the following factors affect the Long-Run Aggregate Supply curve?

technology, human capital, labor and physical capital, productivity, saving

Which of the following is an important factor affecting positive economic growth? An increase in

technology, productivity, education

Deflation is the situation when

the average of all prices is declining.

A Big Mac costs $4.00 in the United States and 7.00 Euros in Germany. If the exchange rate is $1 = 1.5, then purchasing power parity predicts the U.S. dollar is [ Select ] . In the long-run, the demand for U.S. dollars will [ Select ] and the value of the U.S. dollar will [ select ] .

undervalued increase appreciate

An example of an automatic stabilizer is

unemployment compensation.

If the duration of unemployment in a country increases from 16 weeks to 18 weeks, then the

unemployment rate will increase

When comparing the $3 price for a gallon of milk to a $2.75 price for a gallon of gasoline, money functions as a

unit of accounting

Which of the following items is included in GDP?

value of medical service

What is the formula for measuring the income approach to measuring GDP (Y)? Y =

wages + rent + interest + profit + depreciation + indirect business taxes

The formula for the multiplier effect of a change in the money supply from a deposit is

Δ money supply = money multiplier * Δ excess reserves