macro economics final

in the economy in talikastan in 2015 what was consumption

$1370

the following diagram shows the domestic demand and supply in a market. Suppose the price is $10 what is total surplus?

$2000

which of the following is not included in gdp

oranges sold by a farmer to a grocery store.

which of the following both shift aggregate demand right

a. net exports rise for some reason for some reason other than a price change and government purchases rise

the bureau of labor statistics u-3 measure of joblessness

a true

the interest rate would fall and the quantity of money demanded would

a. increase if there was a surplus in the money market

actively managed mutual funds usually fail to outperfom index funds, and this fact provides evidence in favor of the efficient markets' hypothesis

a. true

if the cpi was 125 this year and 120 last year then

all of the above are correct

when a country that exported a particular good, abandons a free-trade policy and adopts a no trade policy

producer surplus increases and total surplus decreases for that good

this figure illustrates the market for rice in vietnam. Vietnam's gains from trade amount to

1500

if the cpi was 95 in 1955 and is 475 today, then 100 today purchases what in 1955

20.00 in goods and services

he following table shows some values of the Consumer Price Index and the corresponding inflation rates for 2012-2015. The value of the Consumer Price Index in 2011 was approximately

224.9

the fed increases reserves if it conducts open market

a. purchases or lowers the federal funds rate

if the central bank keeps the money supply growth rate constant, but people raise their inflation expectations by one percentage point then the short run philips curve shifts

a. right and the unemployment rate rises

during recessions

a. sales and profits fall

Suppose that monetary neutrality and the Fisher effect both hold. An increase in the money supply growth rate increases

a. the inflation rate and the nominal interest rate by the same number of percentage points

the economy will move to a point on the short run phillips curve where unemployment is higher if

a. the inflation rate decreases

the misery index is calculated as

a. the inflation rate plus the unemployment rate

according to the theory of efficiency wages, it may be profitable for firms to keep wages high even in the presence of a surplus of labor

a. true

other things the same, which of the following could be a consequence of an appreciation of the U.S. real exchange rate

b. Nick, a U.S. citizen..

some people argue that there are advantages to keeping a mutual fund. which of the following does the evidence show

b. diversification does reduce risk, but mutual funds do not usually outperform the market

the theory of short run economic fluctuations is uncontroversial

b. false

which of the following is generally an opportunity cost of investment in human capital

b. forgone present wages

a situation in which the feds target interest rate has fallen as far as it can fall is sometimes described as

b. liquidity trap

a bond buyer is a

b. saver. long term bonds have more risk than short term bonds

if canada goes from a large budget deficit to a small budget deficit it will

c increase public savings and so shift the supply loanable funds right

which of the following games might a risk-averse person play

c. a game where they have 60% chance at winning 1 dollar and 40% chance of losing a dollar

which of the following is an example of an adverse supply shock?

c. a worldwide drought

suppose congress passes an investment tax credit that increases the quantity of investment goods that firms demand at any given interest rate. which of the following would you expect to occur as a result of this change?

c. in the short run, unemployment will decrease and inflation will rise

John is a stockbroker. He has had several job offers, but he has turned them down because he thinks he can find a firm that better matches his tastes and skills. Curtis has looked for work as an accountant for some time. While the demand for accountants doesn't appear to be falling, there seems to be more people applying than jobs available.

c. john is frictionally unemployed and curtis is structurally unemployed

When the money market is drawn with the value of money on the vertical axis, the price level decreases if

c. money demand shifts right or money supply shifts left

disinflation is defined as

c. reduction in the rate of inflation

banks advertise

c. the nominal interest rate, which is how fast the dollar value of savings grows

which of the following is inconsistent with the others

c. the purchase of foreign assets by this country's residents exceed foreigner's purchases of this country's assets

when we measure and record economic value, we use money as the

c. unit of account

milton friedman and edmund phelps argued in the late 196os that in the long run the philips curve is

c. vertical , which implies that monetary and fiscal policy cannot influence the rate of unemployment in the long run

which of the following equations is correct

c.) S= I + NCO

an event that directly affects firms costs of production and thus the prices they charge is called

d. a supply shock

which of the following both increase the money supply

d. decrease in discount rate and decrease in interest rate on reserves

other things the same an increase in wages above their equilibrium level

d. increases structural unemployment and increases the natural rate of unemployment

A country has a trade deficit. Its

d. net capital outflow must be negative, and saving is smaller than investment

the price level is a

d. nominal variable

at the broadest level, the financial system moves the economy's scarce resources from

d. savers to borrowers

which of the following does not help explain the direction the quantity of aggregate goods demanded changes when price level decreases

d. the dollar appreciates relative to other currencies

suppose OPEC is unable to come to an agreement regarding oil production and as a result the price of oil drops. which of the following would you expect to occur as a result of this favorable supply shock?

d. the short run phillips curve will shift to the left and the unemployment rate will decrease

in the actual economy households

divide their income among spending, taxes, and saving.

the gdp deflator is the ratio of

nominal GDP to real GDP multiplied by 100

suppose that there are diminishing returns to capital suppose also that two countries are exact same except one has more capital per worker and so it has more real GDP per worker than the other. Finally, suppose that the saving rate in both countries increases from 4 to 7 percent. over the next 10 years we would expect that

the country with less capital per worker will grow faster.

jamaica has a comparative advantage in the production of aluminum. They currently don't allow international trade, we can conclude that:

the domestic price for aluminum is lower than the world price for aluminum

economists use the term inflation to describe a situation in which

the economy's overall price level is rising