PRIN OF MACROECON
PRIN OF MACROECON ECO 2013
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This 6 page Class Notes was uploaded by Elmore Funk on Thursday September 17, 2015. The Class Notes belongs to ECO 2013 at Florida State University taught by Joseph Calhoun in Fall 2015. Since its upload, it has received 173 views. For similar materials see Macroeconomics in Economcs at Florida State University.
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Date Created: 09/17/15
Q72 Y C l G X Which of the 4 is the biggest component ofGDP 1 Consumption 2 Investment 3 Government purchases 4 Net Exports Q73 If a used car dealer purchases a used car for 3000 refurbishes it and sells it for 8000 the 1 Dealer contributes value added equal to 5000 but nothing is added to GDP 2 Dealer contributes value added equal to GDP 3 Dealer contributes nothing to production bc only existing goods are involved 4 Dealer contributes value added to 8000 but only 5000 is added to the GDP Q75 PMA An Americanowned McDonald s opens in Russia How would the net revenue earned by the restaurant affect the GDP and GNP ofthe United States 1 GNP increases 2 GNP decreases 3 GNP stays the same 4 GDP increases 5 GDP decreases 6 GDP stays the same Q76 Gas prices are about the same now as in 1980 1 True dueto inflation 2 False Q77 ifthe GDP deflator in 2006 was 130 compared to a value of 100 during the 1996 base year this would indicate that 1 The inflation rate during 2006 was 30 2 The general level of money during 2006 was 30 higher than during 1996 3 The inflation rate during 2006 4 Nominal GDP grew by 30 during 2006 5 Real GDP grew by 30 in 2006 than in 1996 Q78 Suppose the CPI for Year X is 130 This means the average price of goods and services is Currently 130 130 more in Year X than in the base year 130 more in the base year than in Year X PWN Prices were 30 more in Year X than in the base year Q81 MA The recessionary phase in business cycle is characterized by PWN Decreasing real output Increasing real output Decreasing unemployment Increasing unemployment Q82 The expansionary phase ofthe business cycle is characterized by PWE J Decreasing real output and increasing unemployment Decreasing real output and decreasing unemployment Increasing real output and increasing unemployment Increasing real output and decreasing employment Q83 Which of the following would be most likely to reduce the rate of unemployment 2 P5 A business recession An internet job listing system that makes it easier to get info about job openings and available employees An increase in unemployment compensation benefits A rise in minimum wage Q84 Which of the following would be officially classified as unemployed 1 4 A school administrator who has been working as a substitute teacher one day per week while looking for a full time job in administration A mathematician who returned to graduate school after failing to find a job the last four months A 60yearold former steel worker who would like to work but has given up actively seeking a job A laid off construction worker waiting to return to a previous job Q85 Which of the following would be officially classified as unemployed 1 A school administrator who has been working as a substitute teacher one day per week while looking for a full timejob in administration A mathematician who returned to graduate school after failing to find a job the last four months A 60yearold former steel worker who would like to work but has given up actively seeking a job A laid off construction worker waiting to return to a previous job Q86 Jacqueline a brilliant PHD in economics has turned down manyjob offers because she hopes to eventually to teach at one of the top ten universities in her field The type of unemployment she is experiencing is PWNquot Frictional Structural Seasonal Cyclical Q87 MA Which of the following are false 1 U PP quot When a dynamic labor market is operating efficiently mostly cyclical unemployment will be present Some unemployment will be present when a dynamic labor market is operating efficiently When full unemployment is present the rate of unemployment will be 0 When full employment is present there will not be any frictional unemployment When full employment is present it will be impossible to sustain the current rate of output in the futre Q812 Which ofthe following is a positive effect ofjob search and the unemployment that often accompanies it 1 It keeps wages and income levels low 2 It permits individual to better match their skills and preferences with the requirements of ajob 3 It reduces the wage gap between high skills 4 It creates political pressure for an increase in the minimum wage which will reduce the rate of unemployment in the long run Q813 Full employment is the situation in which the economy operates at an unemployment rate equal to the sum of 1 2 3 4 Structural and frictional unemployment Cyclical and frictional unemployment Structural and cyclical unemployment Structural frictional and cyclical unemployment Q815 Actual GDP will be below potential GDP PWN When the economy is at full employment During an economic boom When resources are fully utilized Duringa recession Q816 Suppose you received a 3 increase in your nominal wage Over the year inflation ran about 6 Which ofthe following is true 1 Your real wage fell 2 Your nominal wage fell 3 Both your real and nominal wages decreased 4 Although your nominal wage fell your real wage increased 5 Both real and nominal wages increased Q817 Suppose you received a 5 increase in your nominal wage Over the year inflation ran about 2 Which of the following is true 1 Your real wage fell 2 Your nominal wage fell 3 Both your real and nominal wages decreased 4 Although your nominal wage fell your real wage increased 5 Both real and nominal wages increased Q818 During periods when inflation rate fluctuates widely 1 All relative prices increase at the same rate leaving money prices constant 2 Economic efficiency increases bc decision makers pay closer attention to changes in money prices 3 Uncertainty about changes in relative prices cause a decrease in economic efficiency 4 All dollar prices increase at the same rate leaving relative prices constant Q91 For an economy aggregate demand at the same rate leaving relative prices constant Consumption investment government purchases exports Consumption investment government purchases exports imports Consumption investment taxestransfers exportsimports bUJNH Consumption investment government purchases imports exports Q92 MA Ceteris parabis a decrease in the US prices level will cause An increase in US exports An increase in US imports The aggregate demand curve to shift to the right The aggregate demand curve to shift to the left An increase in aggregate quantity demanded A decrease in aggregate quantity demanded The purchasing power of consumers to rise mwowewwe The purchasing power of consumers to fall Q93 Which of the following helps explain why the aggregate demand curve slopes downward 1 If the price level increases the purchasing power of fixed quantity of money decreases causing people to buy less 2 If the price level increases the purchasing power of the fixed quantity of money increases causing people to buy more 3 If domestic prices increase we substitute domestic goods for imported goods 4 If domestic prices decrease we substitute imported goods for domestic goods Q94 In the context of aggregate supply the short run is defined as the period during which 1 Some prices are set by contracts and cannot be adjusted 2 Prices can change but neither aggregate supply nor aggregate demand can shift 3 Individuals have sufficient time to modify their behavior in response to changes in relative prices 4 Quantity changes cannot occur in response to changes in relative prices Q95 In the context of aggregate supply the long run is defined as the period during which 1 Some prices are set by contracts and cannot be adjusted 2 Prices can change but neither aggregate supply nor aggregate demand can shift 3 Individuals have sufficient time to modify their behavior in response to changes in relative prices 4 Quantity changes cannot occur in response to changes in relative prices Q98 Other things constant an increase in resource prices will 1 Increase the demand for goods and services 2 Increase the cost of producing goods and services which will lead to a higher price level 3 Reduce costs and improve profits margins which will lead to an increase in aggregate supply in the goods and services market 4 Cause the natural rate of unemployment to rise Q99 Which of the following is the most accurate statement about real and nominal interest rates 1 Real interest rates can be either positive or negative but nominal interest rates must be positive 2 Real interest rates and nominal interest rates must be positive 3 Real interest rates must be positive but nominal interest rates can be either positive or negative 4 Real interest rates and nominal interest rates and nominal interest rates can be either positive or negative Q910 Which of the following would generate a dollar demand for the Euro 1 American exports to Europe 2 European demand for US government bonds 3 Americans demands for European real estate 4 All of the above Q911 MA If the dollar price ofthe English pound goes from 175 to 150 then 1 The dollar has appreciated against the pound 2 The dollar had depreciated against the pound 3 The pound has appreciated against the dollar 4 The pound has depreciates against the dollar Q912 MA lfthe dollar price ofthe English pound goes from 175 to 200 then 1 Americans will find English goods cheaper 2 Americans will find English goods more expensive 3 The English will find American goods cheaper 4 The English will find the American goods more expensive Q913 An appreciation in the US dollar would Encourage foreigners to make investments in the US Discourage foreign consumers from buying US goods Increase the number of dollars it would take to buy a Swiss franc bUJNH Encourage foreigners to buy more US goods
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