Quiz
Macro-Econ Final
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Fragen in diesem Quiz (77)
1GDP is defined as the
- Avalue of all goods and services produced within a country in a given period of time
- Bvalue of all final goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time
- Cvalue of all goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time
- Dvalue of all final goods and services produced within a country in a given period of time
2Gross domestic product measures
- Aincome but not expenditures
- Bexpenditures but not income
- Cboth income and expenditures
- Dneither income nor expenditures
- Aincome but not expenditures
3Grapes are considered intermediate goods
- Aif the purchaser eats them, but not if the purchaser uses them to make wine to see
- Bif the purchaser uses them to make wine to sell others but not if the purchaser eats them
- Cwhether the purchaser uses them to make wine to sell or eats them
- DNone of the above is correct
4Which of the following transactions adds to U.S. GDP for 2010?
- AIn December 2010, Isabella eats onions that she harvested from her backyard garden in October 2010
- BIn 2010, Ashley sells a car that she bought in 2006 to William for $5,000
- CAn American professor teaches Economics in China during the summer of 2010 and earns the equivalent of $8000 during that time
- DIn February 2010, Amanda buys a ticket for $10 to visit a zoo in Florida
5In the economy of Ukzten in 2010, consumption was $5000, exports was $100, government purchases were $900, imports were $200, and investment was $1000. What was Ukzten's GDP in 2010?
- A$6800
- B$6700
- C$7200
- D$7000
6Which of the following is NOT included in the consumption component of GDP?
- AAunt Jane buys a new house
- BBill buys a pizza for dinner
- CBob pays his tuition and fees for college
- DYou get a nice haircut
7Darnell's employer upgrades all of its computer systems using U.S. made parts. Which component of GDP is this transaction included?
- AConsumption
- BInvestment
- CGovernment Expenditure
- DNet Exports
8If in some year real GDP was $25 billion and nominal GDP was $30 billion, what was GDP deflator?
- A120
- B83.33
- C1.2
- D0.833
9Changes in nominal GDP reflect
- Aonly changes in prices
- Bneither changes in prices nor changes in the amounts being produced
- Conly changes in the amounts being produced
- Dboth changes in prices and changes in the amounts being produced
10When studying changes in the economy over time, economists want a measure of the total quantity of goods and services the economy is producing that is not affected by changes in the prices of those goods and services. In other words, economists want to study
- AGNP
- Bthe GDP deflator
- Creal GDP
- Dnominal GDP
11Which of the following statement about GDP is correct?
- ANominal GDP values production at constant prices, whereas real GDP values production at current prices
- BNominal GDP values production at the cost of the resources used in the production process, whereas real GDP values production at market prices
- CNominal GDP values production at current prices, whereas real GDP values production at constant prices
- DNominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process
12The CPI is a measure of the overall cost of
- Athe inputs purchased by a typical producer
- Bthe goods and services produced in the economy
- Cthe goods and services purchased by a typical consumer
- Dthe stocks on the New York Stock Exchange
13The term inflation is used to describe a situation in which
- Astock-market prices are rising
- Bthe overall level of prices in the economy is increasing
- Cincomes in the economy are increasing
- Dthe economy is growing rapidly
14If the price of Spanish olives imported into the United States decreases, then there would be an effect on the value of
- Aneither the GDP deflator nor the consumer price index
- Bthe GDP deflator but not on the value of the consumer price index
- Cthe consumer price index but not on the value of the GDP delator
- Dboth the GDP deflator and the consumer price index
15Suppose that U.S. mining companies purchase German made ore trucks at a reduced price. By itself, what effect will this purchase have on the GDP deflator and on the consumer price index?
- AThe consumer price index and the GDP deflator will both fall
- BThe consumer price index and the GDP deflator will both be unaffected
- CThe consumer price index will fall, and the GDP deflator will be unaffected
- DThe consumer price index will be unaffected, and the GDP deflator will fall
16In 1983, one could buy a model radio-controlled airplane for $11.50 each. Those same planes are available today and the price increased at exactly the rate of inflation. If the CPI today is 220.5 and in 1983 was 105, what is the price of the airplane today?
- A$11.50
- B$5.48
- C$2.10
- D$24.15
17The nominal interest rate tells you
- Ahow fast the purchasing power of your bank account rises over time
- Bthe number of dollars in your bank account today
- Cthe purchasing power of your bank account today
- Dhow fast the number of dollars in your bank account rises over time
18In 2011, Sally opened an account and deposited $1000 with a nominal interest rate of 10%. A hamburger was $5 in 2011. CPI was 120 in 2011 and 129.6 in 2012. What is the purchasing power of her $1000 in 2011?
- A180 hamburgers
- B250 hamburgers
- C200 hamburgers
- D220 hamburgers
19In 2011, Sally opened an account and deposited $1000 with a nominal interest rate of 10%. A hamburger was $5 in 2011. CPI was 120 in 2011 and 129.6 in 2012. What is the inflation rate?
- A9.6%
- B8%
- C6%
- D7.4%
20In 2011, Sally opened an account and deposited $1000 with a nominal interest rate of 10%. A hamburger was $5 in 2011. CPI was 120 in 2011 and 129.6 in 2012. What is the real interest rate?
- A4%
- B2%
- C8%
- D6%
21Who is included in the labor force by the Bureau of Labor Statistics?
- AGabe, who does not have a job, but is looking for work
- BMarcus, a full-time student not looking for work
- CChris, a retired engineer not looking for other work
- DNone of the above is correct
22In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Italian adult non-institutionalized population was 51.070 million, the labor force was 24.710 million, and the number of people employed was 22.765 million. According to these numbers, the Italian labor-force participation rate and unemployment rate were about
- A48.4% and 7.9%
- B44.6% and 3.8%
- C48.4% and 3.8%
- D44.6% and 7.9%
23Unemployment that is due to a recession is
- AFrictional unemployment
- BStructural unemployment
- CCyclical unemployment
- DSeasonal unemployment
24John worked in a ski resort last winter but he got laid off in May. Curtis has looked for work as an entry-level accountant for some time. While the general demand for accountants doesn't appear to be falling, there seems to be more job openings for senior-level accountants.
- AJohn and Curtis are both seasonally unemployed
- BJohn is structurally unemployed, and Curtis is seasonally unemployed
- CJohn and Curtis are both structurally unemployed
- DJohn is seasonally unemployed, and Curtis is structurally unemployed
25Suppose that in a closed economy GDP is 11,000, consumption is 7,500, and taxes are 2,000. What value of government purchases would make national savings equal to 1,000 and at that value would the government have a deficit or surplus?
- A2,500 deficit
- B2,500 surplus
- C1,000 deficit
- D1,000 surplus
26In a small closed economy investment is $50 billion and private saving is $55 billion. What are public saving and national saving?
- A$60 billion and $5 billion
- B$50 billion and -$5 billion
- C$5 billion and $60 billion
- D-$5 billion and $50 billion
27In a closed economy, in Y is 10,000, T is 1,000, G is 3,000, and C is 5,000, then
- Athe government as a budget deficit and investment is 1,000
- Bthe government has a budget surplus and investment is 1,000
- Cthe government has a budget surplus and investment is 2,000
- Dthe government has a budget deficit and investment is 2,000
28In a closed economy, national saving is
- Aequal to investment
- Busually greater than investment
- Cusually less than investment
- Dalways less than investment
29Which of the following would a macroeconomist consider as investment?
- AMarisa purchases a bond issued by Proctor and Gamble Corp.
- BKarlee purchases stock issued by Texas Instruments, Inc.
- CCharlie builds a new coffee shop
- DAll of the above are correct
30Which list ranks assets form most to least liquid?
- A$10 bills, cars, houses, bonds
- B$10 bills, bonds, cars, houses
- Cbonds, $10 bills, cars, houses
- Dbonds, cars, $10 bills, houses
31Which of the following is included in M2 but not in M1?
- Asavings deposits
- Bcurrency
- Cdemand deposits
- DAll of the above are included in both M1 and M2
32You receive money as payment for babysitting your neighbors' children. This best illustrates which function of money?
- AUnit of account
- BLiquidity
- CStore of Value
- DMedium of Exchange
33If the reserve ratio is 5 percent and banks keep no excess reserves, then $1,000 of additional deposits can create up to (hint: get the money multiplier first)
- A$200 of new money
- B$2,000 of new money
- C$20,000 of new money
- DNone of the above is correct
34If the money multiplier is 2 and the Fed buys $50,000 worth of bonds, what happens to the money supply?
- AIt increases by $100,000
- BIt increases by $150,000
- CIt decreases by $100,000
- DIt decreases by $150,000
35To explain the long-run determinants of the price level and the inflation rate, most economists rely on the
- AQuantity theory of money
- BPrice-index theory of money
- CFisher effects
- DTheory of hyperinflation
36When the money market is drawn with the value of money on the vertical axis, if the Federal Reserve sells bonds, then the money supply curve (hint: how selling bonds changes the money supply)
- AShifts right, causing the price level to rise
- BShifts right, causing the price level to fall
- CShifts left, causing the price level to rise
- DShifts left, causing the price level to fall
37When the money market is drawn with the value of money on the vertical axis,
- Amoney demand slopes upward and money supply is horizontal
- Bmoney demand slopes downward and money supply is horizontal
- Cmoney demand slopes upward and money supply is vertical
- Dmoney demand slopes downward and money supply is vertical
38As the price level decreases, the value of money
- Aincreases, so people want to hold more of it
- Bincreases, so people want to hold less of it
- Cdecreases, so people want to hold more of it
- Ddecreases, so people want to hold less of it
39On a given morning, Franco sold 40 pairs of shoes for a total of $80 at his shoe store.
- AThe $80 is a real variable and the quantity of shoes is a nominal variable
- BThe $80 is a nominal variable and the quantity of shoes is a real variable
- CBoth the $80 and the quantity of shoes are nominal variables
- DBoth the $80 and the quantity of shoes are real variables
40Your boss gives you an increase in the number of dollars you earn per hour. This increase in pay makes
- Ayour nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage also increased
- Byour nominal wage increase. If your nominal wage rose by a greater percentage than the price level, then your real wage decreased.
- Cyour real wage increase. If your real wage rose by a greater percentage than the price level, then your nominal wage also increased.
- Dyour real wage decrease. If your real wage rose by a greater percentage than the price level, then your nominal wage decreased.
41According to the principle of monetary neutrality, a decrease in the money supply will not change
- Anominal GDP
- Bthe price level
- Cunemployment
- Dall of the above are correct
42Suppose the money supply tripled, but at the same time velocity fell by half and real GDP was unchanged. According to the quantity equation the price level
- Ais 1.5 times its old value
- Bis 3 times its old value
- Cis 6 times its old value
- Dis the same as its old value
43Under the assumptions of the Fisher effect and monetary neutrality, if the money supply growth rate rises, then
- Aboth the nominal and the real interest rate rise
- Bneither the nominal nor the real interest rate rise
- Cthe nominal interest rate rises, but the real interest rate does not
- Dthe real interest rate rises, but the nominal interest rate does not
44In which case below is the real interest rate the highest? (hints: use fisher effect equation)
- Athe nominal interest rate= 4% and inflation= 3%
- Bthe nominal interest rate= 3% and inflation= 1%
- Cthe nominal interest rate= 2% and inflation= -2%
- Dthe nominal interest rate= 1% and inflation= -4%
45Which of the following is one of the long-run economic goals?
- Aa zero unemployment rate
- Ba stable interest rate
- Chigh economic growth
- Da stable exchange rate
46Which of the following is correct?
- AEconomic fluctuations are easily predicted by competent economists
- BRecessions have never occurred very close together
- CSpending, income, and production do not fluctuate closely with real GDP
- DNone of the above is correct
47During recessions
- Asales and profits fall
- Bsales and profits rise
- Csales rise, profits fall
- Dprofits rise, sales fall
48The long-run aggregate supply curve shifts right if
- Aeither immigration from abroad increases or more people get college degrees
- Bimmigration from abroad increases, but not if more people get college degrees
- Cmore people get college degrees, but not if immigration from abroad increases
- Dnone of the above are correct
49According to Sticky-wage theory, the wage contract was determined in advance based on the expected price level. The wage was fixed in the short run. If the actual price level was higher than the expected price level, the firm would have
- Alower labor costs and lower profits. So the firm would decrease the production
- Blower labor costs and higher profits. So the firm would increase the production
- Chigher labor costs and lower profits. So the firm would decrease the production
- Dhigher labor costs and higher profits. So the firm would decrease the production
50A decrease in the expected price level shifts
- Aonly the short-run aggregate supply curve left
- Bonly the short-run aggregate supply curve right
- Cboth the short-run and the long-run aggregate supply curve left
- Dboth the short-run and the long-run aggregate supply cure right
51Which of the following is NOT included in aggregate demand? (hint: AD = C + I + G + NX)
- Apurchases of stock and bonds
- Bpurchases of services such as visits to the doctor
- Cpurchases of capital goods such as equipment in a factory
- Dpurchases by foreigners of consumer goods produced in the United States
52If marginal propensity to consume (MPC) is 0.60, how much money will the household spend to buy goods and services with $50 extra income?
- A$20, the multiplier is 2.5
- B$20, the multiplier is 1.67
- C$30, the multiplier is 2.5
- D$30, the multiplier is 1.67
53If marginal propensity to consume (MPC) is 0.60 and there is no crowding out, how much should Congress increase government spending to end the recession?
- A$50 billion
- B$160 billion
- C$240 billion
- D$300 billion
54Suppose a computer virus disables all ATM machines, making withdrawals from bank accounts less convenient. As a result, people want to keep more cash on hand. (Draw MS & MD graph and AS & AD graph) Assume policymakers do nothing, according to the theory of liquidity preference, what happens to money market?
- AMoney demand shifts right and interest rate rises
- BMoney demand shifts left and interest rate drops
- CMoney supply shifts right and interest rate drops
- DMoney supply shifts left and interest rate rises
55Suppose a computer virus disables all ATM machines, making withdrawals from bank accounts less convenient. As a result, people want to keep more cash on hand. (Draw MS & MD graph and AS & AD graph) IN AD-AS diagram, which curve shifts and in which direction?
- AAggregate supply shifts right
- BAggregate supply shifts left
- CAggregate demand shifts right
- DAggregate demand shifts left
56Suppose a computer virus disables all ATM machines, making withdrawals from bank accounts less convenient. As a result, people want to keep more cash on hand. (Draw MS & MD graph and AS & AD graph) In the short run what happens to the price level and real GDP?
- Aboth the price level and real GDP rise
- Bboth the price level and real GDP fall
- Cthe price level rises and real GDP falls
- Dthe price level falls and real GDP rises
57Suppose a computer virus disables all ATM machines, making withdrawals from bank accounts less convenient. As a result, people want to keep more cash on hand. (Draw MS & MD graph and AS & AD graph) If the Fed wants to stabilize this economic fluctuation, it should
- Abuy bonds. So interest rate rises to make the curve in AD-AS diagram shift back
- Bbuy bonds. So interest rate drops to make the curve in AD-AS diagram shift back
- Csell bonds. So interest rate rises to make the curve in AD-AS diagram shift back
- Dsell bonds. So interest rate drops to make the curve in AD-AS diagram shift back
58Suppose a computer virus disables all ATM machines, making withdrawals from bank accounts less convenient. As a result, people want to keep more cash on hand. (Draw MS & MD graph and AS & AD graph) If the Fed does nothing, what might Congress do to stabilize the economic fluctuation?
- Adecrease government spending or raise taxes
- Bincrease government spending or raise taxes
- Cdecrease government spending or cut taxes
- Dincrease government spending or cut taxes
59Suppose a computer virus disables all ATM machines, making withdrawals from bank accounts less convenient. As a result, people want to keep more cash on hand. (Draw MS & MD graph and AS & AD graph) If policymakers do nothing, the economy is able to correct the short-run fluctuation by itself. To reach the new long-run equilibrium, the change in price expectations created by this event shifts
- Along-run aggregate supply right
- Blong-run aggregate supply left
- Cshort-run aggregate supply right
- Dshort-run aggregate supply left
60Hurricane Sandy destroyed many factories in Eastern areas and caused a rise of the oil prices. How does this event affect the U.S. economy? Assume the government did not respond to this event at the beginning. (Draw AS & AD diagram) Which curve shifts and in which direction?
- Aaggregate demand shifts right
- Baggregate demand shifts left
- Caggregate supply shifts right
- Daggregate supply shifts left
61Hurricane Sandy destroyed many factories in Eastern areas and caused a rise of the oil prices. How does this event affect the U.S. economy? Assume the government did not respond to this event at the beginning. (Draw AS & AD diagram) If the policymakers do nothing at first, in the short-run what happens to the price level and real GDP?
- Aboth the price level and real GDP rise
- Bboth the price level and real GDP fall
- Cthe price level rises and real GDP falls
- Dthe price level falls and real GDP rises
- Aboth the price level and real GDP rise
62Hurricane Sandy destroyed many factories in Eastern areas and caused a rise of the oil prices. How does this event affect the U.S. economy? Assume the government did not respond to this event at the beginning. (Draw AS & AD diagram) If policymakers want to stabilize the economic fluctuation caused by hurricane Sandy, which curve shifts and in which direction?
- Aaggregate demand shifts right
- Baggregate demand shifts left
- Caggregate supply shifts right
- Daggregate supply shifts left
63Hurricane Sandy destroyed many factories in Eastern areas and caused a rise of the oil prices. How does this event affect the U.S. economy? Assume the government did not respond to this event at the beginning. (Draw AS & AD diagram) How is the new long-run equilibrium different from the original one?
- Aboth price and real GDP are higher
- Bboth price and real GDP are lower
- Cthe price level is the same and GDP is higher
- Dthe price level is higher and real GDP is the same
64Suppose the economy is in long-run equilibrium. A survey measure of consumer confidence indicate a wave of optimism about the economic conditions. As a result, consumers are purchasing more goods and services. Firms are expanding their business. (Draw AS & AD diagram) In the short-run what happens to the price level and unemployment rate?
- Aboth the price level and unemployment rate rise
- Bboth the price level and unemployment rate fall
- Cthe price level rises and unemployment rate falls
- Dthe price level falls and unemployment rate rises
65Suppose the economy is in long-run equilibrium. A survey measure of consumer confidence indicate a wave of optimism about the economic conditions. As a result, consumers are purchasing more goods and services. Firms are expanding their business. (Draw AS & AD diagram) In the short-run, this event causes
- Ainflation
- Brecession
- Cstagflation
- Dnone of the above
66Suppose the economy is in long-run equilibrium. A survey measure of consumer confidence indicate a wave of optimism about the economic conditions. As a result, consumers are purchasing more goods and services. Firms are expanding their business. (Draw AS & AD diagram) What happens to the expected price level and what impact does this have on wage bargaining?
- AThe expected price level falls. Bargains are struck for higher wages
- BThe expected price level falls. Bargains are struck for lower wages
- CThe expected price level rises. Bargains are struck for higher wages
- DThe expected price level rises. Bargains are stuck for lower wages
67Suppose the economy is in long-run equilibrium. A survey measure of consumer confidence indicate a wave of optimism about the economic conditions. As a result, consumers are purchasing more goods and services. Firms are expanding their business. (Draw AS & AD diagram) In the long run, the change in price expectations created by this event shifts
- Along-run aggregate supply right
- Blong-run aggregate supply left
- Cshort-run aggregate supply right
- Dshort-run aggregate supply left
68Suppose the economy is in long-run equilibrium. A survey measure of consumer confidence indicate a wave of optimism about the economic conditions. As a result, consumers are purchasing more goods and services. Firms are expanding their business. (Draw AS & AD diagram) How is the new long-run equilibrium different from the original one?
- Athe price level and real GDP are higher
- Bthe price level and real GDP are lower
- Cthe price level is higher and real GDP is the same
- Dthe price level is higher and real GDP is lower
69An economy if which the typical consumer's basket consists of 5 books and 10 calculators.
2006: price of a book $24 / price of a calculator $8
2007: price of a book $30/ price of a calculator $12
2008: price of a book $32/ price of a calculator $15
The cost of a basket in 2006 was- A$32
- B$480
- C$200
- D$280
70An economy if which the typical consumer's basket consists of 5 books and 10 calculators.
2006: price of a book $24 / price of a calculator $8
2007: price of a book $30/ price of a calculator $12
2008: price of a book $32/ price of a calculator $15
If 2006 is the base year, then the consumer price index was- A100 in 2006, 270 in 2007, and 310 in 2008
- B200 in 2006, 135 in 2007, and 155 in 2008
- C200 in 2006, 270 in 2007, and 310 in 2008
- D100 in 2006, 135 in 2007, 155 in 2008
71An economy if which the typical consumer's basket consists of 5 books and 10 calculators.
2006: price of a book $24 / price of a calculator $8
2007: price of a book $30/ price of a calculator $12
2008: price of a book $32/ price of a calculator $15
The inflation rate was- A25.9% in 2007 and 14.8% in 2008
- B35% in 2007 and 20% in 2008
- C35% in 2007 and 14.8% in 2008
- D22.6% in 2007 and 12.9% in 2008
72Assets Liabilities
Reserves $2,000 Deposits $10,000
Loans $8,000
The reserve ratio for this bank is- A0%
- B20%
- C80%
- D100%
73Assets Liabilities
Reserves $2,000 Deposits $10,000
Loans $8,000
If $1,000 is deposited into the First Bank of Fairfield, and the bank takes no other actions its (hint: "takes no other actions" means the bank hasn't loaned out the new deposits yet, and keeps all new deposits as reserves)- Areserves will increase by $200
- Bliabilities will decrease by $1,000
- Cassets will increase by $1,000
- Dreserves will increase by $800
74Assets Liabilities
Reserves $2,000 Deposits $10,000
Loans $8,000
Starting from the situation as depicted by the T-account, if someone deposits $500 into the First Bank of Fairfield, and if the bank makes new loans so as to keep its reserve ratio unchanged, then the amount of new loans that it makes will be- A$320
- B$400
- C$680
- D$750
75Draw a MS-MD diagram and shift MD to the right. What is the quantity measured along the horizontal axis?
- Athe price level
- Bthe real interest rate
- Cthe value of money
- Dthe quantity of money
76Draw a MS-MD diagram and shift MD to the right. Which of the following events could explain a shift of the money-demand curve from MD1 to MD2?
- Aan increase in the value of money
- Ba decrease in the price level
- Can open-market purchase of bonds by the Federal Reserve
- Dit is the holiday season and people want to purchase more goods and services
77Draw a MS-MD diagram and shift MD to the right. Suppose the relevant money-demand curve is the one on the left; also suppose the velocity of money is 3. If the money market is in equilibrium, then the economy's real GDP amounts to
- A5,000
- B7,500
- C10,000
- D15,000
Informationen
- Beschreibung
- Sample questions to study for macro-econ final.
- Autor
- hannahdevane
- Sprache
- English
- Aufrufe
- 402
- Schlagwörter
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