ANSWER THE FOLLOWING QUESTIONS 3. Define the term expected inflation. Also discuss why inflation is bad? What are the
costs of inflation?
4. Which of these are characteristic of a gold standard as historically practiced? More
than one answer may be correct.
(a) Fluctuating foreign exchange rates.
(b) Fixed exchange rates among different currencies.
(c) Inflationary central bank tendencies.
(d) Free convertibility of currencies into one another.
(e) Fixed rates of economic growth.
(f) Requirements for occasional explicit cooperation among governments.
(g) Strong public distrust in the value of the national currency.
(h) The impossibility of running perpetual trade surpluses.
5. How does a fixed exchange rate help a weak central bank? MULTIPLE CHOICE
1. 2. 3. 4. 5. 6. .7. 8. 9. 10. 11. 12. 13. 14. 15.
Which of the following equals the expenditure side of GDP? A.
B.
C.
D. consumption + government purchases + saving + taxes.
consumption + investment + government purchases + net exports.
consumption + investment + government purchases + net imports
wages + rent + interest + profits + indirect business taxes. 16. Gross domestic product
A. includes all the goods and none of the services produced in an economy in a given
time period. B. measures the value of the aggregate production of goods and services in a country
during a given time period.
C. measures the value of labor payments generated in an economy in a given time
period.
D. is generally less than federal expenditure in any time period.
17. Which of the following would cause the growth in real GDP to understate the
improvement in the standard of living over time?
A. if the average person increases hours worked over time.
B. if the environment is improving over time.
C. if the population grows over time
D. all of the above.
Suppose that an economy produces only apples and oranges and the prices and quantities
of each are given in the table below. 18. Assuming that 2012 is the base year, real GDP in 2010 is _____ and nominal GDP in
2010 is _____.
A.
B.
C.
D.
E. $2,400; more $2,400
$4,000; more than $4,000
$2,400 less than $2,400
$4,000 less than $4,000
none of the above. 19. Assuming that 2012 is the base year, the GDP deflator (rounded to the nearest integer)
is ____ in 2010 and _____ in 2012.
A. 60; 100
B. 100; 60
C. 100; 167
D. 167; 100
20. As the economy strengthens, some “discouraged workers” reenter the labor market and
begin searching for jobs. Assuming that none of them initially find jobs, this would cause
the unemployment rate to ___, the labor force participation rate to ____, and the
employment-population ratio to ____.
A. rise; rise; fall
B. not change; rise; fall
C. rise; not change; not change
D. none of the above 21. During expansions, the labor force participation rate tends to
A. rise, but not by as much as the employment-population ratio.
B. rise by more than the employment-population ratio.
C. fall whereas the employment-population ratio rises.
D. none of the above.
22. Suppose that over the next year your nominal wage (in 2000 dollars) rises from $10 to
$12 and the CPI rises from 120 to 130. Based on this, your real wage ___.
A. fell by more than 5%
B. fell by less than 5%
C. rose by less than 15%
D. rose by more than 15%
23. Between 2000 and 2013, the CPI rose from 169.3 to 231.3. This implies that $1 in 2000
would buy as much as ____ in 2013.
A. $2.31
B. $1.69
C. $1.37
D. none of the above
24. Between 2000 and 2013, the CPI rose from 169.3 to 231.3. This implies that the average
annual rate of inflation over the period was:
A. 1.9%
B. 2.4%
C. 3.2%
D. 3.7%
25. If the price of gasoline rises dramatically,
A.
B.
C.
D. the quantity demanded for cars will decrease.
the demand for commuter train rides will decrease.
the demand for cars will decrease.
the quantity of commuter train rides demanded will increase.

• 1499821418-ECON 306 EXAM 1.pdf

SuperTutor

(15)

Status NEW Posted 12 Jul 2017 12:07 AM My Price 20.00

-----------

Attachments

file 1499821294-Solutions file.docx preview (51 words )

S-----------olu-----------tio-----------ns -----------fil-----------e -----------Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k y-----------ou -----------for----------- yo-----------ur -----------int-----------ere-----------st -----------and----------- bu-----------yin-----------g m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l b-----------e q-----------uic-----------kly----------- on-----------lin-----------e a-----------nd -----------giv-----------e y-----------ou -----------exa-----------ct -----------fil-----------e a-----------nd -----------the----------- sa-----------me -----------fil-----------e i-----------s a-----------lso----------- se-----------nt -----------to -----------you-----------r e-----------mai-----------l t-----------hat----------- is----------- re-----------gis-----------ter-----------ed -----------on�-----------�th-----------is -----------web-----------sit-----------e -----------Tha-----------nk -----------you----------- -----------

Not Rated(0)

• Buy Answer