Question 1

Several factors contribute to short-run price stickiness.These include:

Accepted Answer

A) consumer preference for lower prices and the quality of the product. 
B) durability and the quality of the product. 
C) frequent sales and, inventory pile ups. 
D) consumer preference for predictable prices and, the fear of price war. 
A) consumer preference for lower prices and the quality of the product. 
B) durability and the quality of the product. 
C) frequent sales and, inventory pile ups. 
D) consumer preference for predictable prices and, the fear of price war.

Question 2

The inequality of saving and planned investment:

Accepted Answer

A) is attributable to a low level of consumption. 
B) may be of considerable significance because of the subsequent changes in income, employment, and the price level. 
C) is of no consequence because a compensating inequality of tax collections and government spending will always occur. 
D) is of no consequence because saving and actual investment will always be equal. 
A) is attributable to a low level of consumption. 
B) may be of considerable significance because of the subsequent changes in income, employment, and the price level. 
C) is of no consequence because a compensating inequality of tax collections and government spending will always occur. 
D) is of no consequence because saving and actual investment will always be equal.

Question 3

The concept of "real GDP" refers to:

Accepted Answer

A) the value of nominal GDP after adjustments have been made for changes in the price level. 
B) the value of nominal GDP minus the environmental pollution and changes in the distribution of income. 
C) the value of the current total output plus the value of intermediate goods. 
D) GDP data which reflect changes in both physical output and environmental damage. 
A) the value of nominal GDP after adjustments have been made for changes in the price level. 
B) the value of nominal GDP minus the environmental pollution and changes in the distribution of income. 
C) the value of the current total output plus the value of intermediate goods. 
D) GDP data which reflect changes in both physical output and environmental damage.

Question 4

To understand how the economy works, economists could look at various data including:

Accepted Answer

A) the number of new residential building permits. 
B) the amount of new orders for capital goods. 
C) the number of manufacturers' new orders for consumer goods. 
D) all of the above. 
A) the number of new residential building permits. 
B) the amount of new orders for capital goods. 
C) the number of manufacturers' new orders for consumer goods. 
D) all of the above.

Question 5

Refer to the above diagram.Curve (a) is the current production possibilities frontier for the economy.Other things being equal, society's current choice of point P on curve (a) means:

Accepted Answer

A) more rapid economic growth compared to choosing point N. 
B) a slower rate of economic growth compared to choosing point N. 
C) the same rate of growth as would occur if point N were chosen. 
D) it is unachievable because it exceeds the productive capacity of the economy. 
A) more rapid economic growth compared to choosing point N. 
B) a slower rate of economic growth compared to choosing point N. 
C) the same rate of growth as would occur if point N were chosen. 
D) it is unachievable because it exceeds the productive capacity of the economy.

Exam 6: B: an Introduction to Macroeconomics

Several factors contribute to short-run price stickiness.These include:

The inequality of saving and planned investment:

The concept of "real GDP" refers to:

To understand how the economy works, economists could look at various data including:

Refer to the above diagram.Curve (a) is the current production possibilities frontier for the economy.Other things being equal, society's current choice of point P on curve (a) means:

B: Limits, Alternatives, and Choices

A: - Limits, Alternatives, and Choices

B: The Market System and the Circular Flow

A: - The Market System and the Circular Flow

B: Demand, Supply, and Market Equilibrium

A: - Demand, Supply, and Market Equilibrium

B: Market Failures: Public Goods and Externalities

A: - Market Failures: Public Goods and Externalities

B: Governments Role and Government Failure

A: Governments Role and Government Failure

A: an Introduction to Macroeconomics

B: Measuring the Economys Output

A: Measuring the Economys Output

B: Economic Growth

A: Economic Growth

B: Business Cycles, Unemployment, and Inflation

A: Business Cycles, Unemployment, and Inflation

B: Basic Macroeconomic Relationships

A: Basic Macroeconomic Relationships

B: The Aggregate Expenditures Model

A: The Aggregate Expenditures Model

B: Aggregate Demand and Aggregate Supply

A: Aggregate Demand and Aggregate Supply

B: Fiscal Policy, Deficits, Surpluses, and Debt

A: Fiscal Policy, Deficits, Surpluses, and Debt

B: Money, Banking, and Money Creation

A: Money, Banking, and Money Creation

B: Interest Rates and Monetary Policy

A: Interest Rates and Monetary Policy

C: Financial Economics

A: Long-Run Macroeconomic Adjustments

B: Long-Run Macroeconomic Adjustments

A: International Trade

B: International Trade

A: The Balance of Payments and Exchange Rates

B: The Balance of Payments and Exchange Rates

The Economics of Developing Countries

Filters