Question 1

When real GDP grows more slowly than potential GDP,

Accepted Answer

A)  nominal GDP rises. 
B)  the unemployment rate falls. 
C)  labor productivity falls. 
D)  the unemployment rate rises. 
A)  nominal GDP rises. 
B)  the unemployment rate falls. 
C)  labor productivity falls. 
D)  the unemployment rate rises.

Question 2

If prices rise,then persons living on fixed incomes will

Accepted Answer

A)  see their real incomes falling. 
B)  see the purchasing power of their savings fall. 
C)  need to spend more to maintain their standard of living. 
D)  All of the above are true. 
A)  see their real incomes falling. 
B)  see the purchasing power of their savings fall. 
C)  need to spend more to maintain their standard of living. 
D)  All of the above are true.

Question 3

Due to the distortionary effects of inflation,capital investment may be reduced due to higher price levels.

Accepted Answer

A) True 
 B)False

Question 4

Full employment is defined by all economists as precisely 5 percent of the labor force.

Accepted Answer

A) True 
 B)False

Question 5

Economic growth is most likely to solve the problems of

Accepted Answer

A)  environmental pollution. 
B)  world poverty. 
C)  emotional stress. 
D)  social alienation. 
A)  environmental pollution. 
B)  world poverty. 
C)  emotional stress. 
D)  social alienation.

Question 6

The distinction between real and nominal rates of interest is understood by

Accepted Answer

A)  most public policy makers. 
B)  the majority of the American population. 
C)  a majority of legislators. 
D)  relatively few Americans. 
A)  most public policy makers. 
B)  the majority of the American population. 
C)  a majority of legislators. 
D)  relatively few Americans.

Question 7

If you as a lender want an increase in purchasing power of 4 percent from making a loan and you set the nominal interest rate at 9 percent,then your

Accepted Answer

A)  real rate of interest is 13 percent. 
B)  expected rate of inflation is 5 percent. 
C)  expected rate of inflation is 13 percent. 
D)  real rate of interest is 36 percent. 
A)  real rate of interest is 13 percent. 
B)  expected rate of inflation is 5 percent. 
C)  expected rate of inflation is 13 percent. 
D)  real rate of interest is 36 percent.

Question 8

Which of the following groups would be most optimistic about the effects of economic growth?

Accepted Answer

A)  Environmentalists 
B)  Psychologists 
C)  Economists 
D)  All would be similar in their views 
A)  Environmentalists 
B)  Psychologists 
C)  Economists 
D)  All would be similar in their views

Question 9

The unemployment rate is equal to

Accepted Answer

A)  the number unemployed divided by the labor force. 
B)  the number unemployed divided by the population. 
C)  the number unemployed divided by the number employed. 
D)  the labor force divided by the population. 
A)  the number unemployed divided by the labor force. 
B)  the number unemployed divided by the population. 
C)  the number unemployed divided by the number employed. 
D)  the labor force divided by the population.

Question 10

When inflation occurs,

Accepted Answer

A)  real wages must necessarily fall. 
B)  real wages must necessarily rise. 
C)  workers will experience falling real incomes. 
D)  workers' real income may rise or fall. 
A)  real wages must necessarily fall. 
B)  real wages must necessarily rise. 
C)  workers will experience falling real incomes. 
D)  workers' real income may rise or fall.

Question 11

One of the key factors that determine an economy's real GDP is labor productivity,which is a measure of

Accepted Answer

A)  output per hour of work. 
B)  labor force per hour. 
C)  input per hour worked. 
D)  total hours worked. 
A)  output per hour of work. 
B)  labor force per hour. 
C)  input per hour worked. 
D)  total hours worked.

When real GDP grows more slowly than potential GDP,

If prices rise,then persons living on fixed incomes will

Due to the distortionary effects of inflation,capital investment may be reduced due to higher price levels.

Full employment is defined by all economists as precisely 5 percent of the labor force.

Economic growth is most likely to solve the problems of

The distinction between real and nominal rates of interest is understood by

If you as a lender want an increase in purchasing power of 4 percent from making a loan and you set the nominal interest rate at 9 percent,then your

Which of the following groups would be most optimistic about the effects of economic growth?

The unemployment rate is equal to

When inflation occurs,

One of the key factors that determine an economy's real GDP is labor productivity,which is a measure of

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

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Exam 6: The Goals Of Macroeconomic Policy

When real GDP grows more slowly than potential GDP,

If prices rise,then persons living on fixed incomes will

Due to the distortionary effects of inflation,capital investment may be reduced due to higher price levels.

Full employment is defined by all economists as precisely 5 percent of the labor force.

Economic growth is most likely to solve the problems of

The distinction between real and nominal rates of interest is understood by

If you as a lender want an increase in purchasing power of 4 percent from making a loan and you set the nominal interest rate at 9 percent,then your

Which of the following groups would be most optimistic about the effects of economic growth?

The unemployment rate is equal to

When inflation occurs,

One of the key factors that determine an economy's real GDP is labor productivity,which is a measure of

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

An Introduction To Macroeconomics

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters