Question 1

Which of the following formulas is correct? Percentage change in

Accepted Answer

A) price level approximates percentage change in real income minus percentage change in nominal income. 
B) real income approximates percentage change in nominal income minus percentage change in price level. 
C) nominal income approximates percentage change in price level minus percentage change in real income. 
D) real income approximates percentage change in price level minus percentage change in nominal income. 
A) price level approximates percentage change in real income minus percentage change in nominal income. 
B) real income approximates percentage change in nominal income minus percentage change in price level. 
C) nominal income approximates percentage change in price level minus percentage change in real income. 
D) real income approximates percentage change in price level minus percentage change in nominal income.

Question 2

The duration of a recession measures the depth of decline in real output during the recession.

Accepted Answer

A) True 
 B)False

Question 3

Inflation, as measured by percentage changes in the CPI,

Accepted Answer

A) concerns policymakers more than the level of core inflation. 
B) does not include the most price-flexible goods in the economy. 
C) is generally less volatile than core inflation. 
D) is generally more volatile than core inflation. 
A) concerns policymakers more than the level of core inflation. 
B) does not include the most price-flexible goods in the economy. 
C) is generally less volatile than core inflation. 
D) is generally more volatile than core inflation.

Question 4

Most economists agree that the immediate cause of most business cycle variation is

Accepted Answer

A) an unexpected change in the productivity of workers. 
B) an unexpected change in the level of total spending. 
C) the invention of new products. 
D) the growth and subsequent bursting of financial bubbles. 
A) an unexpected change in the productivity of workers. 
B) an unexpected change in the level of total spending. 
C) the invention of new products. 
D) the growth and subsequent bursting of financial bubbles.

Question 5

If the price level doubled in a 23-year period, we can conclude that the average annual rate of inflation over that period was about 3 percent.

Accepted Answer

A) True 
 B)False

Question 6

When unanticipated deflation occurs,

Accepted Answer

A) both creditors and debtors benefit. 
B) both creditors and debtors are hurt. 
C) debtors are hurt, but creditors benefit. 
D) creditors are hurt, but debtors benefit. 
A) both creditors and debtors benefit. 
B) both creditors and debtors are hurt. 
C) debtors are hurt, but creditors benefit. 
D) creditors are hurt, but debtors benefit.

Exam 29: Business Cycles, Unemployment, and Inflation

Which of the following formulas is correct? Percentage change in

The duration of a recession measures the depth of decline in real output during the recession.

Inflation, as measured by percentage changes in the CPI,

Most economists agree that the immediate cause of most business cycle variation is

If the price level doubled in a 23-year period, we can conclude that the average annual rate of inflation over that period was about 3 percent.

When unanticipated deflation occurs,

Limits, Alternatives, and Choices

The Market System and the Circular Flow

Demand, Supply, and Market Equilibrium

Market Failures: Public Goods and Externalities

Governments Role and Government Failure

Elasticity

Utility Maximization

Behavioral Economics

Businesses and the Costs of Production

Pure Competition in the Short Run

Pure Competition in the Long Run

Pure Monopoly

Monopolistic Competition

Oligopoly and Strategic Behavior

Technology, Rd, and Efficiency

The Demand for Resources

Wage Determination

Rent, Interest, and Profit

Natural Resource and Energy Economics

Public Finance: Expenditures and Taxes

Antitrust Policy and Regulation

Agriculture: Economics and Policy

Income Inequality, Poverty, and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Basic Macroeconomic Relationships

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

Fiscal Policy, Deficits, and Debt

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

Filters