Question 1

Labor productivity measures output per hour of work.

Accepted Answer

A) True 
 B)False

Question 2

Low inflation rates and high inflation rates impose different costs on society.

Accepted Answer

A) True 
 B)False

Question 3

The growth rates of actual and potential GDP

Accepted Answer

A)  are similar in both the short and long run. 
B)  are similar in the short run but not the long run. 
C)  are similar in the long run but not the short run. 
D)  are different in both the short and long run. 
A)  are similar in both the short and long run. 
B)  are similar in the short run but not the long run. 
C)  are similar in the long run but not the short run. 
D)  are different in both the short and long run.

Question 4

From 1991 to 2007, the rate of inflation in the United States has been

Accepted Answer

A)  zero. 
B)  between zero and 2.1 percent. 
C)  between 1.6 percent and 4.1 percent. 
D)  between 3.2 percent and 7.2 percent. 
A)  zero. 
B)  between zero and 2.1 percent. 
C)  between 1.6 percent and 4.1 percent. 
D)  between 3.2 percent and 7.2 percent.

Question 5

Saving is often discouraged by usury laws during inflationary periods because

Accepted Answer

A)  nominal rates of interest are kept above real rates of interest. 
B)  nominal rates of interest are kept below inflation rates. 
C)  nominal rates of interest are kept above inflation rates. 
D)  real rates of interest are kept above inflation rates. 
A)  nominal rates of interest are kept above real rates of interest. 
B)  nominal rates of interest are kept below inflation rates. 
C)  nominal rates of interest are kept above inflation rates. 
D)  real rates of interest are kept above inflation rates.

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 the rate of technical progress decreases, then the growth

Accepted Answer

A)  of the labor force will decrease. 
B)  of the capital stock will decrease. 
C)  rate of potential GDP will decrease. 
D)  rate of unemployment will decrease. 
A)  of the labor force will decrease. 
B)  of the capital stock will decrease. 
C)  rate of potential GDP will decrease. 
D)  rate of unemployment will decrease.

Question 8

The growth rate in potential GDP is equal to the growth rate in the population.

Accepted Answer

A) True 
 B)False

Question 9

Policy should create an environment in which the economy can expand its productive capacity rapidly, because that is the ultimate source of higher living standards. This task is the realm of

Accepted Answer

A)  growth policy. 
B)  stabilization policy. 
C)  labor policy. 
D)  inflation policy. 
A)  growth policy. 
B)  stabilization policy. 
C)  labor policy. 
D)  inflation policy.

Question 10

If both borrowers and lenders anticipate the rate of inflation correctly, then

Accepted Answer

A)  borrowers will lose real income. 
B)  lenders will lose real income. 
C)  both borrowers and lenders will lose real income. 
D)  neither borrowers nor lenders will lose real income. 
A)  borrowers will lose real income. 
B)  lenders will lose real income. 
C)  both borrowers and lenders will lose real income. 
D)  neither borrowers nor lenders will lose real income.

Question 11

The reason that inflation rarely harms workers is that

Accepted Answer

A)  wages rise at the same time prices rise. 
B)  wages fall when prices rise. 
C)  nominal income falls as prices rise. 
D)  the minimum wage rate automatically rises when the price level rises. 
A)  wages rise at the same time prices rise. 
B)  wages fall when prices rise. 
C)  nominal income falls as prices rise. 
D)  the minimum wage rate automatically rises when the price level rises.

Question 12

GDP equals hours of work multiplied by output per hour. This can be rewritten as

Accepted Answer

A)  growth rate of potential GDP = growth rate of labor input + growth rate of labor productivity. 
B)  potential GDP = wages + cost of production. 
C)  growth rate of real GDP = growth rate of labor input + growth rate of marginal output. 
D)  growth rate of GDP = growth rate of wages + growth rate of labor productivity. 
A)  growth rate of potential GDP = growth rate of labor input + growth rate of labor productivity. 
B)  potential GDP = wages + cost of production. 
C)  growth rate of real GDP = growth rate of labor input + growth rate of marginal output. 
D)  growth rate of GDP = growth rate of wages + growth rate of labor productivity.

Labor productivity measures output per hour of work.

Low inflation rates and high inflation rates impose different costs on society.

The growth rates of actual and potential GDP

From 1991 to 2007, the rate of inflation in the United States has been

Saving is often discouraged by usury laws during inflationary periods because

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

If the rate of technical progress decreases, then the growth

The growth rate in potential GDP is equal to the growth rate in the population.

Policy should create an environment in which the economy can expand its productive capacity rapidly, because that is the ultimate source of higher living standards. This task is the realm of

If both borrowers and lenders anticipate the rate of inflation correctly, then

The reason that inflation rarely harms workers is that

GDP equals hours of work multiplied by output per hour. This can be rewritten as

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

Contemporary Issues in the Us Economy

Filters

Exam 22: The Goals of Macroeconomic Policy

Labor productivity measures output per hour of work.

Low inflation rates and high inflation rates impose different costs on society.

The growth rates of actual and potential GDP

From 1991 to 2007, the rate of inflation in the United States has been

Saving is often discouraged by usury laws during inflationary periods because

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

If the rate of technical progress decreases, then the growth

The growth rate in potential GDP is equal to the growth rate in the population.

Policy should create an environment in which the economy can expand its productive capacity rapidly, because that is the ultimate source of higher living standards. This task is the realm of

If both borrowers and lenders anticipate the rate of inflation correctly, then

The reason that inflation rarely harms workers is that

GDP equals hours of work multiplied by output per hour. This can be rewritten as

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

Contemporary Issues in the Us Economy

Filters