Final Exam Questions Question 1.A statement that is often used to describe demand-pull inflation is:A."A rising tide lifts all boats"B."Money is easily earned, but not easily saved"C."Too much money chasing too few goods"D."There is no such thing as a free lunch"
Question 2Changes in government spending and tax revenues for the purpose of achieving a full-employment and noninflationary level of domestic output is called:
Question 3The following are national income account data for a hypothetical economy in billions of dollars:gross private domestic investment ($320); imports ($35); exports ($22); personal consumption expenditures ($2,460); and, government purchases ($470). What is GDP in this economy?
Question 4A checkable deposit at a commercial bank is a(n):
Question 5Opportunity cost is best defined as:A.marginal cost minus marginal benefit.B.the value of the best foregone alternative.C.the time spent on an economic activity.D.the money cost of an economic decision
Question 6 Cost-push inflation arises from: