Econ 545 Week 5 part 2 Quiz.docx - Score 0 of 2 pts 4 i...

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Unformatted text preview: Score: 0 of 2 pts 4 i orzu v } Test Score: ()9 End of Chapter 1.10 [Related It) Solved Problem M] Suppose that a simple economy produces only the lollowing four goods and services: shoes, hamburgers, shirts, and cotton. Further, assumethat all ol the cotton is used in the production of shirts. Use the inlorrnation in the loilowing table to caicuiate Nominal Gross Domestic Product (Norninai GDP) lor20i5. PRODUCTION AND PRICE STATISTICS FOR 2015 Product Quantity Price Shnes 125 $65.00 Hamburgers 110 3.00 Shirts 60 30.00 Cotton 7.000 0.75 The Nominal GDP torthe year2015 is $10,255‘. eview Quiz: Week 5 Quiz 4 2 orzo v E] Test Scale: 50 51%, 32.33 cit 65 pts {7! Scale: 0 of4 pts E End of Chapter 3.4 [Related to Sotved Pmbl'em rut Suppose the intorriiation in the foliowing tapie is tor a simpie economy that produces oniy the foliowing tour goods shoes, hampurgers, shins, and cotton Funher, assume that aii ot the cotton is used to produce shins 2009 Statistics 2014 Statistics 2015 Statistics Product Quantity Price Quantity Price Quantity Price Shoes 90 $50 00 iUEI $60.00 iUEI $65.00 Hamburgers 8|] 2 50 MEI 2.50 iZS 2.75 Shirts 50 30 00 50 25.00 55 25.00 Cotton il,000 0 85 i0,000 0.70 ii,000 0.75 a. If the case year is the year zoos, then reai GDP for 2o i4 equais 5 ms or)‘ {round your answer to the nearest penny) and the reai GDP tor 2ot 5 equais 5 72m 59‘ (round your answel to the nearest penny) o. The (annuai) growth rate ot reai GDP in ZUiS is 7.23% {Enter your response as a percentage rounded to two deormai piaces J Business Economics (mot Review Quiz: Week 5 Quiz Score:[)m4pts ® Concept: Real/Nominal GDP 1 A simpie economy produces two goods, Pumpkin Pies and Software. Price and quantity data are as toIiows: 4 3 pt 20 v m Test Scare: 50.51%, 32.83 at 65' ‘1 Product' n and Prices' Yeart [Bose year) Product Quan ty P Pumpkin Pies ioo Soflware sou Production and Prices in Year 2 Product Quantity Price Per Unit Pumpkin Pies izs oo saoo Sottware 75o oo Sioooo In Year 2, norriinai GDP is equai to: o 75.375.00‘, and reai GDP is at 37,750.00‘ (enter corn responses rounded (o the nearest penny). xl‘lllut-n THiS recs is hurt is SHARE \iiA 0. Safe Sea mh V SAFE OPEN GMAil Economics (toot Review Quiz: Week 5 Quiz Score:3cif3pts 1 4 0120 v m Test Score: 50.51%, 32.83 at 65 @ Concept: Unemployment Rate 1 In an economy, the workinoage popuiation is 200 miiiion. at this totai. too rniiIion workers are empioyed. a miIiion workers are unempioyed. 23 miiiion workers are not avaiiahie tor work (homemakers, tun—time students, etc). 4 miiiion workers are avaiiahie tor work out are discouraged and thus are not Seeking work. 2 miiiion workers are avaiiahie tor work out are not currently seeking work due to transportation or chiidcare prooiems. The unempioyrrient rate in this economy is 3 a vs (Round your answer to one decrnrat prace.) — we uPtN — cman Business Economics :luui Review Quiz: Week 5 Quiz Scale: 1.5 offi p15 4 5 0120 v E] Test Score: 50 51%, 32 83 ores pls ® Concept: Unemployment Rate 3 ll) The unemployment rate A. shows the percentage otthe population that is considered unemployed. B is the amount pt people in the population that are not working .0 shows the percentage oflhe iaporlorce that is considered unemployed. D. is me amount 0' the labor force Il’lal is l'IDI working Suppose an economy is given by the tollovvlng: Population = 234 million Laborlorce : lM million The numper ot people employed = 1720 million The numper ot people unemployed : 12.0 million Given the intormation apove. the unemployment rate is 6.3%. (Enfer yourresponse mundeo‘to one oeoirnai place i Mi: mag IS VALHT IS SHAREViA SAFE OPEN GMAiL Business Economics :iOOl Review Quiz: Week 5 Quiz Score:0013pu 4 eurzuv B TestScore: 50.5 ® Concept: Govt Purchases Multiplier Supposethe government incneases expenditures try $150 billion and the marginal pmpenslty to consume is 0.50. By hovv will equilibrium GDP change? The change in equilibrium GDP is: $ 300.0‘ billion. (Round your solution to one doormal pt‘ace J Review Quiz: Week 5 Quiz Score: 2 «2 pts 1 7 olzu v B Test Some: 50.51%, 32.53 ( @ Concept: Multiplier Effect According to the multiplier ettect, an initial decrease in government purchases decreases real GDP py more than the a lnlllal decrease in govemmerll purchases Frlce level Real GDP View Qutz Week UIZ alas Score: 3 of 3 p15 4 a u! 20 v B Test Score: 50.51%, 32.63 of 65 n (J) Concept: Fiscal vs. Monetary Policy 1: Why might curring government spending as a liscal policy he a more difficull policy thanthe use ol monetary policy to slow down an economy experiencing inflation? . A. The legislative process works quickly 3. The economy may have already slowed, c. The government has more concentrated power than the Fed .v n. The legislative process experiences longer delays than monetary policy, ReVIew UIZ Week 5 QUIZ Score: 1 01 2 p95 { 9 mm 7 > Test Scone: 50,5 69 End of Chapter 3.4 The farmuia forlhe simpie deposit mulliplier is sVA. _ 1 B. _ _ simpie Deposii Muihpiier: fi' simpie Deposit Muiiipirer: C' Sim ie De asilMuiti iier- (PM D' Sim ieDe ositMulli iier'; p p 9 RR - p p 9 _RR- ll ihe required meme raiio is up, ihe maximum increase in checking accouni depnsiis ihai wiii rguit irom an increase in hank mewg ot $20,003 is $109,095, (Enter your response as an mfegEr) Bus-meat:- ECOHDmiCE i100i Review Quiz: Week 5 Quiz some: Dmafls 4 I0 omuv E] TeslScnle:5051%, 321130155115 ® End of Chapter 3.9 {It Supposeihai Deya owns a Mchnaid's iranchrse She decidES to wave her resiaurani's checking accouni io Weiis Fargo, which causes the changes shown on ihe ioiiowing Teaccouni, Wells Fltgo Assels Li-bilities Reserves $100,000 Deposits $100,000 ii ihe required n-serye raliu is 0.05, ors percem, and Weiis Fango cunemiy has no excfis reserves. ihe maximum ioan Weiis Fargo can make as n-suii 0| (his iransaciion is 5 95,000‘. (Enter your response reunited to the nearest wnoie number; Review Quiz: Week 5 Quiz Score: 4 uf4 [is 4 11 mo 7 B Tat Scale: 50.51%, 32.63 (#65; @ Concept: Change in Checking Deposits 1 Suppose you depusil $1,300 cash inio your checking accoum. By haw much wiii checking deposits in ihe honking system increase as a n-suii when the required reserve ratio is 0.20? The change in checking deposits is equai lo' 5 6,50!) (enter yourresuit rounded to the nearest potiar) View QUI Week 5 QUIZ Score: 0 at 4 pts 4 12 at 20 v > Test Score: 505151., 32 83 ® Concept: Change in Money Supply Suppose you depusil $2,100 cash imo your checking accourn By how much will ihe totai muney euppiy increase as a tesuil when Ihe required rgerye ratio is n 507 The change in ihe money suppiy is 5 2199‘ (enter yourreeuii mundeu‘ to the nearest dciiar) View Quiz eek 5 Quiz Score: .33 of 4 pts 1 13 0120 v B Test Scale: 50 51%, ® Concept: Excess Reserves Excfis reserves -.2 A. are [he depuslrs lhal hanks do not usem make loans -*3. are memes hanks keep above me legal requirement. -.2 C. are loans made al above market imeml ram J" D. are memm hanks keep to meel lne meme requirement. Suppose lne required meme ralio is 12% and a bank nas the lollowing palance sheet: Assets L' bll es Raerves $2.i00 Deposits $10,500 Loans 53,4uu This hank keeps required manta nl$1260 and excas merm ofssao‘, (Enferynurrespnnses asfnfegers) View Qui Week 5 Quiz Score: 3 of3 pt: 1 14 ofzo v B Test Scale: 50.51% 9) Concept: ReserveslSimple Multiplier Suppose Ihe meme requirement is 15% Whal is Ihe eflecl on lelal checkable depesrls in me economy if hank merm increase by son piiiionv NA. $4M hilllnn increase B. $4 billion increase C. 560 billion increase D. $900 billion increase Review Quiz: Week 5 Quiz Score: 3 of3 pts 1 15 mm v B Test Scale: (J) End of Chapter 2.7 II the Federal Raerve purchases $130 million wonh of U.S. Treasury bills from the public, the money supply will increase THIS war is VALHT iS SHARE le Safes h open Review Quiz: Week 5 Quiz Score: 3 on pts 1 16 ofzn v B Test SCDIE: @ Concept: Fed Manages Money Supply 1 wnen Ihe Federal Raervesells ponds as a pan or a cdruraclionary monelary policy, lnere is: i-VA. A decrease intne money supply and an increase in the interest rate. B. An increase intl’le money supply and a decrease in Ihe interesl rele. C. An increase intne money supply and an increase in the interest rate. D. A decrease inti'le money supply and a decrease in the interest rate. Economics i100] Review Quiz: Week 5 Quiz Snore: Dofflpts { 17 nrznv m Test SCI)“ ® Concept: Fed Policy Target 1 The Federal Reserve cannot aflect the unemployment rate directly; therefore, the Fed typically uses the following as its policy target: A. Inflation. B. Govemrrlent mpenditures. _ .lnterlestrates. Q5 D. Taxes. ReVIew Qutz Week 5 Qutz Score: 4 M4 pts 4 18 0t 20 V B Tut 500M: 50.51%, 32.83 01 @ Concept: Contractionary Policy 1 Suppose the economy is initially in longmn equilibrium. The Fed decides to sell ponds in the shorteruri, this contractionary monetary Price Level a policy will cause: . A shill trom A01 to AD2 and a movement to point B. vhth a higher price level and higher output. B. A shill lrom SRAS1 to SRASZ and a movement to point A, with a higher price level and the same output . A shill trom A02 to AD, and a movement to point D. vhth a lower price level and lowerovtpvt 0. A shill trcm SRASz to SRAS1 and a movement to point B, thh a lower price level and higher output a 2 4 6 a lo 12 14 is Real GDP Etrilllnns nr2000 dollars) Review Quiz: Week 5 Quiz Score: fluMpts { lecfzuv B Tut Snore:50.1 ® Concept: Expansionary Monetary Policy 1 Suppose the economy is initially in longrun equilibrium. The Fed enact; a policy to decrease the discount rate. In the shorlarun. this Price Level a expansionary monetary policy Wlll came: Q”. A shift rmm SRAS1 to SRASZ and a movement to point a, with a lower pn'ce level and higher output. t*B. A shift from AD1 to AD2 and a movement to point B, with a higher price level and higher output. C. A shift from SRAS2 to SRAS1 and a movement to point D, with a higher price level and lower output. t t D. A shift from AD2 to AD1 and a movement to paint c, thh a lower price level and the same output. fl 2 4 a a 10 12 14 16 Real GDPltrllllan cfZUUU dollars) n —‘ ' --. -- "\ ‘ ' M 5m cum uGMAIL Economics (100] Review Quiz: Week 5 Quiz Score:4o14pls E znnrznv b @ Concept: Monetary Policy Data Table Consider the following table: Year Potential GDP Real GDP 2012 $14.7 trillion $14.7 trillion 2013 $15.3 trillion $15.4 trillion Price Level 110 114 What can we expect from the Federal Reserve Bank if it seeks to move the economy in the direction of iong—mn macroeconomic equilibrium? The Fed will pursue an expansionary fiscal policy. The Fed will pursue a contractionary fiscal policy. The Fed will pursue a contractionary monetary policy. 53.0555? The Fed will pursue an expansionary monetary policy. If the Fed's policy is successful, what is the effect on the following indicators? Actual real GDP: decreases Potential real GDP: does not change Pn‘ce level: decreases Unemployment: increases ...
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