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Unformatted text preview: Homework 3 Econ 102-3: Principles of Macroeconomics due on February 8, 2008 Turn in your stapled homework during class on February 8, 2008 and remember that no late homework will be accepted. Question 1 (5 points) At the end of last year, the CPI equaled 120. At the end of this year, the CPI equals 132. What is the inflation rate over this year? A. 6 percent B. 10 percent C. 12 percent D. 1 percent E. none of the above Question 2 (5 points) In the long run, the level of national income in an economy is determined by its: A. factors of production and production function B. real and nominal interest rate C. government budget surplus or deficit D. rate of economic growth 1 Question 3 (5 points) A production function is a technological relationship between: A. factor prices and the marginal product of factors B. factors of production and factor prices C. factors of production and the quantity of output produced D. factor prices and the quantity of output produced Question 4 (5 points) A competitive firm chooses the:...
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This homework help was uploaded on 03/27/2008 for the course ECON 102 taught by Professor Singerman during the Spring '08 term at Iowa State.
- Spring '08