Check - If the CPI in Year 2 equals 110 and the CPI in Year...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
If the CPI in Year 2 equals 110 and the CPI in Year 3 equals 121, it can be concluded that consumer prices a. rose from Year 2 to Year 3 by 11. b. rose from Year 2 to Year 3 by 11%. rose from Year 2 to Year 3 by 10%. d. are the same in Year 2 as in the base year. One reason expectations of inflation are important from a macroeconomic point of view is that people a. tend to raise prices and wages more when they do not expect inflation. b. tend to raise prices and wages more when they expect inflation. c. do not seem to notice increases in the cost-of-living that were not anticipated. d. seem to notice increases in the cost-of-living more when those increases were anticipated. The short-run Phillips curve describes the inverse relationship between a. aggregate expenditures and the price level. b. the unemployment rate and the production possibilities curve. c. inflation and the unemployment rate. d. growth and national welfare. Net foreign factor income is the a. income earned from the domestic economy by foreigner factors. b. income earned abroad by domestic factors. c. difference between the income earned abroad by domestic factors and the income earned domestically by foreign factors. d. difference between the value of a country’s exports and imports. GDP is $7 trillion. If consumption is $3.5 trillion, investment is $1.4 trillion, and government purchases are $2.1 trillion, then a. exports are equal to imports. b. exports exceed imports. c. imports exceed exports. d. net exports cannot be determined from the available information.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Between 1986 and early 2000, the dollar’s value fell from over 300 yen per dollar to about 105 yen per dollar. This trend might be explained by a. higher economic growth in Japan. b. lower interest rates in Japan. c. lower inflation in Japan. d. Japanese purchases of Canadian dollars. Flexible exchange rates a. give governments a greater degree of policy independence than fixed exchange rates. b. make it simpler to engage in international trade than fixed exchange rates. c. produce smaller exchange rate fluctuations than fixed exchange rates. d. impose a greater degree of discipline on the behavior of central banks than fixed exchange rates. A weak dollar would be the best policy if the government wanted to a. reduce the trade balance and lower inflation. b. increase the trade balance and lower inflation. c. reduce imports and increase the trade balance. d. increase exports and reduce the trade balance.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/08/2009 for the course ACCT 101 taught by Professor Jim during the Spring '09 term at CSU Channel Islands.

Page1 / 10

Check - If the CPI in Year 2 equals 110 and the CPI in Year...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online