SQ-Part1-Sp09-Ans

SQ-Part1-Sp09-Ans - Sample Questions, Part 1, Chapters 4-8...

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Sample Questions, Part 1, Chapters 4-8 Spring 2009 CHAPTER 4 [1]What are the three important macroeconomic goals about which most economists, and society at large, agree? 1. economic growth, full employment, and low interest rates 2. economic growth, full employment, and stable prices 3. economic growth, zero unemployment, and falling prices 4. economic growth, low unemployment, and a balanced budget 5. economic growth, a balanced budget, and balanced international trade [2]The two phases of the business cycle are (1)high economic growth and low economic growth (2)expansion and contraction (3)expansion and depression (4)high inflation and low inflation (5)potential economic growth and actual economic growth [3]At the peak of a business cycle, employment and GDP are (1)at their lowest (2)at their highest (3)rising (4)falling (5)it is impossible to state for certain what is happening to employment and GDP [4]If the economy is currently experiencing a high unemployment rate, the greatest cost is (1)extra government spending (2)rewarding those who do not work but collect government benefits (3)lost output (4)higher living standards (5)the extra cost of funding job fairs [5]During the Great Depression, the unemployment rate climbed close to (1)10 percent (2)5 percent (3)15 percent (4)25 percent (5)20 percent [6]The inflation rate has been positive throughout which of the following periods? (1)1920-2003 (2)1920-1940 (3)post-1955 (4)pre-1955 (5)all years for which data are available
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2 CHAPTER 5 [7]Which of the following would be classified as private investment? (1)an individual’s purchase of a used car (2)a family’s purchase of groceries (3)an individual’s purchase of a General Electric bond (4)a family’s purchase of a newly built home (5)a family’s purchase of a new car [8]If consumption expenditures increased by $150 million, while GDP remained the same, which of the following could have occurred, all else equal? (1)Exports increased by $150 million. (2)Imports decreased by $150 million. (3)Net exports increased by $150 million. (4)Net exports decreased by $150 million. (5)Private investment increased by $150 million. [9]Which of the following would not be included in government purchases ? (1)the purchase of a computer by a government agency (2)welfare payments (3)wages of government employees (4)the purchase of a police car (5)spending on a new missile program [10]A real variable is one that is (1)not adjusted for the dollar’s changing value (2)measured in current dollars (3)adjusted for the dollar’s changing value (4)not measured in terms of goods and services (5)not adjusted for changes in the price level [11]To be considered employed, a person must have worked at least __________ hour(s) during the previous week (1)40 (2)20 (3)10 (4)12 (5)1
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3 [12]Suppose an economy has 90,000 employed persons and 10,000 unemployed persons, the unemployment rate is (1)11.1% (2)10% (3)5% (4)20% (5)90%
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SQ-Part1-Sp09-Ans - Sample Questions, Part 1, Chapters 4-8...

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