chapter 26 homework - C) It rose by $600 D) It rose by...

chapter 26 homework
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1.  If the annual inflation rate is 5 percent a year, about how many years will it take for the price level to  double? A) 10 years B) 12 years C) 14 years D) 16 years 2.  If the Consumer Price Index was 166.6 in one year and 172.2 in the next year, then the rate of  inflation from one year to the next was: A) 3.4% B) 4.1% C) 5.4% D) 6.0% 3.  If the average level of nominal income in a nation is $44,000 and the price level index is 175, the  average real income would be about: A) $18,857 B) $25,143 C) $44,000 D) $77,000 4.  In Year 1, the price level was 120 and the average nominal income was $30,000. In Year 2, the  price level was 125 and the average nominal level of income was $32,000. What happened to real  income from Year 1 to Year 2? A) It fell by $400 B) It rose by $400
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Unformatted text preview: C) It rose by $600 D) It rose by $2,000 5. If the natural rate of unemployment was 6 percent, the current unemployment rate was 12 percent, and the nominal GDP was $4,000 billion, then according to Okun's law the economy would have sacrificed: A) $240 billion in potential output B) $480 billion in potential output C) $700 billion in potential output D) $840 billion in potential output 6. Only two resources, capital and labor, are used in an economy to produce an output of 600 million units. If the total cost of capital resources is $300 million and the total cost of labor resources is $100 million, then the per-unit production costs in this economy are: A) $0.67 million B) $1.50 million C) $2.00 million D) $3.00 million...
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