Pre-Test Chapter 7 ed17

Pre-Test Chapter 7 ed17 - Pre-Test Chapter 7 ed17 Multiple...

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Prof Keep Econ Chap 7 ed 17 Pre-Test Chap 7 Page 1 of 5 Pre-Test Chapter 7 ed17 Multiple Choice Questions 1. Real GDP per capita: A. cannot grow more rapidly than real GDP. B. cannot grow more slowly than real GDP. C. necessarily grows more rapidly than real GDP. D. can grow either more slowly or more rapidly than real GDP. 2. In which of the following industries or sectors of the economy is output likely to be most strongly affected by the business cycle? A. military goods B. capital goods C. textile products D. agricultural commodities 3. (Last Word) Declines in stock prices measured by the Dow Jones average: A. are a major cause of recessions. B. usually reduce saving and increase consumption spending. C. usually increase investment and reduce net exports. D. sometimes precede recessions; sometimes do not. 4. If the U.S. unemployment rate is 9 percent, we can infer that: A. the economy is in the expansion phase of the business cycle. B. potential GDP is in excess of actual GDP. C. actual GDP is in excess of potential GDP. D. actual GDP is equal to potential GDP. 5. If Fred's annual real income rises by 8 percent each year, his annual real income will double in about: A. 8-9 years. B. 10-11 years. C. 5-6 years. D. 19-20 years. 6. If a nation's real GDP is growing by 5 percent per year, its real GDP will double in approximately: A. 22 years. B. 20 years. C. 14 years. D. 8 years.
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Prof Keep Econ Chap 7 ed 17 Pre-Test Chap 7 Page 2 of 5 7. Cost-of-living adjustment clauses (COLAs): A. invalidate the "rule of 70." B. apply only to demand-pull inflation. C. increase the gap between nominal and real income. D. tie wage increases to changes in the price level. 8. In the United States, the rate of unemployment is highest for: A. white teenagers.
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Pre-Test Chapter 7 ed17 - Pre-Test Chapter 7 ed17 Multiple...

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