Test #2 actual - Answer Key 1. 2. 3. 4. 5. 6. 7. 8. 9. 10....

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Page 1 Answer Key 1. B 2. A 3. C 4. C 5. A 6. A 7. A 8. A 9. C 10. A 11. C 12. B 13. B 14. B 15. A 16. A 17. C 18. A 19. B 20. A 21. C 22. D 23. A 24. C 25. B 26. A Use the following to answer question 1: Scenario: Good A and Good B The town of York produces two goods, Good A and Good B. The following is information regarding York's production of these two goods and their prices the following three years.
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Page 2 1. (Scenario: Good A and Good B) Using 2006 as the base year, then one would find that the real GDP in 2006: A) is equal to the real GDP in 2007. B) is equal to the nominal GDP in 2006. C) is greater than the real GDP in 2007. D) cannot be calculated. 2. Real per capita GDP is: A) real GDP divided by the population. B) real GDP divided by the amount of capital available in the economy. C) not a good useful measure of human welfare. D) rarely used as a tool to compare countries' possible resources. 3. If all the households and businesses in the economy start saving more during economic hard times, that results in a fall in aggregate income hurting everyone in the economy. This is known as: A) the quantity theory. B) the crowding out theory. C) the paradox of thrift. D) the permanent income hypothesis. Use the following to answer question 4: Table: Pizza Economy III 4. (Table: Pizza Economy III) Considering 2008 as the base year, real GDP between 2008 and 2009 grew at a rate of: A) 53.19%. B) 39.47%. C) –39.47%. D) –58.67%.
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Page 3 5. Long-run economic growth is best measured by: A) a sustained rise in the quantity of goods and services produced by the country. B) the growth of a nation's money supply over time. C)
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Test #2 actual - Answer Key 1. 2. 3. 4. 5. 6. 7. 8. 9. 10....

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