2009 B-2 Class Questions Preview

2009 B-2 Class Questions Preview - Business Environment...

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Business Environment & Concepts 2 Class Questions 1 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. 1. CPA-03291 Which of the following is not likely to cause a rightward shift in the aggregate demand curve? a. An increase in wealth. b. An increase in the level of real interest rates. c. An increase in government spending. d. An increase in the general level of confidence about the economic outlook. CPA-03291 Explanation Choice "b" is correct. An increase in real interest rates increases the cost of capital, which shifts the aggregate demand curve to the left. Choice "a" is incorrect. An increase in wealth shifts the aggregate demand curve to the right. Choice "c" is incorrect. An increase in government spending shifts the aggregate demand curve to the right. Choice "d" is incorrect. An increase in consumer confidence shifts the aggregate demand curve to the right. 2. CPA-03307 Suppose real GDP is rising while the overall price level is falling. The most plausible explanation for this is: a. A shift left in the aggregate supply curve. b. A shift right in the aggregate supply curve. c. A shift left in the aggregate demand curve. d. A shift right in the aggregate demand curve. CPA-03307 Explanation Price Level SRAS 1 P 0 P 1 Y 1 Y 0 Real GDP SRAS 0 Choice "b" is correct. If the aggregate supply curve shifts to the right, real GDP would increase and the price level would fall. Choice "a" is incorrect. This would cause real GDP to fall, not rise. Choice "c" is incorrect. This would cause real GDP to fall, not rise. Choice "d" is incorrect. This would cause the overall price level to rise, not fall.
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Business Environment & Concepts 2 Class Questions 2 © 2009 DeVry/Becker Educational Development Corp. All rights reserved. 3. CPA-03396 Assume the following data for the U.S. economy in a recent year: Personal consumption expenditures $5,015 billion Exports $ 106 billion Government purchases of goods/services $1,040 billion M1 $ 262 billion Imports $ 183 billion Gross private domestic investment $ 975 billion Open market purchases by Federal Reserve $ 5 billion Based on this information, which of the following was the U.S. GDP for the year in question? a. $6,953 billion. b. $6,958 billion. c. $6,691 billion. d. $7,215 billion. CPA-03396 Explanation Choice "a" is correct. GDP = G + I + C + E (Exports - Imports) $1,040 billion + 975 billion + 5,015 billion + 106 billion - 183 billion $6,953 billion 4. CPA-03404 What type of unemployment is shown when individuals do not have the qualifications or skills necessary to fill available jobs? a. Frictional. b. Natural. c. Cyclical. d. Structural. CPA-03404 Explanation Choice "d" is correct. By the definition of structural unemployment. Choice "a" is incorrect.
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This note was uploaded on 02/19/2011 for the course BMGT 360 taught by Professor Spina during the Spring '07 term at Maryland.

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2009 B-2 Class Questions Preview - Business Environment...

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