Quiz - Midterm

Quiz - Midterm - Points Awarded 159.00 Points Missed 1.00...

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Points Awarded 159.00 Points Missed 1.00 Percentage 99.4% 1. Comparing other industrial countries' inflation rates with those of the United States since the early 1980s we see that the A) experiences have been similar with inflation rates in recent years less than those in the early 1980s. B) United States has had much higher rates. C) other industrial countries have had much higher rates. D) experiences have been very different between the two. Points Earned: 1.0/1.0 Correct Answer(s): A 2. At the beginning of the year, Tom's Tubes had a capital stock of 5 tube inflating machines.During the year, Tom scrapped 2 old machines and purchased 3 new machines. Tom's capital stock at the end of year equals A) 1 machine. B) 2 machines. C) 3 machines. D) 6 machines. Points Earned: 1.0/1.0
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Correct Answer(s): D 3. The country of Erdf has net exports of $5 million. Government expenditure on goods and services are $15 million and the government has a budget surplus of $5 million. Investment is $5 million. Private saving in Erdf is ________. A) $10 million B) zero C) $15 million D) $5 million Points Earned: 1.0/1.0 Correct Answer(s): D 4. In the country of Darrowby, net domestic income at factor cost is $2.0 million. Gross domestic product is $3.0 million, and depreciation is $0.5 million. Indirect taxes less subsidies ________. A) are $1 million B) are $0.5 million C) cannot be calculated D) are -$0.5 million Points Earned: 1.0/1.0 Correct Answer(s): B
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5. In an economy, 23 million people are employed and 2 million are unemployed, but 5 million part-time workers would prefer full-time work. What is the unemployment rate? A) 23.2 percent B) 6.7 percent C) 8 percent D) 25 percent Points Earned: 1.0/1.0 Correct Answer(s): C 6. In the figure, when the real wage rate is $10 an hour, ________. A) a shortage of labor exists and the real wage rate will rise B) the demand for labor will increase C) the demand for labor will decrease D) a surplus of labor exists and the real wage rate will fall Points Earned: 1.0/1.0 Correct Answer(s): A
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7. When the real wage rate is greater than the equilibrium wage rate, job search ________ and unemployment ________ the natural unemployment rate. A) increases; equals B) increases; is greater than C) decreases; is greater than D) decreases; is less than Points Earned: 1.0/1.0 Correct Answer(s): B 8. The figure above shows the aggregate demand, short-run aggregate supply, and long-run aggregate supply curves for the economy of Tomorrowland. The economy is currently at point A. A demand-pull rise in the price level will initially move the economy to point ________ and to point ________. A) E when aggregate demand increases; D when the wage rate rises B) B when aggregate demand decreases; C when the wage rate rises C) E; A when aggregate demand changes D) C when the wage rate rises; D when aggregate demand increases Points Earned: 1.0/1.0 Correct Answer(s): A
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9. In the above figure, suppose the economy starts at point A. The short-run response to a decrease in the growth rate
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Quiz - Midterm - Points Awarded 159.00 Points Missed 1.00...

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