03-02-2009 83901 PM

03-02-2009 83901 PM - 3) trend-line would indicate the A)...

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Exam Name f, MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answ ers the question. 1) If nominal national income increased 20 percent over a certaurperiod of time while eal national income increased by 10 percent then A) the price level has increagedJby-app^oxunatelyJ^Eercent. B) everybody in the economy became worse off. ^ lO /G C) inflation has decreased during this time period. D) the price level has declined by about 10 percent. 'E) the labour force increased by 10 percent. 1) A 2) ooo ~ ooo 2) Suppose matJnJi>9j^heJT}igjrhje^ manufacturers_p_roduced 2 irdlUco^cai^ pricedjit. $20 000 each, and, in 1999, they produced IjiuJlpjuafSjjrioed^$4QjQOO eadCCejeris p> resulting effect on ndrrnrtaTnarlbnal incomejs— A) a decrease because the price of each car decreased. B) a decrease because fewer cars were produced. \ y H,4{) 00(3 ~ 4" O t> O O C) an increase because the price of the cars produced has doubled. D) no change. E) insufficient information to know. 3) On a graph showing real national income on the vertical axis and years on the horizontal axis, the
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Unformatted text preview: 3) trend-line would indicate the A) distribution of income. B) inflation rate. C) business cycle. D) unemployment rate. E) real long-run growth rate. P 4) Suppose Honest Rob's Used Cars buys a used car for $2 000 and resells it for $3 000. The result of Honest Joe's transaction is to A) leave the value of national product unchanged. B) increase the value of national product by $1 000. C) decrease the value of national product by $1 000. D) increase the value of national product by $3 000. E) decrease the value of national product by $3 000. 5) To calculate the economy's output gap A) real national incomes should is used. B) the unemployment rate should be subtracted from the inflation rate. C) nominal national incomes is used. D) actual income should be subtracted from potential national income. E) the percentage change in the general price level between the first and second period is used. 4)...
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This note was uploaded on 01/15/2012 for the course ECON 104 taught by Professor Peter during the Summer '09 term at Camosun College.

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