Unformatted text preview: _ 23) ______ 24) ______ 25) ______ rate s. During this period 26) ___
___ A) he nominal interest rate was less than the real interest rate. t
B) he inflation rate exceeded the nominal interest rate, implying a t
negative real interest rate. C) he nominal and real interest rates were equal to each other. t
D) he inflation rate was negative, implying a real interest rate that t
was higher than the nominal interest rate. E) he inflation rate was negative, implying a nominal interest rate t
higher than the real interest rate. The table below shows the total output and prices for an economy that produces only two goods, potatoes and oil. Data is provided for the years 1998 and 2008. Quantities Produced Potatoes Oil (kilograms) (barrels) 1998 2008 1000 1100 50 65 Prices Potatoes Oil
($/kilogram) ($/barrel)
4 6 55
60 4
27) efer to Table 204. What is the real GDP for 1998 if 2008 is the base R
year? A) 10 500 $
B) 6750 $
C) 20 100 $
D) 7975 $
E) 9000 $ 28) n a simple model of the economy with demanddetermined output, the I
equilibrium level of national income is at an income A) here aggregate desired expenditure equals consumption. w
B) here saving equals consumption. w
C) o the left of the point where the AE curve intersects the 45degree t
line. D) o the right of the point where the AE curve intersects the 45t
degree line. E) here aggregate desired expenditure equals the value of total w
output. 29) uppose that the marginal propensity to consume out of disposable S
income is 0.6 and the marginal propensity to import is 0.14. If the net tax rate is 0.1, then what is the marginal propensity to spend in this economy? A) .30 0
B) .40 0
C) .46 0
D) .50 0
E) .60 0 30) acroeconomic equilibrium is described as the combination of M
A) otential output and price level that is on both the AD curve and p
AS curve. B) ll individual demand curves and potential GDP. a 27) ______ 28) ______ 29) ______ 30) ______ C) ll individual demand curves and all individual supply curves. a
D) eal GDP and price level that is on both the AD curve and 45r
degree line. E) eal GDP and price level that is on both the AD curve and AS r
curve. FIGURE 241
31) efer to Figure 241. If the economy is currently in a shortrun R
equilibrium at Y0, the economy is experiencing 31) ______ A) n inflationary output gap. a
B) otentia...
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 Spring '13
 Chris
 National Income

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