# Which of the following serves as an example of the

• Test Prep
• 10
• 100% (1) 1 out of 1 people found this document helpful

This preview shows page 3 - 5 out of 10 pages.

##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 6 / Exercise 2
Macroeconomics: A Contemporary Introduction
McEachern
Expert Verified
12.Which of the following serves as an example of the underground or “shadow” economy? a.A woman barters home repairs with her neighbor.b.A teenager babysits regularly and fails to report her income.c.A man sells illegal drugs and fails to report his income.d.All of the above are correct.____ 13.Which entity within the U.S. government is responsible for computing and reporting the consumer price index? ____ 14.For purposes of calculating the CPI, the “housing” category of consumer spending includes the cost of ____ 15.The consumer price index and the GDP deflator are two alternative measures of the overall price level. Which of the following statements about the two measures is correct? Scenario 24-1Grant Smith was a doctor in 1944 and earned \$12,000 that year. His daughter, Lisa Smith, is a doctor today and she earned \$210,000 in 2005. The price index in 1944 was 17.6 and the price index in 2005 was 184.____16.Refer to Scenario 24-1. Lisa Smith’s 2005 income in 1944 dollars is about a.\$20,087.b.\$24,667.c.\$31,022.d.\$36,556.____17.Mavis Corporation has an agreement with its workers to index completely the wage of its employees to the CPI. Mavis currently pays its production line workers \$7.50 an hour and is scheduled to index their wages today. If the CPI is currently about 130 and was 120 a year ago, Mavis should increase the hourly wages of its workers by about
##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
The document you are viewing contains questions related to this textbook.
Chapter 6 / Exercise 2
Macroeconomics: A Contemporary Introduction
McEachern
Expert Verified
____ 18.In Japan in 2000, nominal interest rates were 1.5 percent and the inflation rate was -0.5 percent. The real interest rate was ____ 19.A nation's standard of living is measured by its ____ 20.Real GDP per person a.minus real GDP per person from the previous period equals the growth rate of real GDP per person.b.provides more meaningful comparisons across time and countries than real GDP.c.provides a less useful measure of the standard of living than nominal GDP per person.d.All of the above are correct. ____