Your grandfather tells you that he earned 7000year in

This preview shows page 7 - 9 out of 9 pages.

32.Your grandfather tells you that he earned $7,000/year in his first job in 1961. You earn $35,000/year in your first job in 2011. You know that average prices have risen steadily since 1961. You earn<INPUT TYPE=\ C) less than 5 times as much as your grandfather in terms of real income.33.Which of the following is a reason why decreases in the price level result in a rise in aggregate expenditure?<INPUT TYPE=\
34.Which of the following functions of money would be violated if inflation were high?
35.Which of the following is a reason why we should consider the federal national debt a problem?
36.A college must decide if it wants to offer more Internet-based classes. This decision involves answering the economic question of "what to produce."<INPUT TYPE=\ A) True37.If a country produces only two goods, then it is not possible to have a comparative advantage in the production of both those goods.<INPUT TYPE=\ B) False38.Excluding underground economy production from measured GDP causes errors in GDP growth estimates inthe long run.<INPUT TYPE=\ A) True39.The natural rate of unemployment consists of frictional unemployment plus structural unemployment.<INPUT TYPE=\ A) True40.An increase in the price of output will cause a firm’s MRP to shift upward.<INPUT TYPE=\ A) True41.If the effective tax rate on capital falls, that will result in the investment demand function shifting to the right.<INPUT TYPE=\ A) True42.If the US economy is growing faster than the rest of the world, then we would expect a surge in US imports.<INPUT TYPE=\ A) True43.
The FOMC meets in Washington DC but the action of conducting open market operations takes place at theNew York Fed (FRBNY).<INPUT TYPE=\ A) True44.During the lead up to Y2K, the Fed, to keep the federal funds rate from rising, had to conduct open market sales. This action is referred to as 'accommodating' the shock to reserve demand.<INPUT TYPE=\ A) True45.Spending by local governments to stimulate or slow down their local economies is an example of fiscal policy.<INPUT TYPE=\
46.If the long-run aggregate supply curve is vertical so is the long-run Phillips curve.<INPUT TYPE=\ A) True47.If savings exceeds investment then the country is running a trade surplus.<INPUT TYPE=\ B) False

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture