Macroeconomics Quiz # 20

A stagflation can turn into a cost-push inflation process when _______.

The theter of money rate

The quantity of money persistently decreases.

The money wage rate decreases

A nation's prosperity is sometimes measured in terms of ___________.

Increased capital formation

GDP per capita

One-half

Productivity

One reason the ad curve is downward sloping is the __________ effect.

Supplied of all goods and services at different price levels, ceteris paribus.

Supply side

Wages and prices are flexible

Interest rate

Upward sloping; vertical

A recession tends to make a _____________________.

Value of supply; value of demand

Trade deficit larger

Trade deficit smaller

The most significant difference between a partnership and a sole proprietor is the ________.

Number of people contributing resources

Ease of forming and setting up the structure

To protect the owners' personal assets

The number of people contributing resources

A rise in the money wage rate with no change in potential gdp creates ______.

Leftward shift of the SAS curve and no change in the LAS curve.

There is no cyclical inflation.

Potential GDP is independent of the price level.

The money wage rate increases faster than the price level.

Aggregate demand is more likely to _________________ than aggregate supply in the short run.

Shift substantially.

Remain unchanged.

Decrease substantially.

Increase ...

An increase in current income taxes ______ the supply of loanable funds today because it ______.

Falls; decreases and investment increases

Decreases; decreases disposable​ income, which decreases saving.

Decreases the supply of loanable funds today because households with larger expected future income will save less today increases the demand for loanable​ funds; rises.

Increases, decreases.

Consumption depends positively on ______ and investment depends negatively on ______.

-the real interest rate; disposable income

-public saving; private saving

-private saving; public saving

-disposable income; the real interest rate

Durable goods and non-durable goods comprise approximately ________ of the supply side of the gdp.

1%

20%

45%

80%

In rbc theory, the lower the real interest rate, other things remaining the same, the ______ today.

The price level and real GDP BOTH increase.

Changes in the growth rate of money

A rise in the real wage rate

Smaller is the supply of labor.

Presently, gdp is ________ to compensate for the costs of environmental damage.

Fully adjusted

Not adjusted

Adjusted on a chainweight basis

Partially

The immediate change is ______ in m1 of $1,000 and ______ in m2.

An​ increase; no change

An​ increase; an increase.

A​ decrease; a decrease

None of these

The open market operations of the fomc are the _______________ tool of the fed.

Reserve requirement.

Debt monetiainz must not occur

Chicago

Chairperson

Money market securities are sometimes referred to as cash equivalents because _____.

They are safe and marketable.

They are not liquid.

An investor in a T-bill earns interest

None of these

The compounding effect ________ savers and _________ borrowers.

Help; hurts

Interest; vertical

Hurts; help

None of these

A government budget deficit ______ the real interest rate because ______.

Raise; investment

​raises; the demand for loanable funds increases

Increases the supply of ​lowers;

Private​ saving, and increases investment

Hubble's law was discovered using measurements of two properties of a galaxy: _______ and _______.

Distance; recession velocity

The viewing angle

Supernova luminosity

Cepheid variables

The broadest measure to adjust nominal gdp for price changes is _____.

The GDP price index

Not current production

An oven bought by a homeowner

None of these

A stagflation can turn into a cost-push inflation process when _______.

The money wage rate decreases

The quantity of money persistently decrease

Taxes consistently increase

The quantity of money persistently increases

In the _____, firms change the underlying technology while holding cumulative output constant.

Learning curve

Experience curve

Minimum efficient scale

Maximum efficient scale

________ exposure deals with cash flows that result from existing contractual obligations.

Operating

Transaction

Translation

Economic

Transaction.

Budget deficits automatically __________ during recessions and __________ during expansions.

Increase, decrease

Decrease, increase

Increase, increase

All of this

The nyse hybrid market allows _____.

Brokers to send orders directly to a specialist

Individuals to send orders directly to an electronic system

Brokers to send orders either to an electronic system or to a specialist

Individuals to send orders directly to a specialist

A population that is growing logistically _____.

The carrying capacity of its environment

Contains many more prereproductive than reproductive individuals

If there are no limiting factors

Grows fastest at an intermediate population density

A logistic equation

Inflation is best understood as the rate at which __________.

The government should not take an active role in the government

Increasing government spending

Central Intelligence Agency

A retirement benefit for citizens

Price for goods and services increase

The quantity of money in an economy and the _____________________ are inextricably intertwined.

Value of assets for loans

Quantity of credit for loans

Financial stress in the banking system

Extraordinary gains that can be made with money

Stagflation occurs when prices ______ and output ______.

Fall; falls

Fall; increases

Rise; falls

Rise; increases

By about 2050, the ___________ populations in _____________ are expected to boom.

Elderly; high income countries

Youth; high income countries

Youth; low income countries

Elderly; low-income countries

In order to take out the effect of _____________, an adjustment must be made for price changes.

Inflation

Recession

Growth

All the above