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Economics Paper

п»їAttempt 1

Problem 1

5 out of 4 details

Suppose that a farmer expands wheat and sells that to a baker for $1, the baker makes loaf of bread and markets it into a store for $2, plus the store sells it to the customer for $3. This deal increases GROSS DOMESTIC PRODUCT byВ В

Answer

Picked Answer:

$3.

Question a couple of

4 out of four points

If production remains to be the same and prices dual, then true GDPВ В

Answer

Picked Answer:

is constant and nominal GROSS DOMESTIC PRODUCT doubles.

Issue 3

some out of 4 points

If the GDP price deflator is installment payments on your 0 and nominal GDP is $12, 000 billion dollars, then genuine GDP is В

Response

Selected Answer:

$5, 500 billion.

Issue 4

four out of 4 factors

The consumer selling price index (CPI)В

Answer

Chosen Answer:

measures the price of a fixed basket of good and solutions that common households order.

Question 5

4 away of 4 points

In the national profits accounts, В allВ of the following are grouped as govt purchasesВ except: В В

Solution

Selected Response:

payments made to Social Secureness recipients.

Issue 6

some out of 4 points

Your grandparents tell you that in 60 they paid $0. 35 for entrance to a video. В The purchase price index in 1960 was 30. В The price index today is usually 171. В What is the cost your grandparents paid in today's dollars? В В

Response

Selected Answer:

$1. 99

Question six

4 out of 4 points

Which will of the following is a kind of open-market operation? В В

Answer

Picked Answer:

The Fed sells Treasury charges to the general public.

Question 8

4 out of 4 points

Consider the following stand

YearВ В В В В В В В В В В В В В В Inflation Rate В В В В В В В В В В В В Nominal Interest Rate

1В В В В В В В В В В В В В В В В В В В В В В В В В 5% В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В 10%

2В В В В В В В В В В В В В В В В В В В В В В В В 10% В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В В 5%

By how much provides the real interest rate changed among year you and season 2? В В

Answer

Selected Solution:

It has decreased 10 percent.

Query 9

four out of 4 items

Which in the following coverage actions by Fed probably will increase the cash supply? Answer

Selected Solution:

reducing hold requirement.

Question 10

four out of 4 items

If the Provided wishes to lower the money supply, it would more than likely: В

Answer

Selected Response:

sell government bonds through its open market operations.

Question 14

4 out of 5 points

An increase in the interest price: В

Solution

Selected Response:

reduces designed investment, as the interest rate is a cost of credit to financing investment assignments.

Question 12

4 out of 4 points

A liquidity pitfall occurs the moment:

Answer

Selected Answer:

interest levels fall thus low that monetary policy is no longer powerful.

Question 13

4 out of 4 points

Which will interest rate will the Federal Hold try to influence by the Open up Market Functions? В

Response

Selected Response:

Federal Funds rate.

Query 14

four out of 4 factors

The issue facing the Federal Arrange in the event that a great unfavorable source shock goes the economy away from the natural level (i. at the., long-term trend) of end result and employment is that monetary policy can either return output to the organic rate, good results . a ______ price level, or allow the price level to return to it is original level, but with a ______ standard of output and employment inside the short run. В В

Solution

Selected Solution:

higher; reduced

Question 12-15

4 away of 4 points

When a Canadian investor buys $1 million worth of stock in an American organization, how does this transaction come in the nationwide income accounts of the United States? Response

Selected Solution:

The capital and financial consideration rises by $1 million, since this is an increase in options for foreign...

19.08.2019

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