A vertical curve that defines the level of full-employment or potential output based on a given amount of resources, efficiency, and technology in the economy is called: A) the short-run aggregate supply curve. B) the long-run aggregate supply curve. C) the aggregate demand curve. D) none of the above. ANSWER B
Date: September 10th, 2020
Given the following information, calculate personal consumption expenditures. GDP $5,000 Gross Private Domestic Investment $1,500 Government Consumption Expenditures and Gross Investment $1,000 Net Exports -$500 ANSWER GDP = C + I + G + F $5,000 = C + $1,500 + $1,000 + (-$500 ) $5,000 – $1,500 – $1,000 + $500 = C […]
Date: September 10th, 2020
The aggregate demand curve is the total quantity of an economy’s A) intermediate goods demanded at different inflation rates. B) intermediate goods demanded at a particular inflation rate. C) final goods and services demanded at a particular inflation rate. D) final goods and services demanded at different inflation rates. ANSWER D
Date: September 10th, 2020
The monetary liabilities of the Federal Reserve include A) securities and loans to financial institutions. B) currency in circulation and reserves. C) securities and reserves. D) currency in circulation and loans to financial institutions. ANSWER B
Date: September 10th, 2020
If Toyota sells a $1000 bond in the United States, the bond is a A) foreign bond. B) Eurobond. C) Tokyo bond. D) currency bond. ANSWER A
Date: September 10th, 2020
According to a study by Blinder et al., on average, fixed costs account for about 44 percent of firms’ total costs of production, suggesting that fixed costs are more important to many firms’ decision-making processes than standard theory would suggest. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
If a $10,000 face-value discount bond maturing in one year is selling for $5,000, then its yield to maturity is A) 5 percent. B) 10 percent. C) 50 percent. D) 100 percent. ANSWER D
Date: September 10th, 2020
Both ________ and ________ are monetary liabilities of the Fed. A) securities; loans to financial institutions B) currency in circulation; reserves C) securities; reserves D) currency in circulation; loans to financial institutions ANSWER B
Date: September 10th, 2020
An adverse oil price increase will shift the short-run aggregate supply curve: A) leftward. B) rightward. C) will not shift. D) none of the above. ANSWER A
Date: September 10th, 2020
The yield to maturity for a perpetuity is a useful approximation for the yield to maturity on long-term coupon bonds. It is called the ________ when approximating the yield for a coupon bond. A) current yield B) discount yield C) future yield D) star yield ANSWER A
Date: September 10th, 2020
