Which of the following will cause an increase in economic growth? A) a reduction in the unemployment rate B) a reduction in labor force participation C) an increase in human capital D) a reduction in the stock of physical capital ANSWER C
Date: September 2nd, 2020
An individual who is suffering from money illusion is more concerned with A) real prices than with nominal prices. B) nominal prices than with relative prices. C) relative prices than with nominal prices. D) relative prices than with real prices. ANSWER B
Date: September 2nd, 2020
What is measured on the vertical axis when we draw a graph of long-run aggregate supply? A) output of consumer goods B) real GDP C) production of capital goods D) the price level ANSWER D
Date: September 2nd, 2020
Refer to the above figures. Which panel(s) represent economic growth? A) Panels A and C only B) Panel D only C) Panel A only D) Panels B and D only ANSWER A
Date: September 2nd, 2020
Labor productivity is computed as A) real GDP divided by population. B) real GDP divided by the number of workers. C) per capita real GDP divided by the number of workers. D) per capita real GDP divided by population. ANSWER B
Date: September 2nd, 2020
The aggregate supply curve cannot tell us A) how the total dollar values of spending will ultimately be divided between output and prices. B) how changes in the price level affect quantity demanded of all commodities. C) what the effect of changes in interest rates will be on real GDP. D) anything about the quantity […]
Date: September 2nd, 2020
The values on the axes of the long-run aggregate supply diagram are A) real GDP and interest rates. B) real GDP per year and the price level. C) nominal GDP and the price level. D) real GDP and nominal GDP. ANSWER B
Date: September 2nd, 2020
Which of the following variables can be used to measure labor productivity? A) real GDP B) number of labor hours C) number of workers D) all of the above ANSWER D
Date: September 2nd, 2020
When the production possibilities curve shifts outward, A) the price level rises in the long run. B) the long-run aggregate supply curve is unchanged. C) the long-run aggregate supply curve shifts to the left. D) the long-run aggregate supply curve shifts to the right. ANSWER D
Date: September 2nd, 2020
All of the following are assumptions of the classical model EXCEPT A) inflexible wages. B) self-interest of economic actors. C) pure competition. D) absence of money illusion. ANSWER A
Date: September 2nd, 2020
