Submitted by alixmac86 to the category Business and Industry on 07/14/2012 05:49 PM
• Question 1
1 out of 1 points
Suppose that a farmer grows wheat and sells it to a baker for $1, the baker makes bread and sells it to a store for $2, and the store sells it to the customer for $3. This transaction increases GDP by
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Selected Answer:
$3.
• Question 2
1 out of 1 points
If production remains the same and all prices double, then real GDP
Answer
Selected Answer:
is constant and nominal GDP doubles.
• Question 3
1 out of 1 points
If the GDP price deflator is 2.0 and nominal GDP is $10,000 billion, then real GDP is
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Selected Answer:
$5,000 billion.
• Question 4
1 out of 1 points
The consumer price index (CPI)
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measures the price of a fixed basket of good and services that typical households purchase.
• Question 5
1 out of 1 points
In the national income accounts, all of the following are classified as government purchases except:
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payments made to Social Security recipients.
• Question 6
1 out of 1 points
Your grandparents tell you that in 1960 they paid $0.35 for admission to a movie. The price index in 1960 was 30. The price index today is 171. What is the price your grandparents paid in today’s dollars?
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Selected Answer:
$1.99
• Question 7
0 out of 1 points
Which of the following is a type of open-market operation?
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Selected Answer:
The Fed buys foreign currency in the exchange market.
• Question 8
1 out of 1 points
Consider the following table
Year Inflation Rate Nominal Interest Rate
1 5% 10%
2 10% 5%
By how much has the real interest rate changed between year 1 and year 2?
Answer
Selected Answer:...
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