Nsu Mc 8

Question 1

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4 out of 4 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

Answer

Selected Answer:

$3.

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Question 2

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4 out of 4 points

If production remains the same and all prices double, then real GDP

Answer

Selected Answer:

is constant and nominal GDP doubles.

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Question 3

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4 out of 4 points

If the GDP price deflator is 2.0 and nominal GDP is $10,000 billion, then real GDP is

Answer

Selected Answer:

$5,000 billion.

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Question 4

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4 out of 4 points

The consumer price index (CPI)

Answer

Selected Answer:

measures the price of a fixed basket of good and services that typical households purchase.

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Question 5

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4 out of 4 points

In the national income accounts, all of the following are classified as government purchases except:

Answer

Selected Answer:

payments made to Social Security recipients.

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Question 6

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4 out of 4 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?

Answer

Selected Answer:

$1.99

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Question 7

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4 out of 4 points

Which of the following is a type of open-market operation?

Answer

Selected Answer:

The Fed sells Treasury bills to the public.

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Question 8

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4 out of 4 points...