Which of the following is most likely to be an indication of lower unemployment.

 

Group of answer choices

A decrease in nominal GDP

A decrease in real GDP

An increase in nominal GDP

An increase in real GDP

 

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Question 2

1 pts

Which of the following is most likely to be an indication of inflation?

Group of answer choices

An increase in real GDP

A decrease in nominal GDP

A decrease in real GDP

An increase in nominal GDP

 

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Question 3

1 pts

Unemployment describes the condition where:

Group of answer choices

any resource sits idle.

equipment and machinery are going unused.

a person cannot get a job, but is willing to work and is actively seeking work.

a person does not have a job, regardless of whether or not they want one.

 

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Question 4

1 pts

The three statistics that are the main focus for those measuring the health of the macroeconomy are:

Group of answer choices

nominal GDP, nominal GDP, and inflation.

nominal GDP, unemployment, and inflation.

real GDP, nominal GDP, and inflation.

real GDP, inflation, and unemployment.

 

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Question 5

1 pts

Savings are generated whenever:

Group of answer choices

current income exceeds current spending.

current spending exceeds current income.

prices are rising.

real GDP exceeds nominal GDP

 

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Question 6

1 pts

For which of the following goods are services are prices most sticky?

Group of answer choices

Airlines tickets

Uber ride share

Haircuts

Coin-operated laundry machines

 

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Question 7

1 pts

If prices are sticky, then a positive demand shock will lead to

Group of answer choices

short-run increase in real GDP

a long-run increase in real GDP

a short-run decrease in real GDP

a long-run decrease in real GDP

 

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Question 8

1 pts

• If prices are flexible positive demand shock will lead to

Group of answer choices

decrease in inventories

Inflation

Deflation

increase in inventories

 

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Question 9

2 pts

A hypothetical economy produces only two goods: Computers, and DVDs as shown in the following table. Assume 2016 as the base year. Calculate the nominal GDP in 2017.

 

Computers

Laptops

Year

Price

Quantity

Price

Quantity

2016

1000

10

1200

10

2017

900

11

1000

12

2018

800

12

900

11

Group of answer choices

19500

23100

21900

25400

 

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Question 10

2 pts

Based on the data in question 9: Calculate the nominal GDP in 2018.

Group of answer choices

21900

25400

19500

25200

 

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Question 11

2 pts

Based on the data in question 9: Calculate the real GDP in 2017.

Group of answer choices

17000

25400

21900

19000

 

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Question 12

2 pts

Based on the data in question 9: Calculate the real GDP in 2018.

Group of answer choices

17000

19000

25200

19500

 

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Question 13

1 pts

Sara purchased gold coins. This can be classified as

Group of answer choices

Financial Investment

Economic Investment

 

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Question 14

1 pts

Contra Costa College purchase computers. This can be classified as

Group of answer choices

Economic Investment

Financial Investment

 

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Question 15

1 pts

GM builds a new manufacturing plant in North Carolina. This can be classified as

Group of answer choices

Financial Investment

Economic Investment

 

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Question 16

1 pts

John purchased 100 municipal bonds. This can be classified as

Group of answer choices

Financial Investment

Economic Investment

 

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Question 17

1 pts

Suppose a family’s income increases by 5% at the same time that inflation is 3%. Then

Group of answer choices

the family’s standard of living is not affected by inflation

the family’s standard of living will fall

the family’s standard of living will not change

the family’s standard of living will increase

 

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Question 18

1 pts

The main source of savings in the economy is

Group of answer choices

Markets

Businesses

Households

Government

 

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Question 19

1 pts

The main source of investment in the economy is

Group of answer choices

Households

Government

Businesses

Markets

 

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Question 20

1 pts

Most of the short-run fluctuations are the result of

Group of answer choices

can’t determine

demand shocks

uncertainty

supply shocks

 

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Question 21

1 pts

Increase in inventories is the result of

Group of answer choices

Positive demand shocks in the short-run

Negative demand shocks in the long-run

Positive demand shocks in the long-run

Negative demand shocks in the short-run

 

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Question 22

1 pts

Inflation reduces the purchasing power of a person’s income and savings.

Group of answer choices

True

False

 

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Question 23

1 pts

Real GDP measures the change in the price level over time.

Group of answer choices

True

False

 

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Question 24

1 pts

Economists refer to purchases of stocks and bonds as “economic investment.”

Group of answer choices

True

False

 

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Question 25

1 pts

The amount of investment in an economy is ultimately limited by the amount of savings in that economy.

Group of answer choices

True

False

 

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Question 26

1 pts

A nation that wants to invest in more newly created capital in the present must be willing to forgo present consumption.

Group of answer choices

True

False

 

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