Econ 211 Final Exam| ASU Econ 211 Final Exam|100% Verified Questions & Answers| Updated Solution

What are Investment expenditures? (Ans- Firm purchases of capital goods and inventory. What does GDP include? (Ans- Government purchases of equipment used to build roads. What measure of GDP is adjusted for changing prices? (Ans- Real GDP What is the Real Interest Rate? (Ans- The nominal interest rate minus the inflation rate. The inflation rate is measured as (Ans- The percent change in a price index from one year to the next. What is true about the CPI? (Ans- The goods included in the CPI ''basket'' are fixed over time.If the economy is assumed to be closed than what? (Ans- net exports = 0 What is Public Saving? (Ans- Tax revenue plus government expenditures A budget surplus occurs when what happens? (Ans- Tax revenue exceeds government expenditures. What is the primary driver of economic growth? (Ans- Productivity What is a measure of productivity? (Ans- Real GDP per worker T/F: Over the past 100 years, all economies have grown at roughly the same rate. (Ans- FALSE What would most likely lead to a decrease in the quantity of capital per worker in the long-run? (Ans- A decrease in the share of income saved by households.Suppose the amount of capital per worker in an economy increases. As a result, what would happen? (Ans- Productivity grows at a decreasing rate. What are two strategies to promote economic growth? (Ans- 1. Promote free trade 2.