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In the US the nominal interest rate tends to move pro cyclically.
This means that as ____ increases, the nominal interest rate
____, everything else held constant.
A) real GDP; decreases
B) inflation rate; increases
C) real GDP; increases
D) inflation rate; decreases
E) real interest rate; increases
Suppose that milk benefits from a successful advertising campaign.
This will cause the demand for milk to ____ and become more price
____.
A) decrease; inelastic
B) increase; inelastic
C) decrease; elastic
D) increase; elastic
"Now, as oil prices have skidded to $30 a barrel, new drilling has
dried up in North Dakota, and the flood of wealth and workers is
ebbing" is an example of a statement about a issue.
A) microeconomics
B) macroeconomics
,The fewer substitutes that are available for a good, everything else
held constant, the more price ____ demand will be for the good. The
smaller the proportion of a consumer's budget a good makes up,
the more price _____ demand will be for the good.
A) elastic; elastic
B) inelastic; inelastic
C) inelastic; elastic
D) elastic; inelastic
An increase in the hourly wage rate, everything else held constant,
will cause ____ in the marginal cost of an extra hour of leisure.
A) increase
B) decrease
C) no change
Suppose that Spam is a meat product and is a normal good. Which
of the following would cause the supply of Spam to increase?
A) a decrease in the incomes of Spam consumers
B) increase in the incomes of Spam consumers
C) decrease in the price of Spam
D) increase in the price of Spam
E) decrease in the input costs of manufacturing Spam
,In which of the following situations is the expected rate of inflation
the highest?
A) real interest rate is 1% and nominal interest rate is 1%.
B) real interest rate is 3% and nominal interest rate is 7%.
C) Real interest rate is 11% and nominal interest rate is 8%.
D) real interest rate is 8% and the nominal interest rate is 9%.
E) real interest rate is 15% and nominal interest rate is 13%.
Suppose the US economy is operating below full employment. A
decrease in government spending will cause the _____ gap to in
the short run, everything else held constant.
A) recessionary; shrink
B) inflationary; shrink
C) inflationary; widen
D) recessionary; widen
, Suppose 47-year-old Alan was laid off from his job at the local steel
mill six weeks ago when it closed for routine maintenance. He has
not looked for work during this period, but expects to be
recalled when the mill reopens in three weeks. According to BLS,
Alan would be classified as
A) employed
B) not in the labor force
C) not in the civilian non institutional population
D) unemployed
Suppose 28-year-old Scarlett lost her full-time job at a comic
book store on Wednesday of the reference week of the BLS
survey. She has submitted several applications but has not
obtained a new job by the end of the week. According to BLS
survey, she is
A) employed
B) not in the labor force
C) not in the civilian non institutional population
D) unemployed
The aggregate demand curve of a country is negatively
sloped because an increase in the aggregate price level causes
the real wealth of the country to ___ and the nominal interest
rate to
________________________________________________________ _
.
A) increase; increase
B) decrease; increase
C) increase; decrease
D) decrease; decrease
E) remain unchanged; decrease