Sophia (Macroeconomics) - Unit 1 Milestone 100% solved

Sophia (Macroeconomics) - Unit 1 Milestone 100% solvedWhich of the following make up a country's balance of payments? Capital account and current account Which of the following is NOT part of the expenditure approach to calculating GDP? Labor income If one dollar can purchase 0.74 euros, what is the exchange rate when using U.S. dollars as the base currency? 1.35 Which of the following is the point in the business cycle that marks the lowest period of growth in GDP for a specific period? Trough Which statement below is true of price floors? They lead to surpluses. Which of the following is a reason to learn about macroeconomics? Understanding the reasons behind economic policy decisions can make better citizens. According to the circular flow diagram, which of the following do households purchase from businesses? Final goods and services If a new car cost $1,250 in 1950 and is $30,000 in 2013, prices have increased by a factor of which of the following? 24 Which of the following terms is a relative value of one currency in terms of another? Exchange rate A house with an elasticity score of 3 would be considered a __________ good, while a house with an elasticity score of 0.5 would be considered a(n) _________ good. luxury; normal Which of the statements below is false? A recession cannot usually be seen in GDP. The consumer will bear more of the burden of a tax if demand is which of the following? Inelastic The president gives his annual State of the Union speech on television and discusses the loss of manufacturing jobs to China and the need for the United States to create more jobs in order to make up for this. This describes which of the following types of unemployment? Structural Which of the following is the most significant tool the government can use to reduce the severity of business cycles? Spending Select the statement that corresponds to a shift in the supply curve. A movement that occurs due to factors such as firms having more or less access to resources Which statement below is true of BOTH aggregate supply and aggregate demand? Price level and GDP are on the two axes of the graph. Which statement below about economics is false? Most questions about economics address the central banking system and financial economics. If the government would like to maintain the same growth trajectory for the economy, which of the policy types below should it implement? Neutral policy Which statement below is false regarding the circular flow diagram? It is a common misconception that the circular flow diagram and GDP are related.