MACROECONOMICS FINAL
EXAM
130+ (Latest 2025-2026 Edition) 100% Verified Q&A + Answer Key
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,Question 1
consumer price index.
Correct Answer
Which of the following price indices comes closest to measuring the cost of living of the typical
household?
Question 2
121
Correct Answer
Refer to Table 2-1.Assume the market basket for the consumer price index has three products---
Cokes, hamburgers, and CDs---with the above values in 2022 and 2023 for price and
quantity.Assuming that 2022 is the base year, the CPI for 2023 equals
Question 3
21%
Correct Answer
Refer to Table 2-1.Assuming again that 2022 is the base year and using the CPI that you calculated in
question #2, what was the inflation rate between 2022 and 2023?
Question 4
9%
Correct Answer
Refer to Table 2-2.Suppose that the data in the table above reflect price levels in the economy.What
was the inflation rate between 2017 and 2018?
,Question 5
substitution bias
Correct Answer
When the price of gasoline rises, some consumers begin riding their bikes more frequently or riding
the bus instead of driving their cars. The fact that the CPI does not fully account for such changes in
consumer behavior is called
Question 6
$84,775
Correct Answer
Suppose your grandfather earned a salary of $12,000 in 1964. If the CPI is 31 in 1964 and 219 in 2016,
then the value of your grandfather's salary in 2016 dollars is approximately -
Question 7
$5.63
Correct Answer
Refer to Table 2-3. Looking at the table above, real average hourly earnings in 2015 were
Question 8
Scenario II: Nominal interest rate is 9%, inflation is 6%.
Correct Answer
Suppose you want to open a jewelry store in your home town. You consider taking out a small
business loan from a local bank. Which of the scenarios below would you prefer as a borrower?
, Question 9
7%
Correct Answer
If real GDP per capita doubles between 2008 and 2023, what is the average annual growth rate of real
GDP per capita?
Question 10
5%
Correct Answer
The CPI in 1980 was 82, and the CPI in 2006 was 202. What was the average inflation rate over this
26-year period?
Question 11
$9,365
Correct Answer
If real GDP per capita in Kenya is $8,000, what will real GDP per capita in Kenya be after 5 years if real
GDP per capita grows at an annual rate of 3.2%?
Question 12
a college education
Correct Answer
Which of the following is an example of human capital?
EXAM
130+ (Latest 2025-2026 Edition) 100% Verified Q&A + Answer Key
Solutions
100% Guarantee Pass
✓ This Exam contains: Macroeconomics Final Exam
✓ 100% Accurate Questions and Answers
✓ 100% Guarantee Pass - Verified by Experts
✓ Each Question Includes The Correct Answer
✓ Expert-Verified
,Question 1
consumer price index.
Correct Answer
Which of the following price indices comes closest to measuring the cost of living of the typical
household?
Question 2
121
Correct Answer
Refer to Table 2-1.Assume the market basket for the consumer price index has three products---
Cokes, hamburgers, and CDs---with the above values in 2022 and 2023 for price and
quantity.Assuming that 2022 is the base year, the CPI for 2023 equals
Question 3
21%
Correct Answer
Refer to Table 2-1.Assuming again that 2022 is the base year and using the CPI that you calculated in
question #2, what was the inflation rate between 2022 and 2023?
Question 4
9%
Correct Answer
Refer to Table 2-2.Suppose that the data in the table above reflect price levels in the economy.What
was the inflation rate between 2017 and 2018?
,Question 5
substitution bias
Correct Answer
When the price of gasoline rises, some consumers begin riding their bikes more frequently or riding
the bus instead of driving their cars. The fact that the CPI does not fully account for such changes in
consumer behavior is called
Question 6
$84,775
Correct Answer
Suppose your grandfather earned a salary of $12,000 in 1964. If the CPI is 31 in 1964 and 219 in 2016,
then the value of your grandfather's salary in 2016 dollars is approximately -
Question 7
$5.63
Correct Answer
Refer to Table 2-3. Looking at the table above, real average hourly earnings in 2015 were
Question 8
Scenario II: Nominal interest rate is 9%, inflation is 6%.
Correct Answer
Suppose you want to open a jewelry store in your home town. You consider taking out a small
business loan from a local bank. Which of the scenarios below would you prefer as a borrower?
, Question 9
7%
Correct Answer
If real GDP per capita doubles between 2008 and 2023, what is the average annual growth rate of real
GDP per capita?
Question 10
5%
Correct Answer
The CPI in 1980 was 82, and the CPI in 2006 was 202. What was the average inflation rate over this
26-year period?
Question 11
$9,365
Correct Answer
If real GDP per capita in Kenya is $8,000, what will real GDP per capita in Kenya be after 5 years if real
GDP per capita grows at an annual rate of 3.2%?
Question 12
a college education
Correct Answer
Which of the following is an example of human capital?
