Macroeconomics 8th Edition by Glenn Hubbard and O’Brian, Chapter 6 Exam with Correct Answers

Macroeconomics 8th Edition by Glenn Hubbard and
O’Brian, Chapter 6 Exam with Correct Answers


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runzfluctuationszinzoutputzandzemployment,zandzlong-runzeconomiczgrowth.



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outputzandzlivingzstandardszdecline.



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Economieszexperiencezazpositivezgrowthztrendzoverzthezlongzrun,zbutzexperiencezsignificantzvariabilityzinzt
hezshortzrun



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valuezofzfinalzgoodszandzserviceszproducedzwithinzthezborderszofzazcountry,zcorrectedzforzpricezchanges.



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ThiszyearzHarry'szagainzproducedz10,000zlargezpepperonizpizzasz(identicalztozlastzyear'szpizzas),zbutzsoldzth
emzforz$12zeach.zBasedzonzthiszinformationzwezcanzconcludezthatzHarry'szproductionzofzlargez-
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higherzcrimezrateszaszthezunemployedzseekztozreplacezlostzincome.



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zCORRECTzANSWER-realzGDP,zinflation,zandzunemployment.

, 10.zWhichzofzthezfollowingzcountrieszwouldzeconomistszsayzdefinitivelyziszachievingzmodernzeconomiczgro
wth?z-zCORRECTzANSWER-Nigeriazexperienceszaz2.7zpercentzincreasezinzrealzGDPzperzperson.



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ubles.zWhatzhappensztozrealzGDP?z-zCORRECTzANSWER-realzGDPzdoesn'tzchange



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dzsoldzatzazpricezofz$100zeach.zInzyearz2,z12,000zMP3zplayerszarezproducedzandzsoldzatzazpricezofz$80zeach
.zWhichzofzthezfollowingzstatementszisztrue?z-zCORRECTzANSWER-
RealzGDPzincreaseszwhileznominalzGDPzdecreases



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zCORRECTzANSWER-morezoutputzmeanszgreaterzconsumptionzopportunities




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Indicatezthatzsocietyzisznotzusingzazlargezportionzofztheztalentzandzskillszofzitszpeople



16.zInflationzisztroublesomeztozconsumerszbecausezofzthezfollowingzeffects,zexcept:z-zCORRECTzANSWER-
Workers'zwageszmayzbezrisingzfasterzthanzthezoverallzprices



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zCORRECTzANSWER-AzdecreasezinzrealzGDP




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zCORRECTzANSWER-thezfamily'szstandardzofzlivingzwillzfall




19.zRapidzandzsustainedzeconomiczgrowthzofznations:z-zCORRECTzANSWER-Iszazmodernzphenomenon



20.zThezIndustrialzRevolutionzbeganzin:z-zCORRECTzANSWER-Englandzinzthezlatez1700's