Finance multichoice questions Academic Essay – Write My School Essay

Finance multichoice questions

Unplanned inventory investment represents the difference between….

Potential GDP and Actual GDP

Actual GDP and Planned AE

Real GDP and Nominal GDP

GDP and Net Domestic Product

3 points   Save Answer

Question 2

_____________ unemployment is the result of an economic downturn that drives actual GDP below potential GDP.

frictional

structural

natural

cyclical

seasonal

3 points   Save Answer

Question 3

Cyclical unemployment will only exist when….

Potential GDP exceeds Actual GDP

Actual GDP exceeds Planned AE

Nominal GDP exceeds Real GDP

Actual GDP exceeds Potential GDP

3 points   Save Answer

Question 4

Due ot ever-accelerating technological growth, _________________ unemployment is on the rise worldwide.

frictional

cyclical

seasonal

structural

3 points   Save Answer

Question 5

In order for the macroeconomic goal of stable prices to be achieved….[choose two responses]

Potential GDP must equal Actual GDP

Actual GDP must equal Planned AE

Unplanned Inventory Investment must = 0

Potential GDP must equal Planned AE

3 points   Save Answer

Question 6

Every dollar of spending in our economy generates a dollar of …. [choose two responses]

profit

income earned

revenue

investment

3 points   Save Answer

Question 7

All else remaining constant, _________________ is related directly to changes in economic output and inversely to changes in the population.

potential GDP

the labor force

per-capita real GDP

nominal GDP

3 points   Save Answer

Question 8

An economy that is in equilibrium will be producing at a level of output equal to ___________.

actual GDP

potential GDP

real GDP

planned AE

3 points   Save Answer

Question 9

Real GDP increases only when ___________ grows faster than the price level.

actual GDP

potential GDP

per-capita real GDP

nominal GDP

planned AE

3 points   Save Answer

Question 10

GDP is always greater than NDP (net domestic product) due to ___________. [choose two responses]

negative net investment

unplanned inventory investment

consumption of fixed capital

depreciation of the capital stock

3 points   Save Answer

Question 11

Price instability (usually inflation) represents the difference between….

Potential GDP and Actual GDP

Actual GDP and Planned AE

Real GDP and Nominal GDP

GDP and Net Domestic Product

3 points   Save Answer

Question 12

C+I+G+(X-M) = __________

Potential GDP

Per-capita GDP

Planned Aggregate Expenditures

Actual GDP

3 points   Save Answer

Question 13

During a particular period of time when the CPI increased from 100 to 130, suppose the price of housing has increased by 32%, the price of medical care has increased by 38%, the price of food has increased by 25%, the price of gasoline has increased by 28%, and the price of a computer has decreased by 33%. Which of these goods LED inflation and are now likely to be purchased in smaller quantities by the average American? [check ALL responses that apply]

housing

medical care

food

gasoline

computers

3 points   Save Answer

Question 14

If prices remain constant over time, what must happen for NOMINAL GDP to rise?

inflation

real per-capita GDP must rise

economic growth must occur

the unemployment rate must fall

3 points   Save Answer

Question 15

The annual inflation rate is the yearly percent change in the ….

real GDP

CPI

unemployment rate

interest rate

3 points   Save Answer

Question 16

The difference between Real GDP and Nominal GDP reflects the degree to which we are acheiving the macroeconomic goal of ….

stable prices

full employment

economic growth

equitable distribution of income

3 points   Save Answer

Question 17

The Nissan Murano that you bought in 2004 is sold in year 2010 for the same nominal amount. But the cpi has increased from 150 to 200 in that same period. How does the value of the money you get from the sale of the car in 2010 compare to the value of money that you paid back in 2004? This car has ….

appreciated by over 34%

appreciated by 30-34%

appreciated by 25%

not changed in value

depreciated by 25%

depreciated by 30-34%

depreciated by over 34%

3 points   Save Answer

Question 18

According to the hypothetical CPI and Nominal GDP data presented below, What is happening to real output in the 2010-2015 period?

macrodata.jpg

increase

decrease

no change

4 points   Save Answer

Question 19

According to the hypothetical CPI, GDP, and population data presented above, what is happening to PER-CAPITA real output in the 2000-2015 period?

increase

decrease

no change

3 points   Save Answer

Question 20

According to the hypothetical CPI, GDP, and population data presented above, what is happening to real output in the 2005-2010 period?

increase

decrease

no change

3 points   Save Answer

Question 21

According to the hypothetical CPI, GDP, and population data presented above, what is happening to PER CAPITA real output in the 2000-2005 period?

increase

decrease

no change

3 points   Save Answer

Question 22

If taxation were the only leakage from an economy and the marginal tax rate = .10 , what fraction of any change in gross income will become a change in disposable income?

10

.10

.90

9

none of the above

3 points   Save Answer

Question 23

If import spending were the ONLY leakage from an economy and the marginal propensity to import is one-third, what fraction of any change in income will survive the leakage and go on to start the next round of spending?

one third

two thirds

3/2 or one and one half

3/1 or three

none of the above

3 points   Save Answer

Question 24

The existence of financial markets implies that there will be the injection of ____ and the leakage of ____ .

I , G

G , T

X , M

S , I

I , S

I(unplanned) , S

3 points   Save Answer

Question 25

In the full (“real world”) model of the economy there are three leakages and three injections.
The first leakage to have it’s effect is the leakage of _________.

X

S

M

T

G

C(domestic)

Yd

3 points   Save Answer

Question 26

Associate the symbols in the equation below with the descriptions.

I(net)

G

X

M

C

X(net)

I(gross)
A.
spending by US businesses on capital goods or inventory
B.
spending on public goods and services
C.
spending by Americans on foreign goods and services
D.
spending on US output from foreign sources
E.
the largest single source of spending in the US economy
F.
negative value during trade deficits
G.
positive when the nation’s capital stock expands

3 points   Save Answer

Question 27

Businesses respond in a typical way to widespread positive unplanned inventory investment (+Iu)
All else remaining constant, which of the following occurs?

AD rises

AD falls

AS rises

AS falls

3 points   Save Answer

Question 28

Businesses respond to widespread negative unplanned inventory investment (-Iu)
All else remaining constant, which of the following occurs?

AD rises

AD falls

AS rises

AS falls

3 points   Save Answer

Question 29

Households and businesses sense that the business cycle has reached a trough, and respond typically.
All else remaining constant, which of the following occurs?

AD rises

AD falls

AS rises

AS falls

3 points   Save Answer

Question 30

Renewable resources are harvested at a rate that exceeds their maximum sustainable yield. In the short run, this will make things bountiful and cheaper, but in the long-run which of the following occurs?

AD rises

AD falls

AS rises

AS falls

3 points   Save Answer

Question 31

United States labor productivity rises, thereby boosting aggregate supply.

All else remaining constant, what will be the long-run impact on the price level and GDP output?

inflation & economic growth

inflation & no growth

inflation & recession

deflation & recession

deflation & economic growth

3 points   Save Answer

Question 32

Businesses respond to widespread negative unplanned inventory investment when there exists some cyclical unemployment, or idle resources.  This results in a jump in business investment spending and higher aggregate demand.

All else remaining constant, what will be the long-run impact on the price level and GDP output?

inflation & economic growth

inflation & no growth

inflation & recession

deflation & recession

deflation & growth

3 points   Save Answer

Question 33

Unionization adds to the cost of hiring labor, thereby decreasing aggregate supply.

All else remaining constant, what will be the long-run impact on the price level and GDP output?

inflation & economic growth

inflation & no growth

inflation & recession

deflation & recession

deflation & economic growth

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