Aggregate demand/supply
The determinants of LRAS are the same determinants of SRAS
a) True
b) False
a) True
What are the components of GDP?
C, I, G, NX
Draw a Business Cycle and label the expansion, peak, trough and recession.
What is GDP?
Market value of all final goods and services produced within a country during a time period, typically a year.
Which of the following is not a reason why the AD curve is downward sloping?
a) wealth effect
b) inflation effect
c) interest rate effect
d) international trade effect
b) inflation effect
If Real GDP is $543200 and Nominal GDP is $875000. What is the GDP deflator?
a) 106.34
b) 62.08
c) 161.08
d) 89.51
c) 161.08
What is stagflation?
a) combination of inflation and recession.
b) combination of inflation and expansion.
c) combination of deflation and recession.
d) combination of deflation and expansion.
a) combination of inflation and recession.
What is the difference between Real GDP and Nominal GDP
a) Real is the actual GDP and Nominal its the GDP that we should have in optimal conditions
b) Real is evaluated in current year prices and Nominal is evaluated in base year prices
c) Real is evaluated in base year prices and Nominal is evaluated in current year prices
d) They are the same thing
c) Real is evaluated in base year prices and Nominal is evaluated in current year prices
a) increases
b) decreases
c) remains constant
a) increases
What happens when AE<GDP?
Businesses fall short and sell too few than expected to sell.
What is the difference between a static model and a dynamic model?
In a static model we assume that LRAS is constant while in a dynamic model LRAS shifts right overtime.
What is the sticky price theory?
prices of some goods and services also adjust sluggishly in response to economic conditions.
what happens with price level and GDP if there is an increase in expected price levels in a static model?
a) PL decreases, GDP decreases
b) PL decreases, GDP increases
c) PL increases, GDP decreases
d) PL increases, GDP increases
c) PL increases, GDP decreases
GDP in $540000, Consumption Spending is $300000, Government Spending is $150000, Taxes are $160000 and Transfer payments are $60000. What is the amount of private savings?
a) $200000
b) $110000
c) $50000
d) $140000
d) $140000
How many years it would take to double the rice if the growth rate is 6.77%
a) 8.43 years
b) 9.77 years
c) 10.34 years
d) 12.13 years
c) 10.34 years
What is the market of loanable funds?
The interaction of borrowers and lenders that determine the market interest rate and the quantity of loanable funds exchange.
Draw a graph that shows inflation and expansion.
What curve is causing this to happen?
Aggregate Demand
What is the main difference between GDP and GNP
GDP only calculates inside the US, while GNP also calculates production that takes place outside of the US done by US residents.
If something costed $9,630 in 1950, what will be its price today? (Given that the CPI in 1950 is 24.1 and the CPI in 2019 is 256.75)
a) $253,457.53
b) $102,593.46
c) $333,654.66
d) $234,785.65
b) $102,593.46
What is PPI?
An average on prices received by producers of goods and services at all stages of production process.