Econ Test Practise

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1.  Suppose consumption increases at each price level. As a result, aggregate demand __________, and the AD curve shifts __________.
A.
B.
C.
D.
2.  Look at the following data: personal income = $4,900 billion; personal taxes = $900 billion; transfer payments = $980 billion. What is disposable income?
A.
B.
C.
D.
E.
3.  In an economy with 100 million people, 70 million hold jobs and 19 million are not working but are looking for jobs. The unemployment rate is
A.
B.
C.
D.
E.
4. 
Durable goods $2,000
Services   4,000
Business purchases of capital goods     200
Fixed investment    600
Exports     600
Imports     800
Nondurable goods     500
Inventory investment                300
Government transfer payments     400
Purchases of new residential housing     400
Government purchases     900
  111.   Refer to Exhibit 7-3.  Net exports is equal to
A.
B.
C.
D.
E.
5.  An increase in labor's productivity will cause the SRAS curve to shift __________ and the price level to __________.
A.
B.
C.
D.
6.  An appreciation of the U.S. dollar tends to __________ U.S. net exports and shift the U.S. AD curve to the __________.
A.
B.
C.
D.
7.  The civilian non-institutional population can be broken down into two groups:
A.
B.
C.
D.
8.  The unemployment rate equals the
A.
B.
C.
D.
9.  If the natural unemployment rate is 5 percent and the current unemployment rate is 6 percent, then the economy is
A.
B.
C.
D.
E.
10.  In 2009, the U.S. GDP was approximately
A.
B.
C.
D.
11.  Suppose that C = $700, I = $200, G = $200, NX = $100, and that the money supply is equal to $400.  Based upon these assumptions, velocity is equal to ________________.  If consumption and velocity both rise beyond their initial levels, then it follows that another component of spending ___________ necessarily fall.
A.
B.
C.
D.
12.  Which of the following illustrates double counting?
A.
B.
C.
D.
E.
13.  John just bought shares of stock in IBM for $10,000 and paid a $90 commission to his broker. How did this affect GDP?
A.
B.
C.
D.
14.  As the interest rate rises, businesses invest __________ and the AD curve shifts to the __________.
A.
B.
C.
D.
15.  You have data for compensation of employees, proprietors' income, rental income, and net interest. Can you compute national income?
A.
B.
C.
D.
E.
16.  Suppose consumption decreases at each price level. As a result, aggregate demand __________, and the AD curve shifts __________.
A.
B.
C.
D.
17.  As interest rates rise, the  ____________ curve shifts _____________ resulting in a(n) 
A.
B.
C.
D.
18.  Suppose the price level is rising and it is widely forecast to rise even further. This forecast might cause __________ of some consumption plans, resulting in __________ the AD curve.
A.
B.
C.
D.
19.  Exhibit 7-1   
Consumption expenditures $ 2,150
Federal government purchases of goods and services 250
State and local government’s purchases 331
Investment 692
Proprietors income 150
Compensation of employees 2,080
Corporate profits 134
Corporate profits taxes 23
Rental income 31
Capital consumption allowance 295
Indirect business taxes 146
Net interest 147
Exports 300
Imports 320
Undistributed corporate profits 111
Transfer payments 66
Personal taxes 45
Dividends                        0
Income Earned from the Rest of the World                     252
Income Earned by the Rest of the World                     667
Social Insurance taxes 222
Statistical discrepancy 5
 Refer to Exhibit 7-1. What is the value of  gross domestic product?
A.
B.
C.
D.
E.
20.  The short-run aggregate supply curve is
A.
B.
C.
D.
21.  An economic policy initiative results in the AD curve shifting to the right. As a result,
A.
B.
C.
D.
E.
22.  If a person is waiting to be called back to a job from which she has been laid off, how is she classified?
A.
B.
C.
D.
23.  Expectation of lower future prices is a
A.
B.
C.
D.
24.  Suppose there are 200 million people in the population, 120 million people in the civilian labor force, and 90 million people are employed.  The number of people unemployed is _______ million and the unemployment rate is ___________ percent.
A.
B.
C.
D.
25. 
Given Change in Economic Factor Real GDP Price Level
Increase in foreign real national income (1) (2)
Decrease in wage rates (3) (4)
Beneficial supply shock (5) (6)
Decrease in government purchases (7) (8)
Increase in personal income taxes (8) (10)
Decrease in labor productivity (11) (12)
Refer to Exhibit 8-2.  Based on the given change, what word (rises or falls) should go in blank (7) and blank (8), respectively, to summarize the resulting impact on short run equilibrium?
A.
B.
C.
D.
26.  As the price level rises, ceteris paribus, people holding some of their wealth in monetary form become
A.
B.
C.
D.
27.  Suppose a drop in stock prices makes people feel less wealthy. This would cause __________ the economy's AD curve.
A.
B.
C.
D.
28.  Personal income is
A.
B.
C.
D.
E.
29. 
Consumption expenditures $ 2,150
Federal government purchases of goods and services 250
State and local government’s purchases 331
Investment 692
Proprietors income 150
Compensation of employees 2,080
Corporate profits 134
Corporate profits taxes 23
Rental income 31
Capital consumption allowance 295
Indirect business taxes 146
Net interest 147
Exports 300
Imports 320
Undistributed corporate profits 111
Transfer payments 66
Personal taxes 45
Dividends                        0
Income Earned from the Rest of the World                     252
Income Earned by the Rest of the World                     667
Social Insurance taxes 222
Statistical discrepancy 5
Refer to Exhibit 7-1. Which of the following summations represents personal income?
A.
B.
C.
D.
30.  Exhibit 7-1   
Consumption expenditures $ 2,150
Federal government purchases of goods and services 250
State and local government’s purchases 331
Investment 692
Proprietors income 150
Compensation of employees 2,080
Corporate profits 134
Corporate profits taxes 23
Rental income 31
Capital consumption allowance 295
Indirect business taxes 146
Net interest 147
Exports 300
Imports 320
Undistributed corporate profits 111
Transfer payments 66
Personal taxes 45
Dividends                        0
Income Earned from the Rest of the World                     252
Income Earned by the Rest of the World                     667
Social Insurance taxes 222
Statistical discrepancy 5
Refer to Exhibit 7-1. Which of the following summations represents GDP using the expenditure approach?
A.
B.
C.
D.
31. 
Consumption expenditures $ 2,150
Federal government purchases of goods and services 250
State and local government’s purchases 331
Investment 692
Proprietors income 150
Compensation of employees 2,080
Corporate profits 134
Corporate profits taxes 23
Rental income 31
Capital consumption allowance 295
Indirect business taxes 146
Net interest 147
Exports 300
Imports 320
Undistributed corporate profits 111
Transfer payments 66
Personal taxes 45
Dividends                        0
Income Earned from the Rest of the World                     252
Income Earned by the Rest of the World                     667
Social Insurance taxes 222
Statistical discrepancy 5
Refer to Exhibit 7-1. What is the value of  disposable income?
A.
B.
C.
D.
E.
32.  Which of the following is counted in GDP?
A.
B.
C.
D.
E.
33.  The sum of durable goods, nondurable goods, and services equals
A.
B.
C.
D.
E.
34.  An increase in the interest rate __________ purchases of consumer __________.
A.
B.
C.
D.
35.  The interest rate effect is one of the
A.
B.
C.
D.
36.  Real GDP is always measured in
A.
B.
C.
D.
E.
37.  An increase in the price level
A.
B.
C.
D.
E.
38.  An aggregate demand (AD) curve shows the
A.
B.
C.
D.
39. 
Durable goods $2,000
Services   4,000
Business purchases of capital goods     200
Fixed investment    600
Exports     600
Imports     800
Nondurable goods     500
Inventory investment                300
Government transfer payments     400
Purchases of new residential housing     400
Government purchases     900
Refer to Exhibit 7-3.  GDP is equal to
A.
B.
C.
D.
E.
40.  Suppose there are five goods in the economy, A-E. The current-year quantity of each is 10A, 20B, 30C, 40D, and 50E. Current-year prices are $1 for each unit of A, $2 for each unit of B, $3 for each unit of C, $4 for each unit of D, and $5 for each unit of E. Base-year prices are $1 for each good. Real GDP in the current year equals _________ and GDP equals _________.
A.
B.
C.
D.
E.
41.  Increases in import spending
A.
B.
C.
D.
42.  If investment changes because of a change in a factor other than the price level, then the
A.
B.
C.
D.
43.  An increase in labor productivity shifts the
A.
B.
C.
D.
E.
44.  "Economic growth" has occurred if the
A.
B.
C.
D.
45.  If the price level is constant, but consumption increases, then the real balance effect will
A.
B.
C.
D.
46.  An increase in the price of oil will cause
A.
B.
C.
D.
E.
47.  A short-run aggregate supply curve shows the
A.
B.
C.
D.
48.  If the economy is in a recessionary gap,
A.
B.
C.
D.
E.
49.  Persons who are retired or engaged in own-home housework are considered to be in which of the following categories?
A.
B.
C.
D.
50.  What does annual economic growth refer to?
A.
B.
C.
D.
E.
51.  If aggregate quantity supplied is greater than aggregate quantity demanded at a particular price level, then a
A.
B.
C.
D.
E.
52.  A depreciation of the U.S. dollar tends to __________ U.S. net exports and shift the U.S. AD curve to the __________.
A.
B.
C.
D.
53.  The real balance effect helps to create "a change in
A.
B.
C.
D.
54.  Exhibit 7-1   
Consumption expenditures $ 2,150
Federal government purchases of goods and services 250
State and local government’s purchases 331
Investment 692
Proprietors income 150
Compensation of employees 2,080
Corporate profits 134
Corporate profits taxes 23
Rental income 31
Capital consumption allowance 295
Indirect business taxes 146
Net interest 147
Exports 300
Imports 320
Undistributed corporate profits 111
Transfer payments 66
Personal taxes 45
Dividends                        0
Income Earned from the Rest of the World                     252
Income Earned by the Rest of the World                     667
Social Insurance taxes 222
Statistical discrepancy 5
Refer to Exhibit 7-1. Which of the following summations represents net domestic product?
A.
B.
C.
D.
E.
55.  Suppose the economy's short-run equilibrium point is to the left of the Natural Real GDP. Which of the following is true?
A.
B.
C.
D.
56. 
Durable goods $2,000
Services   4,000
Business purchases of capital goods     200
Fixed investment    600
Exports     600
Imports     800
Nondurable goods     500
Inventory investment                300
Government transfer payments     400
Purchases of new residential housing     400
Government purchases     900
Refer to Exhibit 7-3.  Consumption is equal to
A.
B.
C.
D.
E.
57.  Changes in which of the following will not cause the SRAS curve to shift?
A.
B.
C.
D.
E.
58.  As the price level falls,
A.
B.
C.
D.
E.
59.  If the CPI is 170 and nominal income is $45,000, approximately what does real income equal?
A.
B.
C.
D.
60.  Persons who are retired or engaged in own-home housework are considered to be in which of the following categories?
A.
B.
C.
D.
61. 
Consumption expenditures $ 2,150
Federal government purchases of goods and services 250
State and local government’s purchases 331
Investment 692
Proprietors income 150
Compensation of employees 2,080
Corporate profits 134
Corporate profits taxes 23
Rental income 31
Capital consumption allowance 295
Indirect business taxes 146
Net interest 147
Exports 300
Imports 320
Undistributed corporate profits 111
Transfer payments 66
Personal taxes 45
Dividends                        0
Income Earned from the Rest of the World                     252
Income Earned by the Rest of the World                     667
Social Insurance taxes 222
Statistical discrepancy 5
Refer to Exhibit 7-1. Which of the following summations represents disposable income?
A.
B.
C.
D.
62.  Smith's income was $50,000 in year 1 and $55,600 in year 2. The CPI was 114 in year 1 and 124 in year 2. What was the approximate percentage change in Smith's real income between the two years?
A.
B.
C.
D.
E.
63.  If the SRAS curve intersects the AD curve to the left of Natural Real GDP, the economy is
A.
B.
C.
D.
64.  In order to be classified as unemployed, a person must
A.
B.
C.
D.
65.  Which of the following would not be included in the calculation of this year's GDP?
A.
B.
C.
D.
66.  A person in the civilian labor force falls into one of two categories:
A.
B.
C.
D.
67.  If there are 10 job losers, 12 job leavers, 13 reentrants, and 12 new entrants, then there are __________ unemployed persons.
A.
B.
C.
D.
E.
68. 
Given Change in Economic Factor Real GDP Price Level
Increase in foreign real national income (1) (2)
Decrease in wage rates (3) (4)
Beneficial supply shock (5) (6)
Decrease in government purchases (7) (8)
Increase in personal income taxes (8) (10)
Decrease in labor productivity (11) (12)
Refer to Exhibit 8-2.  Based on the given change, what word (rises or falls) should go in blank (5) and blank (6), respectively, to summarize the resulting impact on short run equilibrium?
A.
B.
C.
D.
69.  Disposable income is
A.
B.
C.
D.
E.
70.  According to Say's law, there can be
A.
B.
C.
D.
71.  Look at the following data: GDP = $7,920 billion; investment = $2,100 billion; exports = $300 billion; government purchases = $1,450 billion; consumption = $4,500 billion. What does import spending equal?
A.
B.
C.
D.
E.
72.  If Real GDP is less than Natural Real GDP, the economy is in
A.
B.
C.
D.
73.  The real balance effect describes the change in
A.
B.
C.
D.
E.
74.  According to Say's law,
A.
B.
C.
D.
E.
75.  In order to be classified as unemployed, a person must
A.
B.
C.
D.
76.  The standard definition of "recession" is
A.
B.
C.
D.
77.  What is the proper sequence of the phases of a business cycle?
A.
B.
C.
D.
E.
78.  Expectation of higher future income is a
A.
B.
C.
D.
79.  If consumption changes because of a change in the price level, then the
A.
B.
C.
D.
E.
80.  Which of the following is not consistent with a self-regulating economy?
A.
B.
C.
D.
E.
81.  Juan lost his job as a nuclear physicist working for a defense contractor.  He can not find a job because no firms in the defense industry or any other industry are hiring people with his skills.  Juan is ______________ unemployed.
A.
B.
C.
D.
82.  If a person did at least one hour of work as a paid employee during the survey week, how is she classified?
A.
B.
C.
D.
83.  Unemployment that arises as a result of the time it takes for unemployed people to locate a job utilizing their transferable skills is called __________ unemployment.
A.
B.
C.
D.
84.  As the price level falls, ceteris paribus, people holding some of their wealth in monetary form become
A.
B.
C.
D.
85.  As the interest rate rises, the cost of a given investment project __________ and businesses invest __________.
A.
B.
C.
D.
86.  Aggregate demand curves are
A.
B.
C.
D.
87. 
Consumption expenditures $ 2,150
Federal government purchases of goods and services 250
State and local government’s purchases 331
Investment 692
Proprietors income 150
Compensation of employees 2,080
Corporate profits 134
Corporate profits taxes 23
Rental income 31
Capital consumption allowance 295
Indirect business taxes 146
Net interest 147
Exports 300
Imports 320
Undistributed corporate profits 111
Transfer payments 66
Personal taxes 45
Dividends                        0
Income Earned from the Rest of the World                     252
Income Earned by the Rest of the World                     667
Social Insurance taxes 222
Statistical discrepancy 5
Refer to Exhibit 7-1. What is the value of  personal income?
A.
B.
C.
D.
E.
88.  The cyclical unemployment rate is defined as the __________ unemployment rates.
A.
B.
C.
D.
89.  An increase in the money supply may __________ total expenditures, leading to a __________ shift of the AD curve.
A.
B.
C.
D.
90.  Say's law says
A.
B.
C.
D.
E.
91.  A plumber who quits his job in San Diego and moves to Orlando where additional plumbers are needed is said to be ___________________ unemployed
A.
B.
C.
D.
92.  Suppose the market basket consists of 10X, 20Y, and 30Z. Current-year prices are $1.20 for each unit of X, $0.96 for each unit of Y, and $1.30 for each unit of Z. Base-year prices are $1.00 for each unit of X, Y, and Z. What is the approximate CPI in the current year?
A.
B.
C.
D.
93.  Suppose the real exchange rate of 10 Mexican pesos to the dollar moves to 9 pesos to the dollar. The dollar has ________________, making Mexican goods __________ expensive for Americans.
A.
B.
C.
D.
94.  A decrease in the price level
A.
B.
C.
D.
E.
95. 
Consumption expenditures $ 2,150
Federal government purchases of goods and services 250
State and local government’s purchases 331
Investment 692
Proprietors income 150
Compensation of employees 2,080
Corporate profits 134
Corporate profits taxes 23
Rental income 31
Capital consumption allowance 295
Indirect business taxes 146
Net interest 147
Exports 300
Imports 320
Undistributed corporate profits 111
Transfer payments 66
Personal taxes 45
Dividends                        0
Income Earned from the Rest of the World                     252
Income Earned by the Rest of the World                     667
Social Insurance taxes 222
Statistical discrepancy 5
Refer to Exhibit 7-1. What is the value of  net domestic product?
A.
B.
C.
D.
E.
96. 
Given Change in Economic Factor Real GDP Price Level
Increase in foreign real national income (1) (2)
Decrease in wage rates (3) (4)
Beneficial supply shock (5) (6)
Decrease in government purchases (7) (8)
Increase in personal income taxes (8) (10)
Decrease in labor productivity (11) (12)
Refer to Exhibit 8-2.  Based on the given change, what word (rises or falls) should go in blank (1) and blank (2), respectively, to summarize the resulting impact on short run equilibrium?
A.
B.
C.
D.
97.  Which of the following is a nonmarket good?
A.
B.
C.
D.
E.
98.  Suppose the civilian non-institutional population equals 100,000; the civilian labor force equals 75,000; there are 70,000 employed persons and 5,000 unemployed persons. If 5,000 persons who are currently "not in the labor force" decide to join the civilian labor force, and 3,000 are unemployed, then
A.
B.
C.
D.
99.  An increase in the price of nonlabor inputs
A.
B.
C.
D.
E.
100.  Which of the following factors can shift the AD curve?
A.
B.
C.
D.
E.
101.  In the definition of GDP, the words "total market value" refer to total
A.
B.
C.
D.
102. 
Durable goods $2,000
Services   4,000
Business purchases of capital goods     200
Fixed investment    600
Exports     600
Imports     800
Nondurable goods     500
Inventory investment                300
Government transfer payments     400
Purchases of new residential housing     400
Government purchases     900
Refer to Exhibit 7-3.  Investment is equal to
A.
B.
C.
D.
E.
103.  The unemployment due to changes in the types of skills employers require is called __________ unemployment.
A.
B.
C.
D.
104.  If consumption changes because of a change in a factor other than the price level, then the
A.
B.
C.
D.
E.
105.  A recession is always part of a
A.
B.
C.
D.
106. 
Given Change in Economic Factor Real GDP Price Level
Increase in foreign real national income (1) (2)
Decrease in wage rates (3) (4)
Beneficial supply shock (5) (6)
Decrease in government purchases (7) (8)
Increase in personal income taxes (8) (10)
Decrease in labor productivity (11) (12)
Refer to Exhibit 8-2.  Based on the given change, what word (rises or falls) should go in blank (3) and blank (4), respectively, to summarize the resulting impact on short run equilibrium?
A.
B.
C.
D.
107.  Which of the following statements is false?
A.
B.
C.
D.
108.  The best reason economists take only final goods and services into account when calculating GDP is that
A.
B.
C.
D.
109.  The real balance effect is one of the
A.
B.
C.
D.
110.  If Real GDP is greater than Natural Real GDP, the economy is in a(n)
A.
B.
C.
D.
111.  If the CPI is 100 in the base year and 150 in the current year, how much did prices rise between these two years?
A.
B.
C.
D.
112. 
Given Change in Economic Factor Real GDP Price Level
Increase in foreign real national income (1) (2)
Decrease in wage rates (3) (4)
Beneficial supply shock (5) (6)
Decrease in government purchases (7) (8)
Increase in personal income taxes (8) (10)
Decrease in labor productivity (11) (12)
Refer to Exhibit 8-2.  Based on the given change, what word (rises or falls) should go in blank (9) and blank (10), respectively, to summarize the resulting impact on short run equilibrium?
A.
B.
C.
D.
113.  Gross Domestic Product (GDP) is the total market value of all
A.
B.
C.
D.
114.  Which of the following does GDP omit?
A.
B.
C.
D.
E.
115.  According to the classical theorists, it is impossible to have
A.
B.
C.
D.
E.
116.  Which of the following would not be included in the measurement of GDP?
A.
B.
C.
D.
E.
117.  If in the process of calculating GDP, the market value of all intermediate goods is added to the market value of all final goods, this would
A.
B.
C.
D.
118.  In the United States, by far the largest expenditure component in GDP is
A.
B.
C.
D.
E.
119.  The employment rate equals the number of
A.
B.
C.
D.
E.
120.  Greater wealth makes __________ people willing to spend the national income, causing __________ the economy's AD curve.
A.
B.
C.
D.
121.  If investment changes because of a change in the price level, then the
A.
B.
C.
D.
E.
122.  A rise in wage rates
A.
B.
C.
D.
E.
123.  Which of the following would definitely not be included in the measurement of GDP?
A.
B.
C.
D.
124.  If Real GDP was $8,742 billion in year 2 and it had been $8,509 billion in year 1, what was the approximate economic growth rate during this time period?
A.
B.
C.
D.
125.  Velocity is the average number of times a dollar is spent to buy
A.
B.
C.
D.
126.  Short-run equilibrium exists
A.
B.
C.
D.
127.  Gross Domestic Product is computed by using
A.
B.
C.
D.
128. 
Given Change in Economic Factor Real GDP Price Level
Increase in foreign real national income (1) (2)
Decrease in wage rates (3) (4)
Beneficial supply shock (5) (6)
Decrease in government purchases (7) (8)
Increase in personal income taxes (8) (10)
Decrease in labor productivity (11) (12)
Refer to Exhibit 8-2.  Based on the given change, what word (rises or falls) should go in blank (11) and blank (12), respectively, to summarize the resulting impact on short run equilibrium?
A.
B.
C.
D.
129.  Suppose there are 50 million people in the population, 25 million people in the civilian labor force, and 20 million people are employed.  The number of people unemployed is _______ million and the unemployment rate is ___________ percent.
A.
B.
C.
D.
130.  A decrease in the money supply may __________ total expenditures and thus __________ aggregate demand.
A.
B.
C.
D.
131.  A decrease in the price of electricity will cause
A.
B.
C.
D.
E.
132.  Underground activities are not counted in GDP because
A.
B.
C.
D.
133.  A market basket is made up of three goods, 10X, 12Y, and 18Z. The prices in the base year are $1.20, $2.10, and $3.25, respectively. The prices in the current year are $1.44, $2.23, and $3.88. What is the approximate consumer price index in the current year?
A.
B.
C.
D.
E.
134.  The change in the purchasing power of dollar-denominated assets (such as cash holdings) is the
A.
B.
C.
D.
E.
135.  In an economy with 100 million people, 70 million hold jobs and 19 million are not working but are looking for jobs. The number counted as unemployed is
A.
B.
C.
D.
E.
136.  A falling interest rate affects the demand for consumer __________ and shifts AD to the __________.
A.
B.
C.
D.
137.  According to classical economists, the relationship between the amount of funds households plan to save and the interest rate is
A.
B.
C.
D.
138.  After an adverse supply shock occurs, the  ____________ curve shifts _____________ resulting in a(n) _________________ in the U.S. price level and a(n) ________________ in Real GDP.
A.
B.
C.
D.
139.   If the economy is self-regulating and in a recessionary gap,
A.
B.
C.
D.
E.
140.  "Full employment" is said to exist when the unemployment rate equals
A.
B.
C.
D.
141.  The CPI was 138 in one year and 146 the following year. Approximately how much did prices rise between the two years?
A.
B.
C.
D.
142.  One of the reasons why the AD curve slopes downward is that as the
A.
B.
C.
D.
E.
143.  If some of a person's wealth is in cash, it follows that
A.
B.
C.
D.
E.
144.  An inflationary gap exists when AD and SRAS
A.
B.
C.
D.
145.  Which of the following is the correct equation for computing personal income?
A.
B.
C.
D.
146.  If consumption increases,
A.
B.
C.
D.
147.  Part of the story of the interest rate effect is that a lower price level causes __________ in the supply of credit, which then causes the interest rate to __________.
A.
B.
C.
D.
148.  If the price level remains constant but the wage rate increases, then there will be __________ in production and the SRAS curve will shift __________.
A.
B.
C.
D.
149.  If the economy is self-regulating and in an inflationary gap,
A.
B.
C.
D.
E.
150.  One measure of the inflation rate is the
A.
B.
C.
D.
151.  Which of the following items is a final good?
A.
B.
C.
D.
E.
152.  Suppose the real exchange rate of 115 Japanese yen to the dollar moves to 105 yen to the dollar. The dollar has __________, making Japanese goods __________ expensive for Americans.
A.
B.
C.
D.
153.  The natural rate of unemployment exists at
A.
B.
C.
D.
E.
154.  When the economy is at its full employment Real GDP, the unemployment rate is equal to
A.
B.
C.
D.
155. 
Consumption expenditures $ 2,150
Federal government purchases of goods and services 250
State and local government’s purchases 331
Investment 692
Proprietors income 150
Compensation of employees 2,080
Corporate profits 134
Corporate profits taxes 23
Rental income 31
Capital consumption allowance 295
Indirect business taxes 146
Net interest 147
Exports 300
Imports 320
Undistributed corporate profits 111
Transfer payments 66
Personal taxes 45
Dividends                        0
Income Earned from the Rest of the World                     252
Income Earned by the Rest of the World                     667
Social Insurance taxes 222
Statistical discrepancy 5
Refer to Exhibit 7-1. What is the value of  national income?
A.
B.
C.
D.
E.
156.  The civilian non-institutional population consists of everyone in the population who is
A.
B.
C.
D.
E.
157.  A lower income tax rate __________ consumption, causing a __________ the AD curve.
A.
B.
C.
D.
158.  According to classical economists, the relationship between the amount of funds firms plan to invest and the interest rate is
A.
B.
C.
D.
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