Econ Test Practise

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1.  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.
2.  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.
3.  When the economy is at its full employment Real GDP, the unemployment rate is equal to
A.
B.
C.
D.
4.  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.
5.  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.
6.  The civilian non-institutional population can be broken down into two groups:
A.
B.
C.
D.
7.  Disposable income is
A.
B.
C.
D.
E.
8.  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.
9.  An increase in the price of oil will cause
A.
B.
C.
D.
E.
10.  An aggregate demand (AD) curve shows the
A.
B.
C.
D.
11.  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.
12.  The real balance effect is one of the
A.
B.
C.
D.
13.  In the definition of GDP, the words "total market value" refer to total
A.
B.
C.
D.
14.  The unemployment rate equals the
A.
B.
C.
D.
15.  A person in the civilian labor force falls into one of two categories:
A.
B.
C.
D.
16.  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.
17.  As the interest rate rises, businesses invest __________ and the AD curve shifts to the __________.
A.
B.
C.
D.
18.  According to Say's law, there can be
A.
B.
C.
D.
19.  Which of the following is the correct equation for computing personal income?
A.
B.
C.
D.
20.  A short-run aggregate supply curve shows the
A.
B.
C.
D.
21.  "Full employment" is said to exist when the unemployment rate equals
A.
B.
C.
D.
22.  A decrease in the price level
A.
B.
C.
D.
E.
23.  As the price level falls,
A.
B.
C.
D.
E.
24.  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.
25.  Gross Domestic Product is computed by using
A.
B.
C.
D.
26.  According to Say's law,
A.
B.
C.
D.
E.
27.  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.
28.  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.
29.  Which of the following is counted in GDP?
A.
B.
C.
D.
E.
30.  If the price level is constant, but consumption increases, then the real balance effect will
A.
B.
C.
D.
31.  Which of the following does GDP omit?
A.
B.
C.
D.
E.
32.  Which of the following items is a final good?
A.
B.
C.
D.
E.
33.  Increases in import spending
A.
B.
C.
D.
34.  If Real GDP is greater than Natural Real GDP, the economy is in a(n)
A.
B.
C.
D.
35.  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.
36.  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.
37.  As the price level rises, ceteris paribus, people holding some of their wealth in monetary form become
A.
B.
C.
D.
38.  Persons who are retired or engaged in own-home housework are considered to be in which of the following categories?
A.
B.
C.
D.
39.  If consumption changes because of a change in a factor other than the price level, then the
A.
B.
C.
D.
E.
40.  The sum of durable goods, nondurable goods, and services equals
A.
B.
C.
D.
E.
41.  According to the classical theorists, it is impossible to have
A.
B.
C.
D.
E.
42.  Which of the following would not be included in the measurement of GDP?
A.
B.
C.
D.
E.
43.   If the economy is self-regulating and in a recessionary gap,
A.
B.
C.
D.
E.
44.  Suppose consumption increases at each price level. As a result, aggregate demand __________, and the AD curve shifts __________.
A.
B.
C.
D.
45.  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.
46.  Changes in which of the following will not cause the SRAS curve to shift?
A.
B.
C.
D.
E.
47.  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.
48.  Which of the following is not consistent with a self-regulating economy?
A.
B.
C.
D.
E.
49.  In order to be classified as unemployed, a person must
A.
B.
C.
D.
50.  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.
51.  The cyclical unemployment rate is defined as the __________ unemployment rates.
A.
B.
C.
D.
52.  In 2009, the U.S. GDP was approximately
A.
B.
C.
D.
53.  According to classical economists, the relationship between the amount of funds households plan to save and the interest rate is
A.
B.
C.
D.
54.  Personal income is
A.
B.
C.
D.
E.
55.  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.
56.  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.
57.  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.
58.  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.
59.  As the interest rate rises, the cost of a given investment project __________ and businesses invest __________.
A.
B.
C.
D.
60.  Greater wealth makes __________ people willing to spend the national income, causing __________ the economy's AD curve.
A.
B.
C.
D.
61.  Expectation of higher future income is a
A.
B.
C.
D.
62.  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.
63.  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.
64.  What is the proper sequence of the phases of a business cycle?
A.
B.
C.
D.
E.
65.  The change in the purchasing power of dollar-denominated assets (such as cash holdings) is the
A.
B.
C.
D.
E.
66.  A decrease in the money supply may __________ total expenditures and thus __________ aggregate demand.
A.
B.
C.
D.
67.  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.
68.  An economic policy initiative results in the AD curve shifting to the right. As a result,
A.
B.
C.
D.
E.
69.  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.
70.  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.
71.  Which of the following is a nonmarket good?
A.
B.
C.
D.
E.
72.  Suppose consumption decreases at each price level. As a result, aggregate demand __________, and the AD curve shifts __________.
A.
B.
C.
D.
73.  In the United States, by far the largest expenditure component in GDP is
A.
B.
C.
D.
E.
74.  If the economy is in a recessionary gap,
A.
B.
C.
D.
E.
75.  If the economy is self-regulating and in an inflationary gap,
A.
B.
C.
D.
E.
76.  Suppose a drop in stock prices makes people feel less wealthy. This would cause __________ the economy's AD curve.
A.
B.
C.
D.
77.  The short-run aggregate supply curve is
A.
B.
C.
D.
78.  An increase in the interest rate __________ purchases of consumer __________.
A.
B.
C.
D.
79.  An increase in labor productivity shifts the
A.
B.
C.
D.
E.
80.  Persons who are retired or engaged in own-home housework are considered to be in which of the following categories?
A.
B.
C.
D.
81.  Expectation of lower future prices is a
A.
B.
C.
D.
82.  The natural rate of unemployment exists at
A.
B.
C.
D.
E.
83.  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.
84.  If Real GDP is less than Natural Real GDP, the economy is in
A.
B.
C.
D.
85.  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.
86.  The real balance effect describes the change in
A.
B.
C.
D.
E.
87.  Short-run equilibrium exists
A.
B.
C.
D.
88.  Underground activities are not counted in GDP because
A.
B.
C.
D.
89.  A falling interest rate affects the demand for consumer __________ and shifts AD to the __________.
A.
B.
C.
D.
90.  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.
91.  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.
92.  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.
93.  If the SRAS curve intersects the AD curve to the left of Natural Real GDP, the economy is
A.
B.
C.
D.
94.  Which of the following factors can shift the AD curve?
A.
B.
C.
D.
E.
95.  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.
96.  You have data for compensation of employees, proprietors' income, rental income, and net interest. Can you compute national income?
A.
B.
C.
D.
E.
97.  One of the reasons why the AD curve slopes downward is that as the
A.
B.
C.
D.
E.
98.  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.
99.  If aggregate quantity supplied is greater than aggregate quantity demanded at a particular price level, then a
A.
B.
C.
D.
E.
100.  A lower income tax rate __________ consumption, causing a __________ the AD curve.
A.
B.
C.
D.
101.  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.
102.  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.
103.  Which of the following illustrates double counting?
A.
B.
C.
D.
E.
104.  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.
105.  If some of a person's wealth is in cash, it follows that
A.
B.
C.
D.
E.
106.  As the price level falls, ceteris paribus, people holding some of their wealth in monetary form become
A.
B.
C.
D.
107.  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.
108.  Gross Domestic Product (GDP) is the total market value of all
A.
B.
C.
D.
109.  An increase in the price of nonlabor inputs
A.
B.
C.
D.
E.
110.  An increase in the money supply may __________ total expenditures, leading to a __________ shift of the AD curve.
A.
B.
C.
D.
111.  The interest rate effect is one of the
A.
B.
C.
D.
112.  What does annual economic growth refer to?
A.
B.
C.
D.
E.
113.  Which of the following statements is false?
A.
B.
C.
D.
114.  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.
115.  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.
116.  The civilian non-institutional population consists of everyone in the population who is
A.
B.
C.
D.
E.
117.  If the CPI is 170 and nominal income is $45,000, approximately what does real income equal?
A.
B.
C.
D.
118.  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.
119.  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.
120.  If investment changes because of a change in a factor other than the price level, then the
A.
B.
C.
D.
121.  Say's law says
A.
B.
C.
D.
E.
122.  "Economic growth" has occurred if the
A.
B.
C.
D.
123.  Aggregate demand curves are
A.
B.
C.
D.
124.  One measure of the inflation rate is the
A.
B.
C.
D.
125.  Which of the following would definitely not be included in the measurement of GDP?
A.
B.
C.
D.
126.  As interest rates rise, the  ____________ curve shifts _____________ resulting in a(n) 
A.
B.
C.
D.
127.  The employment rate equals the number of
A.
B.
C.
D.
E.
128.  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.
129.  The unemployment due to changes in the types of skills employers require is called __________ unemployment.
A.
B.
C.
D.
130.  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.
131.  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.
132.  The best reason economists take only final goods and services into account when calculating GDP is that
A.
B.
C.
D.
133.  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.
134.  According to classical economists, the relationship between the amount of funds firms plan to invest and the interest rate is
A.
B.
C.
D.
135.  A decrease in the price of electricity will cause
A.
B.
C.
D.
E.
136.  If consumption changes because of a change in the price level, then the
A.
B.
C.
D.
E.
137.  The standard definition of "recession" is
A.
B.
C.
D.
138.  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.
139.  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.
140.  An inflationary gap exists when AD and SRAS
A.
B.
C.
D.
141.  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.
142.  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.
143.  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.
144.  Velocity is the average number of times a dollar is spent to buy
A.
B.
C.
D.
145.  If consumption increases,
A.
B.
C.
D.
146.  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.
147.  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.
148.  A rise in wage rates
A.
B.
C.
D.
E.
149.  In order to be classified as unemployed, a person must
A.
B.
C.
D.
150.  A recession is always part of a
A.
B.
C.
D.
151.  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.
152.  An increase in labor's productivity will cause the SRAS curve to shift __________ and the price level to __________.
A.
B.
C.
D.
153.  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.
154.  Real GDP is always measured in
A.
B.
C.
D.
E.
155.  The real balance effect helps to create "a change in
A.
B.
C.
D.
156.  Which of the following would not be included in the calculation of this year's GDP?
A.
B.
C.
D.
157.  An increase in the price level
A.
B.
C.
D.
E.
158.  If investment changes because of a change in the price level, then the
A.
B.
C.
D.
E.
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