Bonus Quiz For Econtwo K37, T1, Ay2010-2011

In the prices of a base year

In current pesos

At a constant output level at base year prices

As the difference between current year GDP and the previous year’s GDP

Prices in 2000 are lower than prices in 2009

2009 nominal GDP = 2000 nominal GDP

Prices in 2009 are higher than prices in 2000

2009 real GDP > 2000 real GDP

7.27%

4.55%

8%

18%

True

False

It depends

3.1%

10.6%

1.6%

632%

75%

25%

10%

90%

The labor force less the number of employed

The labor force plus the number of employed

The number of employed minus the labor force

The number of unemployed divided by the labor force

It is simply an aggregation of individual market demand curves

Higher overall price levels increase overall spending

Higher overall price levels increase demand for money, raising interest rates and negatively affecting aggregate spending

None of the above

It is simply an aggregation of individual market supply curves

Higher overall price levels increase overall spending

Firms maximize profit by producing more at higher price levels

Costs, particularly wages, do not adjust immediately to increases in the overall price level

An increase in both output and overall price level

An increase in output but no increase in the overall price level

An increase in the overall price level but no increase in output

No increase in either output or the overall price level

Vertical

Upward sloping

Horizontal

Downward sloping

Vertical

Upward sloping

Horizontal

Downward sloping

In the money market, and has no influence in the goods market

In the money market, and influences investment and thus the goods market

In the goods market, and has no influence in the money market

In the goods market, and influences investment and thus the money market

Changes in inflation

Changes in interest rate

Changes in taxes and government spending

Changes in money supply

Fiscal and monetary policies are ineffective

Managing aggregate supply is key to economic stability

The government has a role to play in fighting unemployment

The economy is stable and self-correcting

Wages and prices are fully flexible in the economy, both in the short and long run

Aggregate income and output in an economy is determined by the amount of labor, capital, and the level of technology

Aggregate demand does not affect output, which is completely supply-oriented

Managing aggregate demand is essential to economic stability

Aggregate expenditure is greater than aggregate output

Actual and intended firm spending can be different

The sum of saving and taxes matches total firm and government spending

All of the above

Can be offset by a matching reduction in private investment

Always increases aggregate income and output by its total amount

Results in the same change in equilibrium income and output as a reduction in taxes

All of the above

True

False

It depends

True

False

It depends

Firms have positive inventory

There is downward pressure on aggregate output

Planned investment exceeds actual investment

All of the above

None of the above

Firms have positive inventory

There is downward pressure on aggregate output

Planned investment exceeds actual investment

All of the above

None of the above

Leads to an increase in equilibrium output by the amount of the additional investment

Sets off successive rounds of spending, with increases in income resulting in more consumption and investment

Results in successive rounds of progressively more saving and hence less consumption

Any of the above

The cost of transaction is too low

It requires a double coincidence of wants

It requires high liquidity

Banks are required as intermediaries (middle men)

Consumption good

Unit of account

Means of exchange

Store of value