1. Data on annual percentage changes in real GDP, consumption, and investment in
ID: 1131426 • Letter: 1
Question
1. Data on annual percentage changes in real GDP, consumption, and investment in the United States shows that fluctuations in investment _____. a. are noticeably smaller during expansions than during recessions b. are roughly similar to fluctuations in GDP c. are roughly similar to fluctuations in consumption d. are closely followed by economic forecasters because those fluctuations often signal that a recession will occur e. account for most of the variability in GDP
2. A recessionary gap is usually closed in the long run by a(n): a. rightward shift of the short-run aggregate supply curve. b. leftward shift of the short-run aggregate supply curve. c. rightward movement along a fixed short-run aggregate supply curve. d. decrease in aggregate demand. e. leftward movement along a fixed short-run aggregate supply curve.
3. Which of these is most likely to reduce the potential output of an economy? a. A decrease in the cost of using computers b. A deterioration in the quality of the labor force c. An increase in the size of the labor force d. An increase in the price level e. A decrease in the price level
4. The real wage is equal to the: a. non-wage benefits received by workers. b. nominal wage net of taxes paid on wages. c. wage measured in terms of the quantity of goods and services it buys. d. product of the nominal wage and the price level. e. wage measured in terms of the dollar value of the goods and services it buys.
5. In 2009, actual output in the U.S. was 4.7 percent below the potential output. This implies that the: a. unemployment in the U.S. was below its natural rate. b. there was an excess demand in this economy. c. poverty level in the U.S. was below average. d. there was a recessionary gap in this economy.
6. Unemployment occurs when _____. a. people do not work because they are physically unable to work b. people prefer leisure over work c. people do not work because they are not happy with the work environment d. people are willing and are able to work, but cannot find jobs e. people are unwilling to work at the prevailing market wage rate.
7. Developing countries need to trade with developed countries because: a. developing countries export capital to developed countries and increase their foreign exchange reserve. b. developing countries need technology and capital to increase productivity on farms, in factories, office, and in homes. c. developing countries lack unskilled labor which they get from developed countries. d. developing countries need the primary products that the developed countries export. e. developing countries need to adopt the advanced ways of living of the developed countries.
8. Developing countries consist of: a. both low-income and middle-income countries. b. only middle-income countries. c. both industrial and middle-income countries. d. only low-income countries. e. all industrial countries.
9. Some recipient governments sold the food they received from the U.S. Food for Peace program to _____. a. finance the import of industrial finished products b. finance their import of software services c. finance poorly conceived projects d. finance their defense expenses e. earn more foreign exchange
10. Labor productivity depends on: a. the proportion of the labor force that is unionized. b. the risks taken by an entrepreneur. c. the effectiveness of government. d. the size of the economy. e. the amount of natural resources.
11. In the 1950s, the United States began the Food for Peace program that resulted in _____. a. the sale of U.S. farm products abroad b. the sale of U.S. industrial products abroad c. a rise in contribution by the agricultural sector to the gross domestic product of the U.S. d. the sale of farm products from Africa in the U.S. e. the sale of U.S. software services in foreign countries
Explanation / Answer
Can answer only four questions according to chegg policy. Please send other parts as separate question
2 leftward shift of short run aggregate supply curve
3 A deterioration in quality of labour force
4 wage measured in terms of quantity of goods and services it buys
5 There was a recessionary gap in the economy
6 D
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