1) If the consumer price index (CPI) was 237 last year and is now 243, then the
ID: 1158032 • Letter: 1
Question
1) If the consumer price index (CPI) was 237 last year and is now 243, then the inflation rate was approximately:
2) In a small economy, the rate of money growth for the current year is 6%. The velocity of money in circulation is stable. Inflation is expected to be about 2% over the current year. What is the short-run economic growth rate?
3) Why should a country expect to have a higher growth rate after a war?
I. Since much of the capital would have been destroyed during the war, any new capital would contribute greatly to growth.
II. Capital accumulation always causes higher growth rates.
III. After a war, a country would be growing from a lower base level of capital and its growth rate would be higher.
4) Member nations of the Organization for Economic Cooperation and Development (OECD) with a lower GDP per capita in 1960 experienced what sort of growth during the subsequent 40 years?
5) In the long run, real GDP growth can continue because:
6) Sticky wages and prices are incorporated into the New Keynesian model by the:
7) To fight a recession, the Federal Reserve can:
I. increase spending.
II. cut taxes.
III. buy bonds.
8) The monetary base consists of currency:
9) The goal of an open market purchase by the Federal Reserve is to:
10) Which of the following would you classify as being least liquid?
11) Fiscal policy refers to changes in:
12) In the New Keynesian model, a fiscal policy that could "offset" a drop in consumer or producer confidence is:
I. an increase in the money supply.
II. an increase in tax rates.
III. an increase in government spending.
1.89%.Explanation / Answer
1) If the consumer price index (CPI) was 237 last year and is now 243, then the inflation rate was approximately:
Ans D 2.53%
Inflation = [ (CPIn-CPIo) / CPIo ] X 100
Inflation = [ (243-237) / 237 ] X 100
Inflation = [ 6/237] X 100
Inflation = 2.53% Ans
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.