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Q14 Since 1960, the U.S. economy (and the global economy) has become more open m

ID: 2440691 • Letter: Q

Question

Q14

Since 1960, the U.S. economy (and the global economy) has become

more open

more closed

less trade-oriented

more self-sufficient

Q15

All of the following are aggregate price measures mentioned in this course, EXCEPT

CPI

GDP Deflator

PCE

Case-Shiller Index

Q16

In recessionary periods, the investment component of GDP

falls by a larger percentage than GDP.

falls by a smaller percentage of GDP.

falls by about the same percentage as GDP.

falls, but the percentage change is sometimes much larger and sometimes much smaller than the change in GDP.

a.

more open

b.

more closed

c.

less trade-oriented

d.

more self-sufficient

Explanation / Answer

Q 14

Since 1960, the US economy and the global economy has become more open.

It is so because since 1960, the dependence on import has been risen and this leads to open up the economy. So the correct ans is a) more open.

Q15

Except Case - Schiller index all other measures the aggregate price level.

It is so because the CPI, GDp deflator and PCE ( personal consumption expenditure ) all these are the measures of aggregate price level. But Case-Shiller index is an index that measures the change in the value of the U.S. residential housing market. The Case-Shiller National Home Price Index tracks the growth in value of real estate by following the purchase price and resale value of homes that have undergone a minimum of two arm's-length transactions.

It means all of the following are aggregate price measures mentioned in this course, EXCEPT Case- Shiller index.

Correct option is d).

Q16.

In recessionary periods, the investment component of GDP falls by a larger percentage than GDP.

So the correct ans is a) falls by a larger percentage than GDp.