Peregrine Exam Day 7 Questions And
Answers With Verified Solutions Already
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price level - ANSWER✔✔ a measure of the average prices of goods and services in
the economy
Price levels are expressed in... - ANSWER✔✔ small ranges or as discrete values
such as dollar figures
Price levels are leading indicators in the economy; - ANSWER✔✔ rising prices,
indicate higher demand leading to inflation while declining prices indicate lower
demand or deflation
In the investment world.... - ANSWER✔✔ price level is referred to as support and
resistance, which help define entry and exit points
monetary policy - ANSWER✔✔ Government policy that attempts to manage the
economy by controlling the money supply and thus interest rates.
Aggregate Demand - ANSWER✔✔ the amount of goods and services in the
economy that will be purchased at all possible price levels
How is CPI used? - ANSWER✔✔ 1. as a target policy: to gauge our success in low
inflation
-to measure inflationary tendencies
2. to index payments
, 3. to translate from nominal to real values
Consumer transaction - ANSWER✔✔ A transaction in which an individual incurs
an obligation primarily for personal, family, or household purposes.
economic growth - ANSWER✔✔ the ability of the economy to increase the
production of goods and services
Increases in capital goods, labor force, technology, and human capital -
ANSWER✔✔ can all contribute to economic growth
Economic growth is commonly measured in terms of the increase in aggregated
market value of additional goods and services produced - ANSWER✔✔ using
estimates such as GDP
National Savings - ANSWER✔✔ the sum of private savings and the budget
balance, is the total amount of savings generated within the economy
National savings rate is GDP that is... - ANSWER✔✔ saved rather than spent in an
economy
It is calculated as the difference between a nation's income and consumption
divided by income - ANSWER✔✔ National savings rate
The_____ is an indicator of a nation's health as it show trends in savings, which
lead to investments - ANSWER✔✔ national savings rate
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