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AGEC 217 QUIZZES|31 QUESTIONS AND ANSWERS
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AGEC 217 QUIZZES|31 QUESTIONS AND ANSWERS
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AGEC 217 QUIZZES|31 QUESTIONSAND ANSWERS
Reporters are fond of the phrase, "Consumers are more than two-thirds of
the economy." They mean that - -household consumption spending is more
than two-thirds of total gross domestic product.
- Gross Domestic Product accountants measure the contribution of
government to GDP by - -adding up the value of inputs that governments
buy.
- The percentage change in a price index from 2014 to 2015 is - -the
inflation rate for 2015.
- Cyclical unemployment occurs when - -the economy falls into recession,
workers are laid off or let go, and people entering the labor force have
difficulty finding jobs.
- Over the economy falls into recession, workers are laid off or let go, and
people entering the labor force have difficulty finding jobs. - -tends to rise
during or after recessions, and fall during expansions.
- How does nominal GDP differ from real GDP? - -Nominal GDP is measured
in current prices, meaning the prices from the year the GDP is measured,
while real GDP is measured in constant prices, meaning the prices from a
"base year
- If nominal GDP declines from one year to the next - -either the price level
has decreased, or output has decreased, or both
- An annual inflation rate of 4.5% would mean - -the average of the prices in
the market basket are 4.5% higher this year than last year
- If the corporate less-risky AAA bond interest rate is 2%, and the corporate
more-risky BAA bond interest rate is 4%, the interest rate spread is - -2%
- Suppose you earn $100,000 in 2020. Between 2020 and 2021 a price index
increases from 100 to 105. To maintain the purchasing power of your salary,
how much must you be paid in 2021? (Type your answer as a 6-digit number.
Do not use a "$" sign.) - -105,000
- Here are some consumer price indexes from the past 100+ years:
Year CPI
, 1909 9.1
1919 17.3
1929 17.1
1939 13.9
1949 23.8
1959 29.1
1969 36.7
1979 72.6
1989 118.3
1999 166.6
2009 214.5
2015 238.5
What was the inflation rate between 1969 and 1979? (Type the answer as a
percent, that is, 50 not 0.5. - -97.9
Take the second year's CPI, subtract the first year's CPI, and divide by the
first year's CPI. Then multiply the result by 100. If you get a positive number,
there was inflation between the two years. On average, the prices of
consumer goods went up. A negative number means deflation between
those years. On average, the prices of consumer goods went down.
- Here are some consumer price indexes from the past 100+ years:
Year CPI
1909 9.1
1919 17.3
1929 17.1
1939 13.9
1949 23.8
1959 29.1
1969 36.7
1979 72.6
1989 118.3
1999 166.6
2009 214.5
2015 238.5
The admission price was $1.00 in 1909. How much would the Speedway
have had to charge in 1989 to match the purchasing power of $1 in 1909? In
other words, how much was that in 1989? - -13.04
- Here are prices of gasoline per gallon and the Consumer Price Index for
some of the years since 1960.
Year Gas Price CPI
1960 0.31 29.6
1965 0.31 31.5
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