WorksheetsMacroeconomics Panda Express
Total questions: 18
Worksheet time: 18mins
If the nominal interest rate is 6% and the inflation rate is 9%, then the real interest rate is
-3%
3%
6.67%
15%
What is the average growth rate if the Economy's real GDP grew from 10 billion to 20 billion in a 10-year period?
3%
7%
20%
100%
Which of the following is an example of foreign portfolio investment?
the purchase of a U.S. Treasury bond by a German citizen
the purchase of a U.S. mutual fund by a U.S. citizen
the purchase of a U.S. stock by a U.S. citizen
the purchase of a Japanese factory by a Korean citizen
Which of the following would you expect to increase the equilibrium interest rate?
the government begins running a budget surplus
an increase in the percentage of income after net taxes that households save
an increase in the budget deficit
a decrease in the profitability of investment projects firms are considering
People who lost their jobs as hand-drawn animators because of the popularity of computer-generated 3D animation are examples of persons who are suffering
A) frictional unemployment
structural employment
cyclical unemployment
seasonal unemployment
Which of the following would encourage economic growth through increases in capital stock?
a decrease in the government deficit
an increase in the profitability of new investment due to technological change
an increase in household saving
all of the above
In a small European country, it is estimated that changing the level of capital from $8 million to $10 million will increase real GDP from $2 million to $3 million. What level of GDP would you expect the economy to be able to reach if spending on capital continued to rise to $12 million, assuming no technological change and no change in the hours of work?
GDP would increase further by exactly $4 million
GDP would increase further, but by less than $1 million
GDP would increase further by more than $1 million.
GDP would increase further by exactly $1 million.
Which of the following could cause nominal GDP to decrease next year, but real GDP to increase?
The price level rises and the quantity of final goods and services produced falls
The price level falls and the quantity of final goods and services produced falls
The price level rises and the quantity of final goods and services produced rises
The price level falls and the quantity of final goods and services produced rises.
Which of the following would not be included in the expenditure category called investment expenditures?
a purchase of shares of preferred stock
spending on new houses
the cars held in inventory on a local Ford dealer's lot
a purchase of a copy machine by FedEx Office
Caroline is an artist. She purchases canvases, paints, brushes, and accessories for $75. She sells one of her original paintings to an art gallery for $1,500, even though an art lover would pay $4,500 for that painting. How much market value does Caroline add?
$75
$1425
$1500
$4425
The value of what a U.S.-owned McDonald's produces in South Korea is included in the U.S. ________ and the South Korean ________.
GNP; GDP
GDP; GNP
GDP; GDP
GNP; GNP
Home Depot sells new and used doors to contractors who build new homes. Home Depot also sells new and used doors to homeowners. Which of the following would be counted in GDP?
the sale of a used door to a homeowner
the sale of a new door to TapKon construction for installation into a new home
the sale of a new door to homeowner
the sale of a used door to TapKon construction for installation into a new home
Suppose you withdraw $500 from your checking account deposit and bury it in a jar in your backyard. If the required reserve ratio is 10 percent, checking account deposits in the banking system as a whole could drop up to a maximum of
$0
$50
$500
$5000
A decrease in the discount rate ________ bank reserves and ________ the money supply if banks respond appropriately to the change in the rate.
increases; decreases
decreases; decreases
increases; increases
decreases; increases
In 2005, Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico which subsequently drove up natural gas, gasoline, and heating oil prices. Three years later, once the refining capacity was restored, these prices came back down. The restoration of refining capacity should
move the economy down along a stationary short-run aggregate supply curve
move the economy up along a stationary short-run aggregate supply curve
shift the short-run aggregate supply curve to the left
shift the short-run aggregate supply curve to the right
Which of the following functions of money would be violated if inflation were high?
unit of account
medium of exchange
store of value
certificate of gold
If stricter immigration laws are imposed and many foreign workers in the United States are forced to go back to their home countries
we will move up along the long-run aggregate supply curve
we will move down along the long-run aggregate supply curve
the long-run aggregate supply curve will shift to the right
the long-run aggregate supply curve will shift to the left
The purchase of $1 million of Treasury securities by the Federal Reserve, if there is no change in the quantity of currency, will cause reserves at banks to
increase by less than $1 million
decrease by less $1 than million
decrease by $1 million
increase by $1 million
