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WorksheetsEconomics 202305 (Macro)
Total questions: 18
Worksheet time: 15mins
Real GDP equals
(A)
the sum of all the current-year quantities times their base-year prices
(B)
GDP divided by the CPI
(C)
GDP divided by the chain-weighted price index times 100
(D)
GDP times the chain-weighted price index divided by 100
(E)
Both (A) and (C)
"Economic growth" has occurred if the
inflation rate between this year and last year is zero or less
GDP this year exceeds the Real GDP this year
unemployment rate this year is above the natural rate of unemployment
Real GDP this year exceeds the Real GDP of last year
You have data for compensation of employees, proprietors' income, rental income, and net interest. Can you compute the national income?
Yes.
No, since data on indirect business taxes are missing.
No, since data on corporate profits are missing.
No, since data on the capital consumption allowance is missing.
If Real GDP was $6,742 billion in year 2 and it had been $6,509 billion in year 1, what was the approximate economic growth rate during this time period?
1.99%
4.6%
3.58%
1.34%
What is the proper sequence of the phases of a business cycle?
peak, contraction, trough, expansion, recovery
peak, contraction, recovery, trough, expansion
peak, contraction, trough, recovery, expansion
contraction, peak, trough, recovery, expansion
recovery, trough, peak, expansion, contraction
In the business cycle, what is the difference between the recovery phase and the expansion phase?
The expansion phase occurs in the rising portion of the business cycle, while the recovery phase occurs in the falling portion of the business cycle.
The expansion phase occurs in the falling portion of the business cycle, while the recovery phase occurs in the rising portion of the business cycle.
The expansion phase is the period when Real GDP increases beyond the recovery phase.
The expansion phase must always preceed the recovery phase.
One measure of the inflation rate is the
sum of the CPIs of adjacent years.
percentage change in the CPI of adjacent years
percentage change in the Real GDP of adjacent years.
GDP minus the Real GDP in a year.
What are the types of inflation?
Demand-pull and cost-pull
Demand-pull and cost-push
Demand-push and cost-pull
Demand-push and cost-push
Discourage workers are not counted as unemployed because they are working.
True
False
What's the effect on equilibrium price level and real GDP of Malaysia when RM appreciates?
Both equilibrium price level and equilibrium real GDP drop
Both equilibrium price level and equilibrium real GDP increase
Equilibrium price level increases and equilibrium real GDP drops
Equilibrium price level drops and equilibrium real GDP increases
Suppose a drop in stock prices makes people feel less wealthy. This would cause _______ the economy's AD curve.
movement down along
movement up along
a rightward shift of
a leftward shift of
How does the government solve inflation problem?
increase both government spending and taxes
reduce both government spending and taxes
reduce government spending and increase taxes
increase government spending and reduce taxes
Excess reserves are the amount by which total reserves exceed required reserves.
True
False
How does the central bank solve recession problem?
expansionary fiscal policy
expansionary monetary policy
contractionary fiscal policy
contractionary monetary policy
Refer to the diagram. The economy is initially at point 1. Ideally, ___ monetary policy will move the economy to point ___ .
expansionary; 9
contractionary; 4
expansionary; 8
expansionary; 7
contractionary; 2
Which country has comparative advantage in producing the chair?
Malaysia
Thailand
Both Malaysia and Thailand
None of the above
Malaysia government keeps USD as its official reserves. How does this transaction to be recorded in Malaysia Balance of Payment account?
Debited
Credited
Under a flexible/floating exchange rate system, central bank will intervene in foreign exchange market to maintain the currency rate.
True
False
