Economics Paper
Attempt 1
Question 1
4 out of 4 points
Suppose that a farmer grows wheat and sells it to a baker for $1, the baker makes bread and sells it to a store for $2, and the store sells it to the customer for $3. This transaction increases GDP by Answer
Selected Answer: $3.
Question 2
4 out of 4 points
If production remains the same and all prices double, then real GDP Answer
Selected Answer: is constant and nominal GDP doubles.
Question 3
4 out of 4 points
If the GDP price deflator is 2.0 and nominal GDP is $10,000 billion, then real GDP is Answer
Selected Answer: $5,000 billion.
Question 4
4 out of 4 points
The consumer price index (CPI) Answer
Selected Answer: measures the price of a fixed basket of good and services that typical households purchase.
Question 5
4 out of 4 points
In the national income accounts, all of the following are classified as government purchases except: Answer
Selected Answer: payments made to Social Security recipients.
Question 6
4 out of 4 points
Your grandparents tell you that in 1960 they paid $0.35 for admission to a movie. The price index in 1960 was 30. The price index today is 171. What is the price your grandparents paid in today’s dollars? Answer
Selected Answer: $1.99
Question 7
4 out of 4 points
Which of the following is a type of open-market operation? Answer
Selected Answer: The Fed sells Treasury bills to the public.
Question 8
4 out of 4 points
Consider the following table
Year Inflation Rate Nominal Interest Rate
1 5% 10%
2 10% 5%
By how much has the real interest rate changed between year 1
Question 1
4 out of 4 points
Suppose that a farmer grows wheat and sells it to a baker for $1, the baker makes bread and sells it to a store for $2, and the store sells it to the customer for $3. This transaction increases GDP by Answer
Selected Answer: $3.
Question 2
4 out of 4 points
If production remains the same and all prices double, then real GDP Answer
Selected Answer: is constant and nominal GDP doubles.
Question 3
4 out of 4 points
If the GDP price deflator is 2.0 and nominal GDP is $10,000 billion, then real GDP is Answer
Selected Answer: $5,000 billion.
Question 4
4 out of 4 points
The consumer price index (CPI) Answer
Selected Answer: measures the price of a fixed basket of good and services that typical households purchase.
Question 5
4 out of 4 points
In the national income accounts, all of the following are classified as government purchases except: Answer
Selected Answer: payments made to Social Security recipients.
Question 6
4 out of 4 points
Your grandparents tell you that in 1960 they paid $0.35 for admission to a movie. The price index in 1960 was 30. The price index today is 171. What is the price your grandparents paid in today’s dollars? Answer
Selected Answer: $1.99
Question 7
4 out of 4 points
Which of the following is a type of open-market operation? Answer
Selected Answer: The Fed sells Treasury bills to the public.
Question 8
4 out of 4 points
Consider the following table
Year Inflation Rate Nominal Interest Rate
1 5% 10%
2 10% 5%
By how much has the real interest rate changed between year 1