Filters
Question type
Study Flashcards

If the nominal interest rate is 8.3% and the inflation rate is 4.4%,what is the real interest rate?

Correct Answer

verifed

verified

The real i...

View Answer

Suppose that the price of one gallon of milk was $0.25 in 1950,that the CPI in 1950 was 25,and that in 2000 the CPI was 200.What is the price of a 1950 gallon of milk in 2000 dollars?

Correct Answer

verifed

verified

The price of a 1950 ...

View Answer

What do real interest rates account for that nominal interest rates do not?

Correct Answer

verifed

verified

Unlike nominal interest rates,...

View Answer

Suppose the typical basket for the calculation of the CPI includes one computer.Since computers have gotten better over time as a result of technological change,what problem does this create for calculating the CPI?

Correct Answer

verifed

verified

The improvement in t...

View Answer

Suppose that the price of one ear of corn was $0.05 in 1920,that the CPI in 1920 was 10,and that in 1990 the CPI was 180.What is the price of a 1920 ear of corn in 1990 dollars?

Correct Answer

verifed

verified

The price of a 1920 ...

View Answer

If the real interest rate is 6.8% and the inflation rate is 3.9%,what is the nominal interest rate?

Correct Answer

verifed

verified

The nomina...

View Answer

In a simple economy,people consume only 2 goods,food and clothing.The market basket of goods used to compute the CPI consists of 50 units of food and 10 units of clothing. In a simple economy,people consume only 2 goods,food and clothing.The market basket of goods used to compute the CPI consists of 50 units of food and 10 units of clothing. a.What are the percentage increases in the price of food and in the price of clothing? b.What is the percentage increase in the CPI? c.Do these price changes affect all consumers to the same extent? Explain. a.What are the percentage increases in the price of food and in the price of clothing? b.What is the percentage increase in the CPI? c.Do these price changes affect all consumers to the same extent? Explain.

Correct Answer

verifed

verified

a. The price of food increased by 50 per...

View Answer

Suppose that the CPI in 2009 is 220 and that the inflation rate is 5% in 2010.What is the CPI in 2010?

Correct Answer

verifed

verified

The CPI in...

View Answer

List the five steps for calculating the consumer price index and inflation rate.

Correct Answer

verifed

verified

(1) Survey consumers to determine a fixe...

View Answer

Suppose Stan Musial earned $115,000 in 1947.If the CPI was 82 in 1947,and was 246 in 1990,what is Stan Musial's 1947 salary in 1990 dollars?

Correct Answer

verifed

verified

Stan Musial’s 1947 s...

View Answer

Suppose the nominal interest rate this year is 6.5% and that the economy experiences 2.3% deflation.What is the real interest rate?

Correct Answer

verifed

verified

The real i...

View Answer

Suppose that the CPI in 1990 was 150,that the inflation rate in 1991 was 6%,and that the inflation rate in 1992 was 4%.What was the CPI in 1991 and 1992?

Correct Answer

verifed

verified

The CPI in 1991 was ...

View Answer

Explain how the prices of goods and services used in the CPI differ from the prices reflected by GDP deflator.

Correct Answer

verifed

verified

The CPI focuses on goods and services bo...

View Answer

Consumer spending in what category is the largest component of the CPI?

Correct Answer

verifed

verified

Suppose the Tooth Fairy paid 50 cents for a tooth in 1970.The CPI in 1970 was 38.8,while the CPI in 2010 was 218.1.What is the value of the Tooth Fairy's payment in 2010 dollars?

Correct Answer

verifed

verified

For a country like the United States,explain why the CPI would increase at a faster rate than the GDP deflator during periods of oil and gasoline price increases.

Correct Answer

verifed

verified

The U.S. i...

View Answer

Scenario 24-5 Suppose the residents of Mediaville spend all of their income on books,CDs,and DVDs.In 2009,they buy 400 books for $3,200,200 CDs for $1,400,and 100 DVDs for $900.In 2010,they buy 360 books for $3,240,250 CDs for $1,500,and 125 DVDs for $1,250.Assume that the market basket for the CPI is defined in the base year. -Refer to Scenario 24-5.What are the prices of books,CDs,and DVDs in 2010?

Correct Answer

verifed

verified

In 2009, books are $...

View Answer

In 1954,Mickey Mantle earned $21,000 playing for the New York Yankees.The CPI in 1954 was 26.9,and the CPI in 2010 was 218.06.What is Mickey Mantle's 1954 salary in 2010 dollars?

Correct Answer

verifed

verified

Mickey Mantle’s 1954...

View Answer

Scenario 24-5 Suppose the residents of Mediaville spend all of their income on books,CDs,and DVDs.In 2009,they buy 400 books for $3,200,200 CDs for $1,400,and 100 DVDs for $900.In 2010,they buy 360 books for $3,240,250 CDs for $1,500,and 125 DVDs for $1,250.Assume that the market basket for the CPI is defined in the base year. -Refer to Scenario 24-5.Using 2009 as the base year,what is the CPI in each year?

Correct Answer

verifed

verified

In 2009 the CPI is 1...

View Answer

Showing 21 - 39 of 39

Related Exams

Exam 1

Ten Principles of Economics

24 Questions

Exam 1

Ten Principles of Economics: How People Make Decisions

139 Questions

Exam 1

Ten Principles of Economics: How People Interact

103 Questions

Exam 1

Ten Principles of Economics: How the Economy As a Whole Works

73 Questions

Exam 1

Ten Principles of Economics: Part A

53 Questions

Exam 1

Ten Principles of Economics: Part B

51 Questions

Exam 2

Thinking Like an Economist

2 Questions

Exam 2

Thinking Like an Economist: The Economist As Scientist

256 Questions

Exam 2

Thinking Like an Economist: The Economist As Policy Adviser

67 Questions

Exam 2

Thinking Like an Economist: Why Economists Disagree

17 Questions

Exam 2

Thinking Like an Economist: Lets Get Going

6 Questions

Exam 2

Thinking Like an Economist: Graphing a Brief Review

68 Questions

Exam 2

Thinking Like an Economist: Part A

56 Questions

Exam 2

Thinking Like an Economist: Part B

136 Questions

Exam 3

Interdependence and the Gains From Trade

2 Questions

Exam 3

Interdependence and the Gains From Trade: A Parable for the Modern Economy

60 Questions

Exam 3

Interdependence and the Gains From Trade: Comparative Advantage the Driving Force of Specialization

141 Questions

Exam 3

Interdependence and the Gains From Trade: Applications of Comparative Advantage

20 Questions

Exam 3

Interdependence and the Gains From Trade: Conclusion

1 Questions

Exam 3

Interdependence and the Gains From Trade: Part A

40 Questions

Exam 3

Interdependence and the Gains From Trade: Part B

69 Questions

Exam 4

The Market Forces of Supply and Demand

3 Questions

Exam 4

The Market Forces of Supply and Demand:Markets and Competition

46 Questions

Exam 4

The Market Forces of Supply and Demand: Demand

150 Questions

Exam 4

The Market Forces of Supply and Demand: Supply

96 Questions

Exam 4

The Market Forces of Supply and Demand: Supply and Demand Together

158 Questions

Exam 4

The Market Forces of Supply and DemandConclusion How Prices Allocate Resources

5 Questions

Exam 4

The Market Forces of Supply and Demand: Part A

38 Questions

Exam 4

The Market Forces of Supply and Demand: Part B

108 Questions

Exam 5

Elasticity and Its Applications

6 Questions

Exam 5

Elasticity and Its Applications: The Elasticity of Demand

303 Questions

Exam 5

Elasticity and Its Applications: The Elasticity of Supply

86 Questions

Exam 5

Elasticity and Its Applications: Three Applications of Supply,demand,and Elasticity

48 Questions

Exam 5

Elasticity and Its Applications: Part A

49 Questions

Exam 5

Elasticity and Its Applications: Part B

78 Questions

Exam 6

Supply Demand and Government Policies

5 Questions

Exam 6

Supply Demand and Government Policies: Controls on Prices

215 Questions

Exam 6

Supply Demand and Government Policies: Taxes

199 Questions

Exam 6

Supply Demand and Government Policies: Part A

46 Questions

Exam 6

Supply Demand and Government Policies: Part B

166 Questions

Exam 7

Consumers Producers and the Efficiency of Markets

10 Questions

Exam 7

Consumers Producers and the Efficiency of Markets: Consumer Surplus

98 Questions

Exam 7

Consumers Producers and the Efficiency of Markets: Producer Surplus

92 Questions

Exam 7

Consumers Producers and the Efficiency of Markets: Market Efficiency

123 Questions

Exam 7

Consumers Producers and the Efficiency of Markets: Conclusion Market Efficiency and Market Failure

7 Questions

Exam 7

Consumers Producers and the Efficiency of Markets: Part A

46 Questions

Exam 7

Consumers Producers and the Efficiency of Markets: Part B

65 Questions

Exam 8

Application the Cost of Taxation

5 Questions

Exam 8

Application the Cost of Taxation: The Deadweight Loss of Taxation

247 Questions

Exam 8

Application the Cost of Taxation: The Determinants of the Deadweight Loss

61 Questions

Exam 8

Application the Cost of Taxation: Deadweight Loss and Tax Revenue As Taxes Vary

62 Questions

Exam 8

Application the Cost of Taxation: Conclusion

2 Questions

Exam 8

Application the Cost of Taxation: Part A

58 Questions

Exam 8

Application the Cost of Taxation: Part B

59 Questions

Exam 9

Application International Trade

2 Questions

Exam 9

Application International Trade: The Determinants of Trade

41 Questions

Exam 9

Application International Trade: The Winners and Losers From Trade

302 Questions

Exam 9

Application International Trade: The Arguments for Restricting Trade

40 Questions

Exam 9

Application International Trade: Conclusion

3 Questions

Exam 9

Application International Trade: Part A

53 Questions

Exam 9

Application International Trade: Part B

68 Questions

Exam 10

Measuring a Nations Income

6 Questions

Exam 10

Measuring a Nations Income: The Economy's Income and Expenditure

27 Questions

Exam 10

Measuring a Nations Income: The Measurement of GDP

117 Questions

Exam 10

Measuring a Nations Income: The Components of GDP

106 Questions

Exam 10

Measuring a Nations Income: Real Versus Nominal GDP

52 Questions

Exam 10

Measuring a Nations Income: Is GDP a Good Measure of Economic Well-Being

22 Questions

Exam 10

Measuring a Nations Income: Part A

44 Questions

Exam 10

Measuring a Nations Income: Part B

86 Questions

Exam 11

Measuring the Cost of Living

12 Questions

Exam 11

Measuring the Cost of Living: The Consumer Price Index

195 Questions

Exam 11

Measuring the Cost of Living: Correcting Economic Variables for the Effects of Inflation

124 Questions

Exam 11

Measuring the Cost of Living: Part B

83 Questions

Exam 12

Production and Growth

16 Questions

Exam 12

Production and Growth: Economic Growth Around the World

54 Questions

Exam 12

Production and Growth: Productivity Its Role and Determinants

159 Questions

Exam 12

Production and Growth: Economic Growth and Public Policy

157 Questions

Exam 12

Production and Growth: Conclusion the Importance of Long-Run Growth

2 Questions

Exam 12

Production and Growth: Part A

59 Questions

Exam 12

Production and Growth: Part B

62 Questions

Exam 13

Saving Investment and the Financial System

8 Questions

Exam 13

Saving Investment and the Financial System: Financial Institutions in the US economy

177 Questions

Exam 13

Saving Investment and the Financial System: Saving and Investment in the National Income Accounts

98 Questions

Exam 13

Saving Investment and the Financial System: The Market for Loanable Funds

201 Questions

Exam 13

Saving Investment and the Financial System: Part A

57 Questions

Exam 13

Saving Investment and the Financial System: Part B

63 Questions

Exam 14

The Basic Tools of Finance

2 Questions

Exam 14

The Basic Tools of Finance: Present Value Measuring the Time Value of Money

213 Questions

Exam 14

The Basic Tools of Finance: Managing Risk

120 Questions

Exam 14

The Basic Tools of Finance: Asset Valuation

70 Questions

Exam 14

The Basic Tools of Finance: Conclusion

2 Questions

Exam 14

The Basic Tools of Finance: Part A

59 Questions

Exam 14

The Basic Tools of Finance: Part B

54 Questions

Exam 15

Unemployment

15 Questions

Exam 15

Unemployment: Identifying Unemployment

163 Questions

Exam 15

Unemployment: Job Search

40 Questions

Exam 15

Unemployment: Minimum-Wage Laws

39 Questions

Exam 15

Unemployment: Unions and Collective Bargaining

49 Questions

Exam 15

Unemployment: The Theory of Efficiency Wages

41 Questions

Exam 15

Unemployment: Part A

48 Questions

Exam 15

Unemployment: Part B

221 Questions

Exam 16

The Monetary System

17 Questions

Exam 16

The Monetary System: The Meaning of Money

100 Questions

Exam 16

The Monetary System: The Federal Reserve System

52 Questions

Exam 16

The Monetary System: Banks and the Money Supply

78 Questions

Exam 16

The Monetary System: The Feds Tools of Monetary Control

126 Questions

Exam 16

The Monetary System: Part A

64 Questions

Exam 16

The Monetary System: Part B

57 Questions

Exam 17

Money Growth and Inflation

22 Questions

Exam 17

Money Growth and Inflation: The Classical Theory of Inflation

245 Questions

Exam 17

Money Growth and Inflation: The Costs of Inflation

94 Questions

Exam 17

Money Growth and Inflation: Conclusion

3 Questions

Exam 17

Money Growth and Inflation: Part A

63 Questions

Exam 17

Money Growth and Inflation: Part B

60 Questions

Exam 18

Open Economy Macroeconomics Basic Concepts

2 Questions

Exam 18

Open Economy Macroeconomics Basic Concepts: The International Flows of Goods and Capital

227 Questions

Exam 18

Open Economy Macroeconomics Basic Concepts: The Prices for International Transactions Real and Nominal Exchange Rates

76 Questions

Exam 18

Open Economy Macroeconomics Basic Concepts: A First Theory of Exchange-Rate Determination Purchasing-Power Parity

87 Questions

Exam 18

Open Economy Macroeconomics Basic Concepts: Part A

67 Questions

Exam 18

Open Economy Macroeconomics Basic Concepts: Part B

63 Questions

Exam 19

A Macroeconomic Theory of the Open Economy

3 Questions

Exam 19

A Macroeconomic Theory of the Open Economy: Supply and Demand for Loanable Funds and for Foreign-Currency Exchange

141 Questions

Exam 19

A Macroeconomic Theory of the Open Economy: Equilibrium in the Open Economy

45 Questions

Exam 19

A Macroeconomic Theory of the Open Economy: How Policies and Events Affect an Open Economy

172 Questions

Exam 19

A Macroeconomic Theory of the Open Economy: Part A

47 Questions

Exam 19

A Macroeconomic Theory of the Open Economy: Part B

56 Questions

Exam 20

Aggregate Demand and Aggregate Supply

6 Questions

Exam 20

Aggregate Demand and Aggregate Supply: Three Key Facts About Economic Fluctuations

33 Questions

Exam 20

Aggregate Demand and Aggregate Supply: Explaining Short-Run Economic Fluctuations

38 Questions

Exam 20

Aggregate Demand and Aggregate Supply: The Aggregate-Demand Curve

141 Questions

Exam 20

Aggregate Demand and Aggregate Supply: The Aggregate-Supply Curve

95 Questions

Exam 20

Aggregate Demand and Aggregate Supply: Two Causes of Economic Fluctuations

117 Questions

Exam 20

Aggregate Demand and Aggregate Supply: Part A

59 Questions

Exam 20

Aggregate Demand and Aggregate Supply: Part B

61 Questions

Exam 21

The Influences of Monetary and Fiscal Policy on Aggregate Demand

5 Questions

Exam 21

The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Monetary Policy Influences Aggregate Demand

198 Questions

Exam 21

The Influences of Monetary and Fiscal Policy on Aggregate Demand: How Fiscal Policy Influences Aggregate Demand

123 Questions

Exam 21

The Influences of Monetary and Fiscal Policy on Aggregate Demand: Using Policy to Stabilize the Economy

73 Questions

Exam 21

The Influences of Monetary and Fiscal Policy on Aggregate Demand: Part A

60 Questions

Exam 21

The Influences of Monetary and Fiscal Policy on Aggregate Demand: Part B

50 Questions

Exam 22

The Short Run Trade Off Between Inflation and Unemployment

11 Questions

Exam 22

The Short Run Trade Off Between Inflation and Unemployment: The Phillips Curve

86 Questions

Exam 22

The Short Run Trade Off Between Inflation and Unemployment: Shifts in the Phillips Curve the Role of Expectations

161 Questions

Exam 22

The Short Run Trade Off Between Inflation and Unemployment: Shifts in the Phillips Curve the Role of Supply Shocks

60 Questions

Exam 22

The Short Run Trade Off Between Inflation and Unemployment: The Cost of Reducing Inflation

87 Questions

Exam 22

The Short Run Trade Off Between Inflation and Unemployment: Part A

62 Questions

Exam 22

The Short Run Trade Off Between Inflation and Unemployment: Part B

52 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Should Monetary and Fiscal Policymakers Try to Stabilize the Economy

44 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Should the Government Fight Recessions With Spending Hikes Rather Than Tax Cuts

15 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Should Monetary Policy Be Made by Rule Rather Than by Discretion

37 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Should the Central Bank Aim for Zero Inflation

49 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Should the Government Balance Its Budget

38 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Should the Tax Laws Be Reformed to Encourage Saving

44 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Conclusion

1 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Part A

68 Questions

Exam 23

Six Debates Over Macroeconomic Policy: Part B

39 Questions

Exam 24

A-Financial-Overview-Of-The-US

104 Questions

Show Answer