T or F
_____ 1.GDP includes the sale of intermediate goods and excludes the sale of final goods.
_____ 2.The sale of stocks and bonds are excluded from GDP.
_____ 3.The productive services of a housewife are included in GDP.
_____ 4. The price level is the weighted average of the prices of selected 300 consumer goods and services in the economy.
_____ 5.Unemployment and inflation rates vary among different countries.
_____ 6.If the price level increases by 3% and your pay raise is 2%, your real income is lower.
_____ 7.The real balance effect deals with the change in the purchasing power of dollar-denominated assets that results from a change in the price level.
_____ 8.If the economy is operating at the natural unemployment rate, there is no unemployment.
_____ 9. Current US economy’s unemployment rate is at 7%.
_____ 10.An increase in interest rates will lower investment.
_____ 11. If a household become wealthier, the consumption schedule will shift upward.
_____ 12. If disposable income is $350B and the average propensity to consume is 0.8, personal saving is $70B.
_____ 13. An increase in business taxes will tend to shift the investment-demand curve rightward.
_____ 14. Exports are leakage from the circular flow of an economy.
_____ 15. The multiplier will be larger the steeper the slope of the consumption schedule.
_____ 16. Discretionary fiscal policy is independent of Congress and based on the progressivity of the tax system.
_____ 17. An increase in taxes would be an expansionary fiscal policy.
_____ 18. The greater the progressivity of the tax system, the less is the built-in stability of the economy.
_____ 19. A self-regulating economy is one that can remove itself from both inflationary and recessionary gaps.
_____ 20. The real budget deficit is greater than the nominal budget deficit if there is a negative inflation rate.
_____ 1.GDP includes the sale of intermediate goods and excludes the sale of final goods.
_____ 2.The sale of stocks and bonds are excluded from GDP.
_____ 3.The productive services of a housewife are included in GDP.
_____ 4. The price level is the weighted average of the prices of selected 300 consumer goods and services in the economy.
_____ 5.Unemployment and inflation rates vary among different countries.
_____ 6.If the price level increases by 3% and your pay raise is 2%, your real income is lower.
_____ 7.The real balance effect deals with the change in the purchasing power of dollar-denominated assets that results from a change in the price level.
_____ 8.If the economy is operating at the natural unemployment rate, there is no unemployment.
_____ 9. Current US economy’s unemployment rate is at 7%.
_____ 10.An increase in interest rates will lower investment.
_____ 11. If a household become wealthier, the consumption schedule will shift upward.
_____ 12. If disposable income is $350B and the average propensity to consume is 0.8, personal saving is $70B.
_____ 13. An increase in business taxes will tend to shift the investment-demand curve rightward.
_____ 14. Exports are leakage from the circular flow of an economy.
_____ 15. The multiplier will be larger the steeper the slope of the consumption schedule.
_____ 16. Discretionary fiscal policy is independent of Congress and based on the progressivity of the tax system.
_____ 17. An increase in taxes would be an expansionary fiscal policy.
_____ 18. The greater the progressivity of the tax system, the less is the built-in stability of the economy.
_____ 19. A self-regulating economy is one that can remove itself from both inflationary and recessionary gaps.
_____ 20. The real budget deficit is greater than the nominal budget deficit if there is a negative inflation rate.