Econ 104 Bill Goffe, PSU Final Exam Prep Newest
Actual Exam With Complete Questions And
Correct Detailed Answers (Verified Answers)
|Already Graded A+\The Pennsylvania State
University
U.S. GDP per capita 2016
$55,800
Money $$$$$$$$$
An asset that does each of the following:
1.) Medium exchange used for purchases
2.) A store of value
3.) Unit of accounting
4.) Standard of deferred payment
M1
Cash and checkable deposits
,M2
M1+ Savings Accounts
Interest Rate
rate at which money is borrowed and lended
FED's Dual Mandate
To promote effectively the goals of 1)maximum employment, 2)stable prices, and
moderate long-term interest rates
Monetary Policy
Changes in the interest rates,M1, and M2 to achieve dual mandate goals
Fiscal Policy
Changes in federal taxes and expenditures. Controlled by President and
Congress
If federal taxes fall, all else equal, GDP will _____________ and Government
spending will _________________.
GDP will rise
G will not change
, GDP Deflator
A way to measure prices. The GDP Def measures the avg prices in the economy
through a comparison to the base year where the value is 100.
Inflation
a rise in prices
Deflation
a fall in prices
Over a year, if nominal salaries increased 4% and CPI increased 1%, then real
salaries would increase how much?
3%. Nominal salaries don't include inflation, so 4% (nom) - 1% (Inflation) = 3%
(Real salary)
Labor Force
total number of people who have jobs plus the number of people who do not
ave jobs, but are actively looking for one.
Unemployment Rate
Percentage of labor force that is unemployed
Actual Exam With Complete Questions And
Correct Detailed Answers (Verified Answers)
|Already Graded A+\The Pennsylvania State
University
U.S. GDP per capita 2016
$55,800
Money $$$$$$$$$
An asset that does each of the following:
1.) Medium exchange used for purchases
2.) A store of value
3.) Unit of accounting
4.) Standard of deferred payment
M1
Cash and checkable deposits
,M2
M1+ Savings Accounts
Interest Rate
rate at which money is borrowed and lended
FED's Dual Mandate
To promote effectively the goals of 1)maximum employment, 2)stable prices, and
moderate long-term interest rates
Monetary Policy
Changes in the interest rates,M1, and M2 to achieve dual mandate goals
Fiscal Policy
Changes in federal taxes and expenditures. Controlled by President and
Congress
If federal taxes fall, all else equal, GDP will _____________ and Government
spending will _________________.
GDP will rise
G will not change
, GDP Deflator
A way to measure prices. The GDP Def measures the avg prices in the economy
through a comparison to the base year where the value is 100.
Inflation
a rise in prices
Deflation
a fall in prices
Over a year, if nominal salaries increased 4% and CPI increased 1%, then real
salaries would increase how much?
3%. Nominal salaries don't include inflation, so 4% (nom) - 1% (Inflation) = 3%
(Real salary)
Labor Force
total number of people who have jobs plus the number of people who do not
ave jobs, but are actively looking for one.
Unemployment Rate
Percentage of labor force that is unemployed
