ECON 2030 EXAM 3 QUESTIONS AND ANSWERS
d) The real interest rate is 13 percent and the expected inflation rate is 15 percent
highest real interest
nominal - inflation rate = real interest - CORRECT ANSWER✅✅In which of the following situations is it
most advantageous to be saving?
a) The real interest rate is 7 percent and the expected inflation rate is 6 percent
b)The real interest rate is 1 percent and the expected inflation rate is 2 percent
c)The real interest rate is 11 percent and the expected inflation rate is 9 percent
d) The real interest rate is 13 percent and the expected inflation rate is 15 percent
e) The real interest rate is 4 percent and the expected inflation rate is 4 percent
a) decreased - CORRECT ANSWER✅✅Total PPI June (+0.3) July (0.0)
Core PPI June (+0.1) July (+0.3)
In July 2018, food and energy prices in the United States _________ From their June 2018 levels
a) decreased
b) remain unchanged
c) increased
b) higher than - it increased by 1 - CORRECT ANSWER✅✅Total PPI June (+0.3) July (0.0)
Core PPI June (+0.1) July (+0.3)
The aggregate price level in June 2018, as measured by the Core CPI, was __________ it was in May
2018
a) lower than
b) higher than
c) same as
,C) lower than - CORRECT ANSWER✅✅Total PPI June (+0.3) July (0.0)
Core PPI June (+0.1) July (+0.3)
The inflation rate in July 2018, as measured by the percent change in the total PPI, was _____ it was in
June 2018
a) higher than
b) same as
c) lower than
b) false - CORRECT ANSWER✅✅True or False
Structural unemployment occurs because jobs differ in their location, skills required, and working
conditions
a) true
b) false
b) lenders - CORRECT ANSWER✅✅An unexpected decrease in inflation rates, everything else held
constant, will benefit
a) borrowers
b) lenders
b) the same as - CORRECT ANSWER✅✅The unemployment rate in the US in October 2018 was ______
it was in September 2018
a) less than
b) the same as
c) greater than
, b) surplus - CORRECT ANSWER✅✅Suppose a country's economy is experiencing a recession, this means
that there is a ______ in the labor market
a) shortage
b) surplus
B) Unit of Account - CORRECT ANSWER✅✅The Kapauku people of the mountains of New Guinea used
shells in a number of different economic activities. Among the uses of shells were the following:
payment in shells was made to buy tobacco and pork, shells were passed on to heirs as an inheritance,
and shells were paid to settle obligations in the political organization of the society. which of the
following functions of money is not being fulfilled in above examples?
a) Medium of Exchange
b) Unit of Account
c) Store of Value
d) Means if Unilateral Payment
d) Frictional - CORRECT ANSWER✅✅Which of the following types of unemployment is the least harmful
to the macroeconomic performance of a dynamic market economy?
a) Seasonal
b) Structural
c) Cyclical
d) Frictional
d) stock; flow - CORRECT ANSWER✅✅The M2 money supply is a ______ variable, Real GDP is a ______
variable
a) flow; stock
b) flow; flow
c) stock; stock
d) The real interest rate is 13 percent and the expected inflation rate is 15 percent
highest real interest
nominal - inflation rate = real interest - CORRECT ANSWER✅✅In which of the following situations is it
most advantageous to be saving?
a) The real interest rate is 7 percent and the expected inflation rate is 6 percent
b)The real interest rate is 1 percent and the expected inflation rate is 2 percent
c)The real interest rate is 11 percent and the expected inflation rate is 9 percent
d) The real interest rate is 13 percent and the expected inflation rate is 15 percent
e) The real interest rate is 4 percent and the expected inflation rate is 4 percent
a) decreased - CORRECT ANSWER✅✅Total PPI June (+0.3) July (0.0)
Core PPI June (+0.1) July (+0.3)
In July 2018, food and energy prices in the United States _________ From their June 2018 levels
a) decreased
b) remain unchanged
c) increased
b) higher than - it increased by 1 - CORRECT ANSWER✅✅Total PPI June (+0.3) July (0.0)
Core PPI June (+0.1) July (+0.3)
The aggregate price level in June 2018, as measured by the Core CPI, was __________ it was in May
2018
a) lower than
b) higher than
c) same as
,C) lower than - CORRECT ANSWER✅✅Total PPI June (+0.3) July (0.0)
Core PPI June (+0.1) July (+0.3)
The inflation rate in July 2018, as measured by the percent change in the total PPI, was _____ it was in
June 2018
a) higher than
b) same as
c) lower than
b) false - CORRECT ANSWER✅✅True or False
Structural unemployment occurs because jobs differ in their location, skills required, and working
conditions
a) true
b) false
b) lenders - CORRECT ANSWER✅✅An unexpected decrease in inflation rates, everything else held
constant, will benefit
a) borrowers
b) lenders
b) the same as - CORRECT ANSWER✅✅The unemployment rate in the US in October 2018 was ______
it was in September 2018
a) less than
b) the same as
c) greater than
, b) surplus - CORRECT ANSWER✅✅Suppose a country's economy is experiencing a recession, this means
that there is a ______ in the labor market
a) shortage
b) surplus
B) Unit of Account - CORRECT ANSWER✅✅The Kapauku people of the mountains of New Guinea used
shells in a number of different economic activities. Among the uses of shells were the following:
payment in shells was made to buy tobacco and pork, shells were passed on to heirs as an inheritance,
and shells were paid to settle obligations in the political organization of the society. which of the
following functions of money is not being fulfilled in above examples?
a) Medium of Exchange
b) Unit of Account
c) Store of Value
d) Means if Unilateral Payment
d) Frictional - CORRECT ANSWER✅✅Which of the following types of unemployment is the least harmful
to the macroeconomic performance of a dynamic market economy?
a) Seasonal
b) Structural
c) Cyclical
d) Frictional
d) stock; flow - CORRECT ANSWER✅✅The M2 money supply is a ______ variable, Real GDP is a ______
variable
a) flow; stock
b) flow; flow
c) stock; stock
