Question 1

During recessions, the unemployment rate ________ and output ________.

Accepted Answer

During recessions, the unemployment rate typically rises because businesses are laying off workers due to decreased demand for their products and services. At the same time, output falls because there is less production and economic activity.

Question 2

The difference between microeconomics and macroeconomics is that

Accepted Answer

Microeconomics focuses on the actions of individuals and industries, like the dynamics between buyers and sellers, borrowers and lenders. Macroeconomics, on the other hand, examines the economy as a whole, including total national output and income, the unemployment rate, and the overall price level, including inflation.

Question 3

Macroeconomic information for the economy of Anchovy is given below:
?  
a. What was the growth rate of average labour productivity in Anchovy between 2000 and 2001?
b. What was the inflation rate in Anchovy between 2000 and 2001?
c. What was the unemployment rate in 2000? In 2001?

Accepted Answer

a. Average labour productivity: 2000: 8000/700 = 80/7; 2001: 9000/800 = 90/8;growth rate = [(90/8)/(80/7)] - 1 = -.016 = -1.6%
b. Inflation rate: (9/8) - 1 = .125 = 12.5%
c. Unemployment rates: 2000: 70/770 = .091 = 9.1%; 2001: 100/900 = .111 = 11.1%

Question 4

The country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon:
 
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Between 2000 and 2001, nominal GDP grew by

Accepted Answer

The answer of The country of Old Jersey produces milk...

Question 5

The country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon:

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Between 2000 and 2001, the percent change in the price level as measured by a variable-weight price index was

Accepted Answer

The answer of The country of Old Jersey produces milk...

Question 6

Use the following information to answer this question about the country of Polity:

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Using a fixed-weight price index with 1998 as the base year, what is the percent change in real output from 2000 to 2001?

Accepted Answer

The percent change in real output is calculated using the fixed-weight price index, which adjusts nominal output to reflect changes in price levels. Given the options, 10% is the correct percent change from 2000 to 2001.

Question 7

The country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon:

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Between 2000 and 2001, real GDP grew by how much, using a variable-weight price index?

Accepted Answer

Real GDP grew by 60.05% between 2000 and 2001, using a variable-weight price index.

Question 8

Say nominal GDP was $603.9 billion in 2001 and $572.3 billion in 2000, while the GDP deflator Was 121.1 in 2001 and 117.7 in 2000. What was the growth rate of real GDP between 2000 and2001?

Accepted Answer

The growth rate of real GDP is calculated by adjusting nominal GDP for inflation using the GDP deflator. Real GDP for 2000 is $572.3 billion / 1.177 = $486.3 billion, and for 2001 is $603.9 billion / 1.211 = $498.7 billion. The growth rate is (($498.7 - $486.3) / $486.3) * 100% = 2.6%.

Question 9

The country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon:

Between 2001 and 2002, the percent change in the price level as measured by a fixed-weight index That uses production in 2001 as the fixed "basket"
Of goods was

Accepted Answer

The answer of The country of Old Jersey produces milk...

Question 10

You are given information on the consumer price index (CPI), where the values given are those for December 31 of each year.

In which year was the inflation rate the highest?

Accepted Answer

The answer of You are given information on the consumer...

Question 11

The country of Myrule has produced the following quantity of gauges and potatoes, with the price of each listed in dollar terms:
‪  
a. Using 2001 as the base year, what are the price indexes for 2001 and 2002?
b. What is the inflation rate using this index?
c. What is the percent change in real output using this index?

Accepted Answer

The answer of The country of Myrule has produced the...

Question 12

For 2002, the Kwakian economy had the following nominal quantities (in billions of dollars) and price indexes(1997 = 100) for each category of expenditure:
?  
a. Calculate the real quantity for each category (to one decimal point).
b. Calculate nominal and real GDP.
c. Find the implicit price deflator (1997 = 100)

Accepted Answer

The answer of For 2002, the Kwakian economy had the...

Quiz 1: The Science of Psychology Introduction: The Science of Psychology and Foundations of Behaviour

During recessions, the unemployment rate and output .

The difference between microeconomics and macroeconomics is that

Macroeconomic information for the economy of Anchovy is given below: ? a. What was the growth rate of average labour productivity in Anchovy between 2000 and 2001? b. What was the inflation rate in Anchovy between 2000 and 2001? c. What was the unemployment rate in 2000? In 2001?

The country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon: - Between 2000 and 2001, nominal GDP grew by

The country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon: - Between 2000 and 2001, the percent change in the price level as measured by a variable-weight price index was

Use the following information to answer this question about the country of Polity: - Using a fixed-weight price index with 1998 as the base year, what is the percent change in real output from 2000 to 2001?

The country of Old Jersey produces milk and butter, and it has published the following macroeconomic data, where quantities are in gallons and prices are dollars per gallon: - Between 2000 and 2001, real GDP grew by how much, using a variable-weight price index?

Say nominal GDP was $603.9 billion in 2001 and $572.3 billion in 2000, while the GDP deflator Was 121.1 in 2001 and 117.7 in 2000. What was the growth rate of real GDP between 2000 and2001?

You are given information on the consumer price index (CPI) , where the values given are those for December 31 of each year. In which year was the inflation rate the highest?