Reference no: EM131138646
Please answer these questions!
1. As opposed to GDP, GNP is a measure of all
• goods and services produced in an economy.
• final goods and services produced in an economy.
• goods and services produced by a nation's citizens.
• final goods and services produced by a nation's citizens living abroad.
• final goods and services produced by a nation's citizens.
2. Assume the CPI increases from 50 to 75 and a person's nominal income increases from $20,000 to $25,000 over the same period. This person's real income has
• increased by 5%.
• increased by 10%.
• increased by 20%.
• remained the same.
• decreased by 16.67%.
3. Assume the CPI increases from 100 to 120 and a person's nominal income increases from $40,000 to $48,000 over the same period. This person's real income has
• increased by 5%.
• increased by 10%.
• increased by 20%.
• remained the same.
• decreased by 25%.
4. Which of the following is included in the natural rate of unemployment?
I. Seasonal unemployment
II. Frictional unemployment
III. Structural unemployment
IV. Cyclical unemployment
I and II only. II and III only. III and IV only. I and IV only. II and IV only.
5. Which of the following is true of the factor market?
I. Households are buyers.
II. Households are sellers.
III. Firms are buyers.
IV. Firms are sellers.
I only. II only. III only. I and IV only. II and III only.
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