1. The nominal interest rate equals the
- inflation rate minus the real interest rate.
- real interest rate plus the inflation rate.
- real interest rate minus the inflation rate
- inflation rate times the real interest rate.
- real interest rate divided by the inflation rate.
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Other questions in this quiz
2. If total output is calculated by adding up the market value of goods and services produced, then more expensive items:
- are excluded from the calculations.
- receive the same weighting as cheaper items
- are double counted.
- receive a higher weighting than cheaper items.
- receive a smaller weighting than cheaper items.
3. In Macroland potential GDP equals €500 billion and real GDP equals €515 billion. Macroland has a(n) _________ gap equal to _____ percent of potential GDP.
- expansionary; -15
- recessionary; -3
- expansionary; -3
- expansionary; 3
- recessionary; 3
4. The unemployment rate equals the number of people:
- unemployed divided by the number employed
- unemployed plus discouraged workers divided by the number employed.
- unemployed divided by the labour force.
- unemployed plus discouraged workers divided by the labour force.
5. In the equation Md = kY - hi, where Md is money demand, the parameter k captures _____
- the speculative demand for money
- the transactions demand for money
- the total demand for money
- the money supply
- the effects of inflation