macro economics

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  • Created by: amit
  • Created on: 21-04-15 21:22

1. Deflating a nominal quantity is the process of dividing a ____ quantity by a ______ in order to express the quantity in ______ terms.

  • real; price index; nominal
  • real; nominal quantity; real
  • nominal; nominal quantity; real
  • nominal; price index; real
  • nominal; real quantity; nominal
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Other questions in this quiz

2. In Macroland potential GDP equals €500 billion and real GDP equals €515 billion. Macroland has a(n) _________ gap equal to _____ percent of potential GDP.

  • recessionary; -3
  • expansionary; -3
  • expansionary; -15
  • expansionary; 3
  • recessionary; 3

3. The two main responsibilities of the European Central Bank are to _____ and to ______.

  • conduct monetary policy; oversee financial markets
  • collect taxes; pay the government's expenses
  • enable banks to make affordable mortgages; control the exchange rate of the Euro
  • apprehend counterfeiters; regulate the stock market
  • insure bank deposits; print currency

4. If consumption increases by €9 when after-tax disposable income increases by €10, the marginal propensity to consume equals:

  • 1.0
  • 0.9
  • 0.1
  • 9.0
  • 10.0

5. The tendency of changes in asset prices to affect spending on consumption goods is called the _____ effect.

  • consumption
  • multiplier
  • wealth
  • substitution
  • income

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