macro economics

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

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.
  • 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

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