Refer to Table 20-11. Suppose an economy has only three goods and the typical family purchases the amounts given in the table above. If 2011 is the base year, then what is the CPI for 2016?
A) 40.08 B) 100 C) 180 D) 208
D
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If a corporate bond with face value of $1,000 has an interest rate of seven percent paid once a year for a term of 10 years, what is the size of the coupon payment?
A) $1,000 B) $700 C) $70 D) $7
According to the misperceptions theory, short-lived shocks may have long-term effects on the economy because of
A) multiplier effects. B) propagation mechanisms. C) accelerator effects. D) automatic stabilizers.
Ingrid operates a business that provides optics equipment to the government. She just received a government contract for $2 million. She then hires three new employees and buys a great quantity of supplies from several vendors. Her employees and the vendors earn more money, pay more taxes, spend more money, and save more money. This is an example of ______.
a. automatic stabilization b. the Laffer curve c. the multiplier effect d. contractionary policy
If the firm were a perfect competitor in the long run, how much would its output be?
