If Chris pays $500 for a bond that will return $750 in one year, what is the interest rate?
a. 50 percent
b. 10 percent
c. 25 percent
d. 250 percent
e. 33 percent
A
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If the price of peanuts increases by 10 percent and the price of potato chips does not change, then the relative price of peanuts with respect to potato chips will ________ and the relative price of potato chips with respect to peanuts will ________
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
The endogenous variable in the aggregate demand curve is ________
A) the real interest rate B) output C) inflation D) planned expenditure E) none of the above
What does the graph point at the intersection of $2 per pound and 3,000 pounds of coffee show?
a. an equilibrium point
b. a shortage of quantity supplied
c. a deficit of quantity demanded
d. a surplus of quantity supplied
Why do many economists argue that modern macroeconomics began in the 1930s during the Great Depression?
a. The Great Depression disproved many of the concepts of traditional microeconomics, necessitating the growth of a new field of theory. b. The devastating effects of the Great Depression drove economists to discover ways to mitigate unemployment through economic policy. c. Macroeconomics developed as a way to capture growing interest in economics, previously an obscure field of study, following the Great Depression. d. Before the Great Depression, unemployment had little impact on national economies, and macroeconomic principles were largely inapplicable.