Perhaps the best measure of economic progress is
A. the annual inflation rate, since it accounts for what is happening to prices.
B. the growth rate of real GDP per capita, since it takes into account both price changes and population growth.
C. the amount of working time needed for an individual worker to afford certain goods and services.
D. the annual growth rate in the population.
Answer: B
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The difference between inventories and inventory investment is that typically ________
A) the first one is a stock of unfinished or unsold goods; the second one is a flow that indicates productive activity B) the first one denotes the change in holdings of capital; the second one includes most final goods C) the first one is measured at the beginning of the year; the second one is measured at the end of the year D) all of the above E) none of the above
Suppose a banking system has a required reserve ratio of 0.10. How much can the money supply increase in response to a $500 increase in excess reserves for the whole banking system?
A. $4,500. B. $5,000. C. $50. D. $500.
Which one of the following would increase income inequality as measured by official Census data and the quintile distribution?
A. A doubling of Social Security retirement benefits. B. The elimination of the SNAP program. C. The elimination of the TANF program. D. Reduced divorce rates.
Many economists believe
A) the Fed could have reduced the severity of the Great Depression by raising interest rates. B) the Fed could have reduced the severity of the Great Depression by encouraging banks to make fewer loans to insolvent businesses. C) bank failures increased the severity of the Great Depression. D) the severity of the Great Depression and the policies of the Fed were unrelated.