Econ101 Midterm 2 Practice Questions With 100% Correct Answers.

Econ101 Midterm 2 Practice Questions With 100% Correct Answers. The quantity theory of money implies that the money supply times the velocity of money equals: - answernominal gdp Which of the following elements reduces structural unemployment? - answerthe enhancement of worker retraining programs Structural unemployment is caused by: - answerlong-lasting shocks to permanent features of an economy that make it more difficult for some workers to find jobs. When bond prices increase, interest rates: - answermust decrease. For an aggregate demand curve with M = 10% and v = 0%, if inflation is 6%, then real growth is: - answer4%. Catching-up growth is growth due to: - answercapital accumulation Why is the demand to borrow positively related to the rate of economic growth? - answerThe incentive to invest is enhanced by economic growth. In the graph of the AD-AS model, what is measured on the vertical axis? - answerthe inflation rate During recessions the unemployment rate: - answerincreases. Which of the following combinations would be on an aggregate demand curve with a spending growth rate of 6%? - answerinflation rate of 8%, real growth rate of -2% The consumer price index measures the: - answeraverage price of a basket of goods and services bought by a typical consu