If the population increase in India is smaller than the increase in Indian real GDP then per capita will correct answers increase
The main cost that low inflation imposes on an economy is that low inflation correct answers distorts come economic decisions
The use of automated teller machines ...
if the population increase in india is smaller tha
Written for
ECO 231
ECO 231
Seller
Follow
FullyFocus
Reviews received
Content preview
ECO 231 EXAM 2 || with Error-free Solutions.
If the population increase in India is smaller than the increase in Indian real GDP then per capita
will correct answers increase
The main cost that low inflation imposes on an economy is that low inflation correct answers
distorts come economic decisions
The use of automated teller machines (ATMs) has caused some back tellers to lose their jobs.
This is an example of correct answers structural unemployment
If you as a leader want an increase in purchasing power of 4 percent from making a loan and you
set the nominal interest rate at 9 percent, then your correct answers expected rate of inflation is 5
percent
Growth in potential GDP depends on correct answers the labor force growth rate, capital stock
growth rate, and rate of technical progress
If part of the labor force is unemployed, the foregone goods and services are correct answers are
lost forever
What two growth rates comprise the growth rate of potential GDP? correct answers Labor input
and hours worked
The most likely group of the following that would be eligible for unemployment insurance
benefits is correct answers experienced workers recently laid off
The real interest rate is equal to correct answers Nominal interest rate - expected inflation rate
When unexpected inflation occurs correct answers average prices have increased
An increase in the capital stock will shift the production function correct answers upward
If borrowers and lenders expect a higher rate of inflation correct answers nominal interest rates
should increase
As the unemployment rate rises correct answers lost national output rises
Suppose a small country of Trantor has a steady growth rate of 2.5 percent. Its GDP is expected
to double in correct answers 28 years
If the capital stock increases, then the economy can produce ____ output with the ____ amount
of labor. correct answers more, same
The amount of good and services the economy could produce if the labor force is fully employed
is called correct answers potential GDP
, The principal benefit of unemployment insurance is that it correct answers replaces income lost
due to unemployment
Table 28-4
2010 Labor Data for Adults (ages 16 and older) in Meditor
What is the adult population in Meditor? correct answers 6.25%
When the government rapidly increase the supply of money, the usual result is correct answers
hyperinflation
The shortfall between actual real GDP and potential GDP correct answers increases as the
unemployment rate rises
The federal government collects taxes on correct answers nominal capital gains
Olga owns her own business. Sven is an unpaid worker in his family's business. Who is included
in the Bureau of Labor Statistics' "employed" category? correct answers both Olga and Sven
Full employment implies which of the following is reduced to zero? correct answers Cyclical
unemployment only
Labor productivity is defined as correct answers the amount of output a typical worker turns out
is an hour of work
If 10 years ago, the price of a movie ticket was $5 and the average hourly wage was $10, and
today the price of a movie ticket is $8 and the average hourly wage is $20, then correct answers
movies are now relatively cheaper in terms of work hours.
Technological change or the effects of automation cause correct answers structural
unemployment
Economic growth is most likely to solve the problems of correct answers world poverty
Inflation affects borrowers and lenders differently. After signing a contract with a fixed nominal
interest rate, it can be expected that correct answers borrowers will hope that prices rise
Over long periods pf time, the growth rates of actual and potential GDP have been correct
answers similar
After a particular loan has been paid off, neither the borrower nor the lender has lost purchasing
power. Therefore, it must be true that actual inflation was correct answers equal to expected
inflation
To measure how productive workers in the economy are, the best measure to use would be
correct answers GDP divided by hours worked
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller FullyFocus. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £8.91. You're not tied to anything after your purchase.
