Questions from Macroeconomics


Q: Consider two alternatives for Stromboli is 2018. In one case (

Consider two alternatives for Stromboli is 2018. In one case (a) its inhabitants eat 60 million pizzas and build 6,000 pizza ovens. In case (b), the population eats 15million pizzas but builds 18,000...

See Answer

Q: Which of the following items are likely to be normal goods for

Which of the following items are likely to be normal goods for a typical consumer? Which are likely to be inferior goods? a. Expensive perfume b. Paper plates c. Secondhand clothing d. Oversea...

See Answer

Q: Which of the following problems are likely to be studied by a

Which of the following problems are likely to be studied by a microeconomist and which by a macroeconomist? a. The rapid growth of Twitter b. Why unemployment in the United States fell from 2010 to 20...

See Answer

Q: Use an aggregate supply-and-demand diagram to study what

Use an aggregate supply-and-demand diagram to study what would happen to an economy in which the aggregate supply curve never moved while the aggregate demand curve shifted outward year after year.

See Answer

Q: If output rises by 35 percent while hours of work increase by

If output rises by 35 percent while hours of work increase by 40 percent, has productivity increased or decreased? By how much?

See Answer

Q: Below you will find the yearly average values of the Dow Jones

Below you will find the yearly average values of the Dow Jones Industrial Average, the most popular index of stock market prices, for five different years. The Consumer Price Index for each year (on a...

See Answer

Q: What is the real interest rate paid on a credit card loan

What is the real interest rate paid on a credit card loan bearing 12 percent nominal interest per year, if the rate of inflation is a. zero? b. 4 percent? c. 8 percent? d. 15 percent?

See Answer

Q: Suppose you agree to lend money to your friend on the day

Suppose you agree to lend money to your friend on the day you both enter college at what you both expect to be a zero real rate of interest. Payment is to be made at graduation, with interest at a fix...

See Answer

Q: Two countries have the production possibilities frontier (PPF) shown in

Two countries have the production possibilities frontier (PPF) shown in Figure 3. Consumia chooses point C, whereas Investia chooses point I. Which country will have the higher PPF the following year?...

See Answer

Q: What are the four main components of aggregate demand? Which is

What are the four main components of aggregate demand? Which is the largest? Which is the smallest?

See Answer