ECON 214 ECON214 Module 2 Exam 1 (Liberty University)

ECON214 Module 2 Exam 1 (Liberty University)

1. Other things the same, a decrease in the price level makes the dollars people hold worth 
2. During periods of high and variable inflation, which of the following is unlikely to occur?
3. Which of the following groups would most likely benefit from unanticipated inflation?
4. The figures below (in millions) are for the United States during the year 2003. 
5. In contrast with unanticipated inflation, anticipated inflation implies that
6. The current U.S. unemployment insurance program 
7. The population (age 16 and over) of Econoland is 100 million; 5 million are unemployed, and 70 million hold jobs. The labor force participation rate in Econoland is
8. Other things equal, which of the following is true? 
9. A business spends $10 million on new capital equipment, and during the same year, $7 million of its existing capital wears out. Which of the following is correct?
10. If the quantity of euro demanded were greater than the quantity supplied, then the price of the
11. If nominal GDP increased 2 percent during a year, while real GDP increased 4 percent, the
12. Suppose you are earning 5 percent nominal interest on your savings account. If the rate of inflation is 3 percent, the real rate of interest you are earning is
13. Babe Ruth's 1931 salary was $80,000. Government statistics show a consumer price index of 15.2 for 1931 and 215 for 2008. Ruth's 1931 salary was equivalent to a 2008 salary of about 
14. Within the framework of the AS/AD model, which of the following is a true statement regarding short-run aggregate supply?
15. When an economy operates at its long-run potential output level,
16. If the dollar price of the English pound goes from $1.50 to $2.00, the dollar has 
17. Which of the following provides the most accurate description of monetary policy?
18. Which of the following would increase the GDP of the United States?
19. A real estate salesperson sells a house in 2009 that was built in 1990. How does this transaction get counted in the GDP statistics?
20. Suppose the CPI was 95 in 1955, and suppose currently the CPI is 475. According to the CPI, $100 today purchases the same amount of goods and services as
21. Who among the following is most likely to favor an appreciation of the U.S. dollar?
22. Which of the following is true?
23. In a modern dynamic economy such as the United States, full employment generally means
24. Which one of the following events will leave GDP unchanged?
25. Which of the following events will increase GDP?
26. Which of the following will most likely occur during the expansionary phase of a business cycle?
27. If people suddenly anticipate that inflation will rise during the next year, which of the following is most likely?
28. If there is a surplus of loanable funds
29. Which of the following will contribute to GDP?
30. A depreciation in the U.S. dollar on the foreign exchange market will