ECON 214 Exam 1 Liberty University Solution
Let’s say a bottle of Dr. Wells (an actual soft drink still available but hard to obtain) cost $0.15 in 1970. If the consumer price index (CPI) in 1970 was 37.8 and the current CPI is 240, then the Inflationadjusted price of Dr. Wells would be (rounded to the nearest penny):
The natural rate of unemployment is:
For the the questions that follow, suppose a country has the following quarterly growth data for the last three years: The country’s longrun average growth rate is 3%. In how many of these quarters did GDP contract?
If real GDP grew by 2% and the inflation rate was 2%, then nominal GDP grew by:
Assuming the price level increased, if real GDP is less than nominal GDP for a given year, then:
The value of the consumer price index (CPI) in 2011 was 229 compared to the base period’s, which will always have the value of:
The government purchases category of GDP includes spending by:
You are offered two jobs, one in Richmond, Virginia, paying $67,000, and one in San Diego, California, paying $79,000. The price index in Richmond is 104.5, and in San Diego it is 132.3. If real wages are the only consideration, then:
Consider a nation in which the price index was 150 last year and this year it is 130. Which statement is correct?
The phase of the business cycle where the economy is growing faster than usual is called:
As a business owner, you find that your resource prices are increasing often. Because these costs are rising, you find it necessary to change your prices frequently. This best describes:
Refer to the following table to answer the questions that follow:
As presented in the table, the rate of inflation from 1999–2000 (i.e., during the year 2000) was (rounded to two decimal places):
Refer to the following table to answer the questions that follow: As presented in the table, the rate of inflation (or deflation) from 2002–2003 was (rounded to two decimal places):
During normal economic times, unemployment in France and Germany tends to be ____________ than in the United States mainly because of ____________.
If the relevant population is 268 million people and the number of people in the labor force is 148 million, the number of people NOT in the labor force is equal to:
Holding all else constant, if people who are currently discouraged workers decide to start looking for jobs again, you will see:
Real GDP would be a better measure of economic wellbeing if it included the value of:
If people bought the same market basket of goods as the average consumer again and again:
Michael Chang buys only tennis rackets during a particular year. During the year in question, the price of all goods rises by 10% on average, but the price of tennis rackets remains the same. Which statement is correct?
Which of the following conditions might cause the unemployment rate to be less than the natural rate of unemployment?
The concept of a price index is that: