Which of the following conclusions is not supported by the Three-Sector-Model?
a. An increase in a nation's supply of goods and services raises the amount sold per time period and lowers the nation's GDP Price Index.
b. An increase in the demand for a nation's currency in the foreign exchange market raises its international value.
c. An increase in a nation's real risk-free interest rate increases the willingness and ability of lenders/savers to supply credit to the real loanable funds market, and it decreases the willingness and ability of individuals and companies to borrow/invest.
d. An increase in a nation's demand for goods and services within the Classical range usually leads to a strong decrease in the unemployment rate.
Question 2 - Inflation occurs when:
a. The prices of all goods and services rise by the same percent during a given period of time.
b. There is a sustained increase in the average price level.
c. There is an increase in the price level of raw materials.
d. The contraction of the monetary base leads to a decrease in the average price level.
Question 3 - Which of the following statements about the real goods market is not true?
a. Among the most important factors influencing the shape of the aggregate supply curve is the nation's rate of resource utilization.
b. Among the key indicators that provide clues about where a nation is on its aggregate supply curve is the unemployment rate.
c. If the nation were near the Keynesian range, a strong increase in real GDP would be accompanied by relatively weak rise in the price index.
d. In the classical range, a significant increase in real GDP is accompanied by a relatively small increase in the price index.
e. All of the above are true.
Question 4 - Hyperinflation:
a. Has no official definition.
b. Usually ends with the nation abandoning its old currency and establishing a new one.
c. Is good for most nations because it increaes their nominal GDPs.
d. Is really a relic of the past with no current-day counterparts.
Question 5 - An increase in aggregate demand leads to the strongest increase in the price index, when the economy is in the:
a. Classical range.
b. Keynesian range.
c. Intermediate range.
d. There is not enough information to tell.
e. None of the above.
Question 6 - A clear conclusion from offshoring debates and analyses is that:
a. If offshoring isn't stopped, some nations are likely to go bankrupt.
b. Tariffs and quotas are needed to protect nations from offshoring's ill effects.
c. Offshoring is often disruptive in the short run and can have significant transition costs.
d. Offshoring lacks any potential to increase a nation's GDP and holds only the potential to keep GDP the same or reduce it.
Question 7 - Which of the following statements about the real goods market is not true?
a. Among the most important factors influencing the shape of the aggregate supply curve is the nation's rate of resource utilization.
b. Among the key indicators that provide clues about where a nation is on its aggregate supply curve is the unemployment rate.
c. If the nation were near the Keynesian range, a strong increase in real GDP would be accompanied by relatively weak rise in the price index.
d. In the Classical range, a significant increase in real GDP is accompanied by a relatively small increase in the price index.
e. All of the above are true.
Question 8 - A clear conclusion from offshoring debates and analyses is that:
a. If offshoring isn't stopped, some nations are likely to go bankrupt.
b. Offshoring should be evaluated on a net basis, which means by the difference between the effects of onshoring and offshoring.
c. Tariffs and quotas are an ideal means of protecting nations from offshoring's ill effects.
d. offshoring always decreases GDP in the nation from which it takes place.
e. All of the above are clear conclusions from these debates and analyses.