Answer Happy

Econ 103. REVIEW FOR THE FINAL 1. The effects of a change in the interest rate on equilibrium income can be summarized as follows. a. tr 1 AE - Y b. tr 11 → AE1 →↓ c. 111AE → Y d. 111AE1 → 11 2. Expansionary fiscal policy refers to: a. an increase in the money supply b. an increase in taxes. c. a decrease in the money supply d. either an increase in government spending or reduction in net taxes 3. An individual who cannot find a job because his or her job skills have become obsolete is an example of a. Frictional unemployment b. Structural unemployment c. Cyclical unemployment d. Seasonal unemployment 4. Which of the following is included in the economist's definition of inflation? a. An increase in the price of one good. b. An increase in the overall price level over a significant period of time. c. A onetime increase in the overall price level. d. All of the above. 5. Which of the following indexes are used to measure the overall price level? a. Consumer Price Index (CPI) b. Producer Price Index (PPI) c. GDP Deflator d. All of the above 6. A price index is a. a measurement showing how the average price of a bundle of goods changes over time. b. a measurement showing the cost of a bundle of goods at a point in time. C. a sustained increase in the overall price level. d. a decrease in the overall price level. 7. Higher labor productivity can be attributed to: a. An increase in the quality of labor. b. An increase in the quality of capital. c. An increase in capital per worker. d. All of the above