mona . In the consumer price index of the United States: the current cost of a basket of goods is compared to the base-period cost of the same basket of goods. calculation of the base-period index is always equal to 100. the base period is 1982–1984. the current cost of a basket of goods is compared … Read more
. An example of investment spending would be: purchase of a bond. purchase of a loaf of bread. purchase of a new productive machine. all of the above.
Inflation is when there is: a rising aggregate price level. an expansion of output. a rise in wages. a rise in the unemployment rate.
Real GDP is nominal GDP adjusted for: double counting. changes in prices. population. imports
Which of the following is NOT included in investment spending in the national income accounts? new residential construction the purchase of machinery and other productive physical capital the purchase of stocks and bonds by a business spending on inventories
Goods and services that are produced in a foreign country but consumed domestically are called: exports. imports. investment goods. consumer durables
A trade surplus occurs: during economic contractions only. when the value of goods and services a country imports exceeds the value of goods and services it exports. when the value of goods and services a country imports is less than the value of goods and services it exports. when unemployment is rising
Inflation affects people adversely because: nominal income falls during inflation. purchasing power tends to increase during inflation budget deficit increases during inflation. inflation causes money to lose its value over time if the overall price level is rising.
An expansion is a period in which: output declines. the price level falls. output rises. unemployment rises.
A business cycle is: a very deep and prolonged economic downturn. a period in which output and employment are rising. a period in which output and employment are falling. a short-run alternation between economic upturns and downturns.