Customer Question

The major difference between the Consumer Price Index and the Producer Price Index is that ______. (Points: 3)

the PPI is based on retail prices and CPI is based on wholesale prices

the PPI measures the cost of living of self-employed workers and the CPI measures the cost of living of salaried workers

the PPI generally registers a higher rate of inflation than the CPI

the PPI is based on the cost of a basket typically purchased by producers, while the CPI is based on the cost of a basket typically purchased by consumers

41. The best currently available measure of the standard of living in a country is ______. (Points: 3)

the nominal GDP per capita

the real GDP per capita

the unemployment rate

the growth rate of productivity

44. For developed countries, which of the following would be considered the most important drive in productivity growth? (Points: 3)

educational level of attainment

the amount of physical capital

technology

the abundance of natural resources

48. Which of the following is considered an act of investing in a physical asset? (Points: 3)

purchasing shares of stock in IBM

selling shares of stock in IBM

buying a bond issued by IBM

buying a new factory that produces IBM handheld devices

50. The loanable funds market maximizes ______. (Points: 3)

the interest rate to savers

the rate of return by borrowers

the gains from trade between lenders and borrowers

the amount of investment spending in the economy

51. Crowding out negatively affects the economy by ______. (Points: 3)

decreasing government borrowing

decreasing consumption

increasing private borrowing

reducing investment spending by the private sector on physical capital

52. A financial asset is ______. (Points: 3)

a tangible asset like a car

a claim that entitles the owner to future income from the seller

the value of accumulated savings

all of the above

54. A mutual fund ______. (Points: 3)

always includes a base year

owns a diversified portfolio

always earns a profit

involves a lower rate of return for any given level of risk

55. The aggregate supply curve shows the relationship between ______. (Points: 3)

the price of oil and the quantity of aggregate output supplied

the aggregate price level and the quantity of aggregate output supplied

the price of money and the quantity of aggregate output supplied

the level of employment and the quantity of aggregate output supplied

56. Stagflation is a combination of ______. (Points: 3)

increasing unemployment and increasing inflation

decreasing unemployment and decreasing inflation

increasing unemployment and decreasing inflation

decreasing unemployment and increasing inflation

57. In the long run, changes in the aggregate price level will be accompanied by ______. (Points: 3)

less than proportional changes in input prices

more than proportional changes in input prices

equal proportional changes in input prices

changes in input prices that will move in the opposite direction

58. The point where the long-run aggregate supply curve intercepts the horizontal axis ______. (Points: 3)

is the point of macroeconomic equilibrium

is the economys potential output

is the level of real GDP the economy would produce if all prices were flexible and wages were fixed

is all of the above

59. The interest rate effect of an aggregate price level change causes ______. (Points: 3)

the long-run aggregate supply curve to be vertical

the aggregate demand curve to be negatively sloped

the short-run aggregate supply curve to be positively sloped

the aggregate demand curve to be positively sloped

60. Suppose that the stock market crashes. Which of the following is most likely to occur? (Points: 3)

the aggregate demand curve shifts to the right

the aggregate demand curve shifts to the left

a movement up the aggregate demand curve