SOPHIA ECON102 Unit 3 Challenge 3 Latest 2022 May

Question # 00635677
Course Code : ECON102
Subject: Economics
Due on: 06/16/2022
Posted On: 06/15/2022 09:12 PM
Tutorials: 1
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ECON102 Macroeconomics

Unit 3 Challenge 3

In the GDP model, investment (I) could be considered all of the following EXCEPT __________.

a.)the building of a new factory

b.)the purchase of a stock

c.)the purchase of a new restaurant

d.)the increase in capital resources

 

Which of the following is an example of expansionary policy?

a.)Decreasing the salaries of government workers

b.)Government cuts in spending

c.)Decrease in investment

d.)Decrease in taxes

 

The Phillips Curve shows the trade-off between __________.

a.)price level and GDP

b.)inflation and unemployment

c.)tax rates and government revenue

d.)labor and leisure

 

Government securities that are issued for a time period between one and 10 years are known as __________.

a.)commodity money

b.)notes

c.)bills

d.)bonds

 

Economic growth is measured by the __________.

a.)percent increase in nominal GDP over time

b.)GDP, adjusted for inflation over time

c.)growth in the skilled labor force

d.)changes in the unemployment rate over time

 

Higher interest rates will __________.

a.)increase investment in the stock market

b.)decrease the cost of borrowing money

c.)slow down government spending

d.)decrease the consumption in the economy

 

Large budget deficits can have a ______ effect on economic growth because they can cause interest rates to _______.

a.)positive; fall

b.)positive; rise

c.)negative; fall

d.)negative; rise

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SOPHIA ECON102 Unit 3 Challenge 3 Latest 2022 May

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