Principles of Macroeconomics
An assignment focused on key principles of macroeconomics, including national income, inflation, and fiscal policy.
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Principles of Macroeconomics
Economics 2002.01
Principles of Macroeconomics
Homework Two (Chapters 5 and 6)
11 Points
The following assignment contains 11 multiple choice problems. Select the best answer.
1. The three macroeconomic goals are ___.
a. full employment, balanced budgets, and stable prices
b. balanced budgets, stable prices, and stable growth
c. balanced budgets, full employment, and stable growth
d. stable growth, full employment, and stable prices
Answer: d. stable growth, full employment, and stable prices
2. The lowest point of a business cycle is the ___.
a. the expansion
b. the trough
c. the contraction
d. the peak
Answer: b. the trough
3. Use the following information to determine the value of the price index.
Base Year
Price
Quantity Current Year
Price
Food $5 400 $4
Clothing $30 150 $50
Shelter $200 25 $200
a. price index = 14,100
b. price index = .82
c. price index = 1.23
d. price index = 1.08
Answer: price index = .82
4. Suppose five years ago, the price index had a value of 135 and it now has a value of 147.
Based on this information, the rate of inflation over the five years is ___.
a. 8.1%
b. 12.3%
c. 11.25%
d. 8.9%
Answer: a. 8.1%
Economics 2002.01
Principles of Macroeconomics
Homework Two (Chapters 5 and 6)
11 Points
The following assignment contains 11 multiple choice problems. Select the best answer.
1. The three macroeconomic goals are ___.
a. full employment, balanced budgets, and stable prices
b. balanced budgets, stable prices, and stable growth
c. balanced budgets, full employment, and stable growth
d. stable growth, full employment, and stable prices
Answer: d. stable growth, full employment, and stable prices
2. The lowest point of a business cycle is the ___.
a. the expansion
b. the trough
c. the contraction
d. the peak
Answer: b. the trough
3. Use the following information to determine the value of the price index.
Base Year
Price
Quantity Current Year
Price
Food $5 400 $4
Clothing $30 150 $50
Shelter $200 25 $200
a. price index = 14,100
b. price index = .82
c. price index = 1.23
d. price index = 1.08
Answer: price index = .82
4. Suppose five years ago, the price index had a value of 135 and it now has a value of 147.
Based on this information, the rate of inflation over the five years is ___.
a. 8.1%
b. 12.3%
c. 11.25%
d. 8.9%
Answer: a. 8.1%
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Document Details
University
University of the West Indies
Subject
Economics