Student ID: 21601839 Exam: 050473RR -GDP, GROWTH, AND STABILITY When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you hit Submit Exam. If you need to exit before completing the exam, click Cancel Exam. Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer. 1. Which one of the following is used to measure directly the average standard of living across countries? A. Purchasing power parity B. GDP per person C. Real GDP D. Nominal GDP 2. The total amount of income earned by U.S. resource suppliers in a year, plus taxes on production and imports, is measured by A. gross domestic product. B. disposable income. C. national income. D. personal income. 3. The business cycle depicts A. the phases a business goes through from when it first opens to when it finally closes. B. the evolution of technology over time. C. short-run fluctuations in output and employment. D. fluctuations in the general price level. 4. In which phase of the business cycle will the economy most likely experience rising real output and falling unemployment rates? A. Expansion B. Peak C. Recession D. Trough 5. Most economists agree that the immediate cause of most business cycle variation is A. the growth and subsequent bursting of financial bubbles. B. an unexpected change in the level of total spending. C. an unexpected change in the productivity of workers. D. the invention of new products.
6. Modern economic growth refers to countries that have experienced an increase in A. real output spread evenly across all sectors of the economy. B. real GDP over time. C. nominal GDP over time. D. real output per person. 7. Innovations such as the microchip and the Internet lead to business cycle variations because A. they cause prices to be sticky. B. the central bank will…