ID: B 44. The CPI was 238 in one year and 244 the following year. How much did p
ID: 1120301 • Letter: I
Question
ID: B 44. The CPI was 238 in one year and 244 the following year. How much did prices rise between these two ye a. 0.03 percent b. 5.50 percent c. 2.52 percent d. 2.46 percent -45. A federal budget deficit a. will always result when Congress and the president cannot agree on b. occurs when tax revenues exceed government expenditures c. occurs when monetary policy works in the opposite direction of fiscal policy. d. occurs when transfer payments exceed tax revenues. e. occurs when government expenditures exceed tax revenues expenditures. 46. As the price level falls a the purchasing power of cash holdings remains constant b. the purchasing power of cash holdings falls. c. the purchasing power of cash holdings rises. d. cash holdings turn into dollar-denominated assets. e. none of the above 47. Suppose the economy is at a position below the institutional production possibilities frontier. In response this situation, Keynesian economists would propose that the govenment shouldexpenditure which will cause the aggregate demand curve to shift to the in an attempt to close this gap. increase; right; inflationary a. b. c. d. e. decrease; left; recessionary decrease; left; inflationary decrease; right; inflationary increase; right; recessionary 48. A federal budget surplus a. occurs when tax revenues exceed transfer payments. b. occurs when government expenditures exceed tax revenues. c. is an impossibility d. occurs when tax revenues exceed government expenditures. e. occurs when monetary policy works in the opposite direction of fiscal policy. 49. The real balance effect describes the change in the output producers produce as they attempt to balance their production in response to a. changes in consumers' demand. b. the value of cash holdings that results from a change in the price level. c. the value of physical assets (e.g., houses) that results from a change in the price level d. checking account balances that occur when the money supply increases or decreases e. the balance of cash holdings that results from a change in the amount of income earned. 50. "Full employment" is said to exist when the unemployment rate equals a. b. c. d. the structural unemployment rate. zero. the natural unemployment rate. the cyclical unemployment rate.Explanation / Answer
44. The correct answer is C.
45. The correct answer is E.
46. The correct answer is C.
47. The correct answer is E.
48. The correct answer is D.
49. The correct answer is B.
50. The correct answer is C.