【正文】 0 / 1GDP last year in a closed economy was $2000, taxes were $100, government spending was $200, and consumption was $1200. What was national saving?a.$1000b.$800c.$700d.$600ANSWER:If the market for loanable funds is not in equilibrium, which of the following factors must change to bring it to equilibrium?a.outputb.profitsc.the inflation rated.the interest rateANSWER:0 / 1s pool of savingd.improve the nation39。 total revenue fromANSWER:CPOINTS:If the current market interest rate for loanable funds is below the equilibrium level, then there is aa.shortage of loanable funds and the interest rate will rise.b.surplus of loanable funds and the interest rate will rise.c.shortage of loanable funds and the interest rate will fall.d.surplus of loanable funds and the interest rate will fall.ANSWER:2.0 / 14.0 / 1 and public savings is the ine that households have left after paying for taxes and consumption.ANSWER:5. / 1Productivity is determined by a country’s physical capital, human capital, natural resources and technological knowledge.POINTS:What is productivity and why is it important?RESPONSE:Which of the following would be most likely to cause the real ine per person of poorer countries to rise?a.a more rapid population growthb.a rapid rate of inflationc.an international minimumwage lawd.an increase in foreign investment that enhanced the productivity of the labour forceANSWER:0 / 1Which of the following factors would be most likely to encourage capital formation in a poorer nation?a.the expectation of sustained high rates of inflation in the futureb.the expectation that property rights will remain securec.the expectation that a struggle between capitalist and socialist forces will lead to major structural change in the economyd.an increase in corporate taxes in order to finance an expanded government welfare programANSWER:0 / 16.BPOINTS:DPOINTS:5.TPOINTS:ANSWER: If the CPI in 1996 was and in 1995 was , calculate the inflation rate for 1996.RESPONSE:3. / 1CPOINTS:A change in the price of imports bought by consumers will bea.reflected in the GDP deflatorb.reflected in GDPc.reflected in the CPId.reflected in net national ineANSWER:11.CPOINTS:s overall price level is risingd.an increase in the purchasing power of the dollarANSWER:If the prices of Brazilianmade shoes imported into Canada increases, thena.both Canada’s GDP deflator and it’s consumer price index will increase.b.neither Canada’s GDP deflator nor it’s consumer price index will increase.c.Canada’s GDP deflator will increase but its CPI will not increase.d.Canada’s consumer price index will increase, but its GDP deflator won’t change.ANSWER:TPOINTS:The consumer price index pares the price of a fixed basket of goods and services to the price of the basket in the base year. On the other hand, the GDP deflator pares the price of currently produced goods and services to the price of the same goods and services in the base years.ANSWER: / 1 Real GDP is not affected by changes in the level of prices, so it reflects only changes in the amounts being produced.POINTS: while GNP is the total ine earned by a nation’s permanent residents or nationals (that is, Canadians). GNP differs from GDP by including ine that citizens of the nation (Canada) earned aboard, and excluding ine that foreigners earn in the particular country (. in Canada).POINTS: (3) government purchases or spending on goods and services by the local, provincial, and federal levels governments。0 / 114.CPOINTS:The purchase of final goods and services by households is calleda.investmentb.public sector expenditurec.consumptiond.net exportsANSWER:0 / 1Gross domestic producta.is the market value of all final goods and services produced within a country in a given period (usually a year)b.is the ine in the hands of individuals after deducting ine taxes。0 / 1If a province makes the production and sale of illicit drugs legal, then GDPa.must increase.b.must decrease.c.wouldn39。0 / 1The purchase of new houses by households is included in the calculation of personal consumption expenditures of GDP.ANSWER:FPOINTS:1.The circular flow diagram describes all transactions between households and firms in a simple economy and shows the equality of expenditures and ine.ANSWER:0 / 14.FPOINTS:t change.d.may increase or decrease.ANSWER: ine available to households to spend and savec.is the value of goods and services purchased by all levels of government— federal, provincial, and local—in a given periodd.is the market value of all final goods and services produced by permanent residents of a nation in a given time periodANSWER:CPOINTS:11.0 / 1The ponents of GDP area.C + I + Gb.NX + G + Cc.C + G + NXd.C + I + G + NXANSWER:Short Answer and (4) net exports which is spending on domestically produced goods and services by foreigners (exports) minus spending on foreign goods and services by domestic resident (imports).POINTS: / 1 / 11.TPOINTS:4.0 / 12.DPOINTS:5.CPOINTS:8.0 / 1Frank39。CPOINTS:14.0 / 1Differentiate between the nominal rate of interest and the real rate of interest.RESPONSE:ANSWER:The problems are: (1) Prices do not change proportionately. Consumers respond by buying less of the goods whose prices have risen by large amounts and by buying more of the goods whose price have risen by less, or even fallen. The index is puted using a fixed basket of items, so theses