(02.04 MC) If the consumer price index for a given year is 120 and the price of the fixed basket of goods for that year is $60, what must the price of the basket have been in the base year?

(02.02 MC) Nominal GDP fails to take account of ________, and real GDP still does not measure ________.

(02.04 LC) The CPI will be ________ when there is ________ in the quality of a good and its price remains the same.

(04.05 MC) When the central bank sets or determines the money supply, which of the following is true?

(03.07 HC) Use the graph to answer the question that follows.Assume that the economy is in a short-run equilibrium as shown on the accompanying graph. Without government intervention, what adjustment over time can be expected?

(02.03 MC) An economy’s natural unemployment rate is 9 percent, its structural unemployment rate is 2 percent, and its cyclical unemployment rate is 3 percent. Based on this data, its frictional unemployment rate is ________, and its actual unemployment rate is ________.

(04.01–04.07 HC) For all graphs, be sure to correctly and completely label all axes and curves and use arrows to indicate the direction of any shifts.The loanable funds market in an economy is in equilibrium. Draw a correctly labeled graph of the loanable funds market, labeling the equilibrium real interest rate and the equilibrium quantity. Show the impact of a decrease in the money supply for this economy in your graph from part (a). Will the result be a shortage or surplus in the loanable funds market at the original equilibrium? Will lenders of existing fixed-rate loans be better or worse off as a result of the change in the real interest rate? How will investment spending on facilities and equipment in this economy be impacted? Explain.

(02.02 MC) The GDP is a measure of the ________ of a country but does not take into account the ________.

(02.01 MC) Which of the following statements explains the difference between final goods and intermediate goods with regards to the GDP?

(02.04 HC) Assume that only two goods are produced in an economy, A and B. In the base year, 6 units of A are produced at a price of $3 and 5 units of B are produced at a price of $2. And in the given year, 6 units of A are produced at a price of $2 and 5 units of B are produced at a price of $6. What is the CPI for the given year?