Question

Question 21 (1 point)

Which of the following statements is true?

a	To prevent the politicization of macro policies, most countries have put politically independent central banks in charge of monetary policy.
b	Regulatory capture happens when a government agency’s regulations and enforcement activities come to be heavily influenced by the industry it is supposed to be regulating.
c	Political corruption is the unlawful misdirection of governmental resources that occurs when governmental officials abuse their entrusted powers for personal gain.
d	All of the above.
e	Only a) and b)

Question 22 (1 point)

Which of the following statements is true?

a	Business Cycle refers to fluctuations in real GDP around its long-term trend.
b	A recession is a slowdown of the overall economic activity.
c	During an expansion total output (real GDP) declines and unemployment increases.
d	All of the above.
e	Only a) and b)

Question 23 (1 point)

Which of the following statements is true?

a	The Great Recession took place between December 2006 and June 2009.
b	Real gross domestic product (Real GDP) is a measure of the quantity of final goods and services produced (for the marketplace) within the borders of a country during a specific period of time, typically a year.
c	Real GDP is calculated by taking Nominal GDP, and statistically removing from it the effects of the price changes that have occurred over time.
d	All of the above.
e	Only b) and c)

Answer 1

21. The answer is D.

To prevent the politicization and misuse of macro policies, most countries have put politically independent central banks in charge of monetary policy. For example US has Fed and India has RBI.

22. The answer is e.

During expansion total output and employment increases.

23. The answer is c

The great recession took place between dec2007 and jun2009.

Nominal GDP is a measure of the quantity of final goods and services produced (for the marketplace) within the borders of a country during a specific period of time, typically a year.