Question

76 In the above graph, tax revenues vary: Multiple Choice directly with the level of GDP....

76

In the above graph, tax revenues vary:

Multiple Choice

  • directly with the level of GDP.

  • inversely with the level of GDP.

  • directly with the level of government spending.

  • inversely with the level of government spending.

77. The price level has doubled in 35 years. The approximate annual percentage rate of increase in the price level over this period has been:

Multiple Choice

  • 50 percent.

  • 20 percent.

  • 5 percent.

  • 2 percent.

78. Which is the correct way to calculate the unemployment rate?

Multiple Choice

  • [(Unemployed)/(Population)] × 100

  • [(Unemployed)/(Labor force)] × 100

  • [(Labor force)/(Population)] × 100

  • [(Labor force)/(Unemployed)] × 100

79. The level of total spending is the immediate determinant of the:

Multiple Choice

  • ratio of private to public goods production.

  • level of real output and employment.

  • size of the labor force.

  • inflation rate.

80. Shocks to the economy:

Multiple Choice

  • refer to any economic events that change the level of output.

  • are unexpected changes in aggregate demand or aggregate supply.

  • only occur on the demand side.

  • only occur on the supply side.

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Homework Answers

Answer #1

76) tax revenues vary directly with the level of GDP.

Hence, first Option is correct.

77) approximate annual rate of percentage increase in price level= 70/Time taken to double the price level= 70/35= 2

Hence, Fourth Option is correct i.e, 2 percent.

78) Correct way to calculate the Unemployment Rate is to put the labour force in the denominator.

So, Unemployment Rate= [(Unemployed)/(Labor force)] × 100

Hence, Second Option is correct.

79) the level of total spending is the aggregate demand in the economy which determines level of real output and employment. Therefore, the level of total spending is the immediate determinant of the level of real output and employment.

Hence, Second Option is correct.

80) shocks to the economy are unexpected changes in aggregate demand or aggregate supply. They can occur on both demand and supply side.

Hence, Second Option is correct.

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