Economics of Money, Banking and Financial Markets 12th edition by Frederic Mishkin Test bank
Ques Status: Previous Edition
AACSB: Application of Knowledge
16) If real GDP grows from $10 trillion in 2002 to $10.5 trillion in 2003, the growth rate for real GDP is
A) 5%.
B) 10%.
C) 50%.
D) 0.5%.
Answer: A
Ques Status: Previous Edition
AACSB: Analytical Thinking
17) If real GDP in 2002 is $10 trillion, and in 2003 real GDP is $9.5 trillion, then real GDP growth from 2002 to 2003 is
A) 0.5%.
B) 5%.
C) 0%.
D) -5%.
Answer: D
Ques Status: Previous Edition
AACSB: Analytical Thinking
18) If the aggregate price level at time t is denoted by Pt, the inflation rate from time t - 1 to t is defined as
A) πt = (Pt - Pt - 1)/Pt - 1.
B) πt = (Pt + 1 - Pt - 1)/Pt - 1.
C) πt = (Pt + 1 - Pt )/Pt.
D) πt = (Pt - Pt - 1)/Pt.
Answer: A
Ques Status: Previous Edition
AACSB: Application of Knowledge
19) If the price level increases from 200 in year 1 to 220 in year 2, the rate of inflation from year 1 to year 2 is
A) 20%.
B) 10%.
C) 11%.
D) 120%.
Answer: B
Ques Status: Previous Edition
AACSB: Analytical Thinking
20) If the CPI is 120 in 1996 and 180 in 2002, then between 1996 and 2002, prices have increased by
A) 180%.
B) 80%.
C) 60%.
D) 50%.
Answer: D
Ques Status: Previous Edition
AACSB: Analytical Thinking
21) If the CPI in 2004 is 200, and in 2005 the CPI is 180, the rate of inflation from 2004 to 2005 is
A) 20%.
B) 10%.
C) 0%.
D) -10%.
Answer: D
Ques Status: Previous Edition
AACSB: Analytical Thinking