(02.04 HC) Assume that only two goods, A and B, are produced in an economy. In the base year, 5 units of A are produced for a price of $4, and 5 units of B are produced for a price of $6. And in a given year, 5 units of A are produced for a price of $5, and 5 units of B are produced for a price of $9. What is the CPI for the given year?

(02.07 LC) What can you conclude regarding the the economy if it is producing below the full employment level?

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

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

(02.07 LC) At the current equilibrium real GDP, there is a recessionary output gap. Which of the following must be true?

(02.01 HC) Use the table to answer the question that follows. Private spending $16 trillion Government spending $20 trillion Change in inventories $10 trillion Money spent on stocks $5 trillion Net exports $14 trillion Wages to employees $6 trillion What is the GDP of the country, according to the expenditures approach?

(02.04 HC) Assume that an economy produces only two goods, A and B. In the base year, it produces 2 units of A at a price of $2 and 4 units of B at a price of $4. If the next year it produces the same quantity of each good with a $1 price increase for both, what is the consumer price index for that year?

(01.06 MC)A country’s currency is backed by a gold standard. However, gold production has declined and will not recover. Which action would protect the value of the country’s currency in the long run?

(02.05 MC) Which of the following categories are the losers of a higher than expected increase in the price level?

(06.01–06.06 HC) Country X and Country Y are trading partners each with a current account balance of zero. Country X’s currency is the dollar, and Country Y’s currency is the peso. If interest rates in Country X increase, will the immediate consequence be a current account deficit, surplus, or no change for Country X? Explain. Draw a graph of the foreign exchange market for the dollar of Country X. Illustrate the effect of the increase in interest rates in Country X on the value of its dollar compared to the peso of Country Y. Now if Country Y enters a severe recession, what will be the impact on demand for the dollar of Country X? Explain. Based on part (c), what will be the effect on the value of the dollar of Country X compared to the peso of Country Y?