The statistic used by economists to measure the value of economic output is:

A fixed-weight price index like the CPI ______ the change in the cost of living because it ______ take into account that people can substitute less expensive goods for ones that have become more expensive.

When bread is baked but put away for later sale, this is called:

The circular flow model shows that households use income for:

The real wage is the return to labour measured in:

If domestic saving is less than domestic investment, then net exports are ______ and net capital outflows are ______.

If a French corporation purchases a product made in the U.S. and the American producer uses the proceeds to purchase a French government bond, then French net exports ______ and net capital outflows ______.

If the steady-state rate of unemployment equals 0.125 and the fraction of unemployed workers who find jobs each month (the rate of job findings) is 0.56, then the fraction of employed workers who lose their jobs each month (the rate of job separations) must be:

Unemployment insurance increases the amount of frictional unemployment by:

The Solow growth model describes:

In the steady state, the capital stock does not change because investment equals:

In the Solow model with technological change, the Golden Rule level of capital is the steady state that maximizes:

The analysis in Chapter 8 of the current capital stock in the United Kingdom versus the Golden Rule level of capital stock shows that the capital stock in the United Kingdom is:

Planned expenditure is a function of:

The government-purchases multiplier indicates how much ______ change(s) in response to a 1€ change in government purchases.

If MPC = 0.75 (and there are no income taxes) when G increases by 100, then the IS curve for any given interest rate shifts to the right by:

If the money supply increases, then in the IS-LM analysis the ______ curve shifts to the ______.

If short-run equilibrium in the Mundell-Fleming model is represented by a graph with Y along the horizontal axis and the exchange rate along the vertical axis, then the LM^* curve:

In a small open economy with a floating exchange rate, the supply of real money balances is fixed and a rise in government spending:

The imperfect-information model bases the difference in the short-run and long-run aggregate supply curve on:

After examining international data, the economist Robert Lucas found that aggregate demand has the biggest effect on output in countries where aggregate demand:

The underground economy:

In a closed economy, the components of GDP are:

Assume that the consumption function is given by C = 150 + 0.85(Y - T), the tax function is given by T = t₀ + t₁Y, and Y is 5,000. If t₁ decreases from 0.3 to 0.2, then consumption increases by:

Real money balances equal the:

If velocity is constant and, in addition, the factors of production and the production function determine real GDP, then:

If the real exchange rate is high, foreign goods:

In a small open economy, starting from a position of balanced trade, if the government increases the income tax, this produces a tendency toward a trade ______ and ______ net capital outflow.

If the per-worker production function is given by y = k^1/2, the saving ratio is 0.3, and the depreciation rate is 0.1, then the steady-state ratio of capital to labour is:

Examination of recent data for many countries shows that countries with high saving rates generally have high levels of output per person because:

If productivity growth in the United Kingdom had remained at its level before the recent productivity slowdown, real income today would be more than ______ per cent higher.

In the two-sector endogenous growth model, the saving rate (s) affects the steady-state:

The simple investment function shows that investment ______ as ______ increases.

Economists based their prediction that secular stagnation would occur as economies prospered on the conjecture that:

When the consumer has chosen his or her optimal values of first-period and second-period consumption, the marginal rate of substitution equals:

In a system with fractional-reserve banking:

The reserve-deposit ratio is determined by:

The Phillips curve depends on all of the following forces except:

The assumption of adaptive expectations for inflation means that people will form their expectations of inflation by:

The rate of inflation is the: