The natural rate of unemployment includes A) frictional and cyclical unemployment. B) frictional unemployment and structural unemployment. C) only cyclical unemployment. D) only unemployment due to layoffs and corporate downsizing. ANSWER B
Date: September 2nd, 2020
If the savings rate in an economy is 30%, and the level of investment in the economy is $400, the GDP of the economy must be: A) $1,900.25. B) $1,111.22. C) $1,333.33. D) $1,750.50. ANSWER C
Date: September 2nd, 2020
In the short run, if the price level rises, then the overall economy can temporarily produce beyond its nominal capacity. One reason for this is that A) existing capital equipment can be used more intensively. B) the unemployment rate usually rises dramatically along with the price level. C) workers can be switched from counted to […]
Date: September 2nd, 2020
Samia makes $8,000 a month. Samia spends $2,500 on rent and related household expenses, $500 on food, $200 on clothes, $500 on entertainment and $600 on transportation. She always keeps $200 for things like the car breaking down. $3,500 is invested in the stock market. Which of the following statements is TRUE? A) The transactions […]
Date: September 2nd, 2020
Refer to the figure above. What is the equilibrium quantity of credit when the credit demand curve is CD1 and the credit supply curve is CS1? A) $50 B) $20 C) $40 D) $30 ANSWER D
Date: September 2nd, 2020
When private expenditures decrease as a result of increased government spending, this is known as A) the multiplier effect. B) the stabilizer effect. C) government deficit spending. D) the crowding out effect. ANSWER D
Date: September 2nd, 2020
Long-run equilibrium will occur at the price level at which A) the aggregate demand and long-run aggregate supply curves intersect. B) the short-run aggregate supply and long-run aggregate supply curves intersect. C) the long-run aggregate demand and short-run aggregate supply curves intersect. D) the aggregate demand and short-run aggregate supply curves intersect. ANSWER A
Date: September 2nd, 2020
According to the text, the probability of an unemployed person finding a job doubles when A) his unemployment benefits expire. B) the economy enters a recessionary phase. C) his unemployment benefits are extended. D) he is threatened with arrest. ANSWER A
Date: September 2nd, 2020
George makes $250 a week working as a student aid. When he cashes his check he takes $100 to the cashiers office to pay part of his tuition. $25 goes to paying off his books, $75 goes for entertainment and $50 he keeps for unexpected expenditures. Which of the following statements is TRUE? A) The […]
Date: September 2nd, 2020
If the Fed can communicate that it will maintain a(n) ________, the long run nominal interest rate will remain ________. A) expansionary fiscal policy; low B) contractionary fiscal policy; high C) contractionary monetary policy; low D) expansionary monetary policy; low ANSWER D
Date: September 2nd, 2020
