quiz 6 - (1 of 20(or expansions are the periods of renewed...

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(1 of 20) ______________ (or expansions) are the periods of renewed economic activity between the troughs and the peaks. inflations recessions troughs recoveries (2 of 20) Too much available _______ relative to the supply of goods and services causes inflation that can initiate a new business cycle. utility money land labor (4 of 20) A______________ is a long term average of economic activity. business cycle secular trend
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Real GDP Nominal GDP (5 of 20) The “unemployment rate” is the number of unemployed people divided by the _____________ . total population total number of employed including the military total civilian labor force none of the above (6 of 20) Individuals under ______years of age, retired, institutionalized, or homemakers are not considered part of the labor force so they cannot be unemployed. 6 60 16 21 (7 of 20) In recent years the economy has been considered to be “fully employed” with a natural unemployment rate of about ____________ percent although some say that figure should be revised upward.
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Unformatted text preview: 10 20 8 4 (8 of 20) According to Okun’s Law . .. if an economy has 7 percent unemployment when 4 percent is the esTmated natural rate, then there would be a __________ percent loss of GDP. three four Fve six SUBMI± ANS (9 of 20) In²aTon is an increase in the ___________ price level. gasoline food health care general By the Rule of 70 if a naTon’s prices are inFaTng at 10 percent it will take _____ years for the prices to double. 10 7 100 2 SUBMI± ANS (11 of 20) Assume in 2016 that your income was $50,000 and in 2017 your nominal income increased to $51,000. If the CPI changed from 100 to 110, then your real (purchasing power) income _______________? went up went down did not change none of the above (12 of 20) If savers anTcipate an inFaTon rate of 10 percent and require a real return of 5 percent, then savers will require an interest rates of _______ percent to be paid on their deposits. 5 10 15 6...
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