Practice Exam 2 - Macro-exam2-Winter2007(Practice Multiple Choice Identify the letter of the choice that best completes the statement or answers

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Macro-exam2-Winter2007(Practice) Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. The fastest growing economy between 1870 and 1979 was a. the United Kingdom. b. the United States. c. Japan. d. Brazil. ____ 2. Faster economic growth in the United States may lead to the serious macroeconomic problem of higher a. levels of unemployment. b. federal budget deficits. c. levels of inflation. d. levels of poverty. ____ 3. Which of the following groups would be most optimistic about the effects of economic growth? a. Environmentalists b. Psychologists c. Economists d. All would be similar in their views ____ 4. The shortfall between actual real GDP and potential GDP a. decreases as the unemployment rate rises. b. increases as the unemployment rate rises. c. increases as the employment rate rises. d. decreases as the labor force increases. ____ 5. When some firms fail because their output is not demanded by society, workers may suffer a. structural unemployment. b. frictional unemployment. c. seasonal unemployment. d. cyclical unemployment. ____ 6. Technological change or the effects of automation cause a. structural unemployment. b. frictional unemployment. c. seasonal unemployment. d. cyclical unemployment. ____ 7. The unemployment rate that many economists believe represents full employment is a. 0 percent. b. 0-4 percent. c. 4-6 percent. d. 6-8 percent. e. 8-10 percent ____ 8. Which of the following groups would most likely be harmed by inflation? a. workers b. borrowers c. debtors d. retirees
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____ 9. If you as a lender want an increase in purchasing power of 4 percent from making a loan and you set the nominal interest rate at 9 percent, then your a. real rate of interest is 13 percent. b. expected rate of inflation is 5 percent. c. expected rate of inflation is 13 percent. d. real rate of interest is 36 percent. ____ 10. The rate of interest written on a contract between a borrower and a lender is the a. nominal interest rate. b. real interest rate. c. implied interest rate.
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This homework help was uploaded on 12/02/2007 for the course ECON 1120 taught by Professor Wissink during the Spring '05 term at Cornell University (Engineering School).

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Practice Exam 2 - Macro-exam2-Winter2007(Practice Multiple Choice Identify the letter of the choice that best completes the statement or answers

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