mid2reviewsu08 - Mid2 Review Summer08 1. If the number of...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Page 1 Mid2 Review Summer08 1. If the number of employed workers equals 200 million and the number of unemployed workers equals 20 million, the unemployment rate equals _____ percent (rounded to the nearest percent). A) 0 B) 9 C) 10 D) 20 2. If the fraction of employed workers who lose their jobs each month (the rate of job separation) is 0.01 and the fraction of the unemployed who find a job each month is 0.09 (the rate of job findings), then the natural rate of unemployment is: A) 1 percent. B) 9 percent. C) 10 percent. D) about 11 percent. 3. 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: A) 0.08. B) 0.125. C) 0.22. D) 0.435. Use the following to answer questions 4-5: Exhibit: Shift in Aggregate Demand
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
4. (Exhibit: Shift in Aggregate Demand) In this graph, initially the economy is at point E, with price P 0 and output Y . Aggregate demand is given by curve AD 0 , and SRAS and LRAS represent, respectively, short-run and long-run aggregate supply. Now assume that the aggregate demand curve shifts so that it is represented by AD 1 . The economy moves first to point ______ and then, in the long run, to point ______. A) A; D B) D; A C) C; B D) B; C 5. (Exhibit: Shift in Aggregate Demand) Assume that the economy is initially at point A with aggregate demand given by AD 2 . A shift in the aggregate demand curve to AD 0 could be the result of either a(n) ______ in the money supply or a(n) ______ in velocity. A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease Use the following to answer questions 6-7: Exhibit: Supply Shock 6. (Exhibit: Supply Shock) In this graph, assume that the economy starts at point A and there is a favorable supply shock that does not last forever. In this situation, point ______ represents short-run equilibrium and point ______ represents long-run equilibrium. A) B; C
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/17/2009 for the course ECO 121212 taught by Professor Smith during the Spring '09 term at Culver-Stockton.

Page1 / 8

mid2reviewsu08 - Mid2 Review Summer08 1. If the number of...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online