Unformatted text preview: 6. Suppose tbattbe CPIis currently400 andwas 100 in 1969. Then accordingtotbe CPLi-llltltodaypurchasesﬂie
same amount ofgoods andservices as a. $25 in 1900'.
b. $60 in 1950'.
c. $40 in 1969.
d. None of the above are correct. 2'. 'I'berewillbestruoturallmemployruentif
a. some wages are below tine equilibrium level b. some wages are kept above the equilibrium level.
c. some people choose not to worlr at the equilibrilnn wage.
d. All ofthe above could be correct. 8. Cyclical Imemployruent refers to
a. bow oiten a worker is likely to be employed dining her lifetime.
b. the relation between the probability ofunemployment and a worker's changing level of
c. year-to-year ﬂuotuations of Imemployroent around its natural rate.
d. long—term trends in unemployment. 9. Velocity in tile country of Aquilouia is always stable. In 2002, the money supply was $100 billion, nominal GDP
was $500 billion, andtbe real interest rate was 3 percent. In 2003,the money supply was $105 billion and real
GDP did not change from its level in 2002. The nominal interest rate in 2003 was approximately
a. 5 percent
b. 3 percent c. 11 percent.
d. lipercent. 10. The inﬂation tax a is a tax on eueryoue who holds money. bl tramfers wealth from the government to householik.
c. is the increase in incorue taxes due to lack of indexation.
d. All ofthe above are correct. 11. In 2002 real GDP in Dceania was 561.0 billion and the population was 2.2 million. In 2001 real GDP was 500.0
billion and the population was 2.0 million. 1What was the approximate growth rate ofreal GDP perperson‘?
a. 12 percent
b. 2 percent
c. 4 percent
d. 10 percent 12. Whenttleruoneyruarketis drawnwiththevalue ofmoneyontbeverticalaais,aniucreaseiuﬂ1epuiceleuel causes ruoyemeuttotiieleft alongthemoney demandcurye.
sbifltotheleftofthe moneydemandcm've. sbiﬂtoﬂierigbtofﬂlemomeydmnandclmm.
movementtotiieﬂght alongthemoney demand curve. P'PF‘F'F' ...
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- Winter '10