EXAM 1_sample

EXAM 1_sample - 1. If frictional unemployment=2%,...

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1. If frictional unemployment=2%, structural unemployment=2%, seasonal unemployment=1%, and cyclical unemployment=4% what is the natural rate of unemployment? a. 4% b. 5% c. 9% d. 6% 2. Refer to Figure 7-2. The economy's potential level of output on the graph a. cannot be determined with this information, only actual output can be found b. is rising c. exceeds $8 trillion d. is less than $8 trillion e. equals $8 trillion 3. The four main categories of resources are a. labor, money, capital, and inputs b. capital, land, raw materials, and entrepreneurship c. raw materials, money, labor, and capital d. capital, labor, land and natural resources, and entrepreneurship e. human capital, physical capital, labor, and natural resources 4. Suppose that Nadira's nominal wage rate was $20 per hour in 2005, the base year for the CPI. If the CPI in 2008 was 120.0 and her nominal wage had risen to $22 per hour, what was her real wage in 2008? a. $16.67 b. $18.33 c. $22.00 d. $26.40 e. her real wage for 2003 cannot be determined with the information given 5. Suppose the nominal interest rate charged is 5 percent and the expected inflation rate is 2 percent. Which of the following is the expected real interest rate? a. 2 percent
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b. 5 percent c. 7 percent d. -3 percent e. 3 percent 6. Raushan has just taken a fixed-rate loan and agreed to pay a nominal interest rate of 6 percent. If the inflation rate during the first year of the loan was 2 percent, her real interest rate that first year was a. 6 percent b. 8 percent c. 4 percent d. 12 percent e. impossible to calculate without additional information 7. Which of the following would be counted in GDP? a.
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This note was uploaded on 06/07/2011 for the course ECON 3 taught by Professor Dd during the Spring '11 term at Alvin CC.

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EXAM 1_sample - 1. If frictional unemployment=2%,...

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