ECON 2101 - test 2 practice - Copy (2)

# ECON 2101 - test 2 practice - Copy (2) - 1 If the annual...

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1. If the annual inflation rate is 5 percent a year, about how many years will it take for the price level to double? a) 10 years b) 16 years c) 14 years d) 12 years 2. If the nominal interest rate is 5 percent and the real interest rate is 2 percent, then the inflation premium is: 3. Transfer payments such as Social Security or unemployment compensation are counted in the calculation of GDP. a) True b) False 4. If real GDP falls from one period to another, we can conclude that: 5. Which is included in the expenditures approach to GDP? 6. 7. Kevin has lost his job in an automobile plant because of the use of robots for welding on the assembly line. The type of unemployment Kevin is faced with is: a) Structural b) Cyclical c) Frictional d) Natural 8. For a nation's real GDP per capita to rise during a year: 1

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9. A nation has a population of 260 million people. Of these, 60 million are retired, in the military, in institutions, or under 16 years old. There are 188 million who are employed and 12 million who are unemployed. What is the unemployment rate? 10. A GDP price index one year was 110, and the next year it was 115. What is the approximate percentage change in the price level from one year to the next as measured by that index? Answer the question(s) based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year.
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