Test1banswerkey

Test1banswerkey - ECON 420 -002, 004 Test 1B On my honor, I...

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

View Full Document Right Arrow Icon
ECON 420 -002, 004 Test 1B On my honor, I have neither given nor received unauthorized aid on this quiz: ______________ Name:____________________________________________ Section: _______________ 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
SECTION I: (3 points each) 1. If an economy has a 7% growth rate of money supply, a 2% growth rate of real GDP, and a real interest rate of 3%, the nominal interest rate will be a. 2% b. 5% c. 8% d. 10% 2. When money prices are used to facilitate comparisons of value, money performs the following function: a. Medium of Exchange b. Unit of Account c. Store of Value d. None of the above 3. Which of the following is NOT a cause of structural unemployment? a. Time taken to find a job. b.Minimum Wage laws. c. Trade Unions and Collective Bargaining. d.Presence of an “Efficiency Wage” 4. Which of the following will hurt a BORROWER? a. Expected inflation rate is 3% but actual inflation rate is 5%. b. Expected inflation rate is 5% but actual inflation rate is 3%. c. Expected inflation rate is 3% and actual inflation rate is 3%. d. Expected inflation rate is 10% and actual inflation rate is 10%. 5. If purchasing power parity holds, the real exchange rate will be a. 0 b. 1 c. 0.5 d. 2 6. A technology improvement in giving haircuts will a. Shift labor demand curve for barbers to the right and increase real wage. b. Shift labor demand curve for barbers to the left and decrease real wage. c. Shift labor demand curve for barbers to the right and decrease real wage. d. Shift labor demand curve for barbers to the left and increase real wage. 7.
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.

Page1 / 6

Test1banswerkey - ECON 420 -002, 004 Test 1B On my honor, I...

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