Test1_sample - 1. If frictional unemployment=2%, structural...

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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% 3. Changes in government spending or taxes designed to stimulate the economy are examples of a. fiscal policy b. monetary policy c. supply management policy d. classical policy e. regulatory policy 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 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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Test1_sample - 1. If frictional unemployment=2%, structural...

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