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Use the table to answer the question that follows. Wages received by employees $15 trillion Bonuses received by employees $6 trillion Rent on land $12trillion Dividends earned by stockholders $8 trillion Prots earned by rms $19 trillion Interest received on capital $7 trillion Net income from abroad $13 trillion Calculate the GDP of the country according to the income approach. (2 points) 0 The GDP of the country is $80 trillion. O The GDP of the country is $67 trillion. O The GDP of the country is $65 trillion. O The GDP of the country is $61 trillion. O The GDP of the country is $59 trillion. If the CPI for a given year is 170 and the price of a basket of goods is $40 in the base year, what is the price of the basket in the given year? (2 points) In 2020, the real gross domestic product was $20 trillion and the GDP deflator was 110. Based on this, nominal GDP must have been (2 points) O $18 trillion $20 trillion $22 trillion O $31 trillion $42 trillionIf the government of a country instituted a policy that led to an unexpected decrease in consumer prices, which of the following groups would inherently benefit? (2 points) O People whose incomes are automatically adjusted with inflation People on fixed incomes O Borrowers of fixed interest rates O Borrowers of variable interest rates O Businesses that had taken out large capital loansAn economy's structural unemployment rate is 2 percent. its frictional unemployment rate is 4 percent. and its cyclical unemployment rate is 3 percent. Based on this data. its natural unemployment rate is and its actual unemployment rate is . (2 points) 0 5 percent; 6 percent 0 6 percent; 9 percent 0 7 percent; 9 percent 0 9 percent; 7 percent 0 9 percent; 6 percent Use the graph to answer the question that follows. Real GDP Potential E $3 trillion $2.9 trillion Actual $2.5 trillion Time At what output is the economy operating at the natural rate of unemployment? (2 points) $2.5 trillion $2.9 trillion O $3 trillion Both at $2.5 trillion and $2.9 trillion O Both at $3 trillion and $2.9 trillionWhich of the following is true regarding the circular flow model used to explain the GDP? (2 points) There is a flow of factors of production from households to firms, and of goods from firms to households, in the factor market. O There is a flow of goods from households to firms, and of goods from firms to households, in the factor market. O There is flow of factors of production from households to firms, and of factor payments from firms to households, in the factor market. O There is flow of expenditure from households to firms, and of factor payments from firms to households, in the product market. O There is flow of factors of production from households to firms, and of factor payments from firms to households, in the product market.A country's unemployment rate is extraordinarily low and ination is beginning to rise sharply. Its real GDP growth is still positive but has started to slow down. Which point of the business cycle best describes this economy? (2 points) Contraction 0 Potential and real GDP are equal 0 Cyclical unemployment is greater than the NRU From the following data given by the Bureau of Labor Statistics, calculate the total number of persons who are counted in a labor force of a country. (2 points) Institutionalized population 5 million Stay-at-home parents 12 million Employed individuals 22 million Unemployed individuals 9 million Military workers 7 million Under age 16 population 13 million Retired individuals 1 1 million 0 31 million 0 22 million 0 36 million Mary was red from the car factory where she used to work and was replaced by machines, and Frank quit hisjob voluntarily and is in search of a new one. Which types of unemployment will these two individuals be categorized in? (2 points) 0 Marycyclical unemployment; Frankfrictional unemployment O Marystructural unemployment; Frankcyclical unemployment O Marydiscouraged unemployment; Frankcyclical unemployment O Marystructural unemployment; Frankfrictional unemployment O Maryfrictional unemployment; Frankdiscouraged unemployment The following data is taken from a survey by the Bureau of Labor Statistics: Unemployed individuals not looking for work 9 million Individuals employed full time Individuals employed part time Self-employed individuals Unemployed individuals Based on the above data, what is the unemployment rate for the population of the country? (2 points) 37 million 11 million 12 million 15 million Nominal GDP fails to take account of , and real GDP still does not measure . (2 points) 0 changes in business inventories; household consumption 0 ination; non-market transactions 0 exports; imports O imports; government spending on infrastructure O capital investments; goods produced in the country and sold overseas Under which scenario will the actual rate of unemployment be higher than the natural rate of unemployment? (2 points) 0 Recession in the business cycle 0 Replacement of human labor by machinery 0 Aggregate demand in the economy increases 0 Decrease in skilled workers 0 Fewer workers seeking better paying jobs Which of the following goods would be directly counted as part of a country's GDP? (2 points) 0 The change in business inventories from the previous year 0 A stimulus check from the government to households 0 The market value of tutoring services freely provided by a non-prot O The aggregate total of childcare services provided by older siblings O The sales of American companies from factories located outside the United States In an economy, if the real GDP is $50 billion and the GDP deator is 150. what would be the value of the total output in the economy at the current market prices? (2 points) 0 $50 billion 0 $75 billion 0 $3 billion 0 $7,500 billion 0 $100 billion Which of the following explains the redistribution effect of unexpected deation? (2 points) 0 There is a transfer of wealth from creditors to debtors because the money paid back will now have a higher value. 0 There is a transfer of wealth from debtors to creditors because the money paid back will now have a higher value. 0 There is a transfer of wealth from creditors to debtors because the money paid back will now have a lower value. 0 There is a transfer of wealth from debtors to creditors because the money paid back will now have a lower value. 0 There is a transfer of wealth from creditors to debtors because the money paid back will now have a lower value. Use the data table to answer the question that follows. Year Nominal GDP GDP Deflator 2008 $50,000 200 2009 $55,000 220 Based on the data above, which of the following must have occurred from 2008 to 2009? (2 points) O Real GDP decreased by 20 percent. O Real GDP decreased by 10 percent. O Real GDP increased by 20 percent. O Real GDP increased by 10 percent. O Real GDP did not change.The CPI will be when there is in the quality of a good and its price remains the same. (2 points) 0 understated; decline 0 overstated; no change 0 overstated; decline 0 overstated; improvement 0 understated; no change Which of the following explains why the unemployment rate could be misleading? (2 points) 0 It does not consider discouraged workers. and hence it is understated. 0 It considers discouraged workers, and hence it is overstated. 0 It considers part-timers as employed, and hence it is understated. 0 It does not consider those who were laid off due to recession, and hence it is understated. 0 It considers part-timers as unemployed, and hence it is understated. If the CPI in Year 1 is 120 and in Year 2 is 130, then what impact will this have on the price level and cost of living for individuals? (2 points) 0 Price level will increase, and the cost of living for individuals will also increase. 0 Price level and the cost of living for individuals will remain the same. 0 Price level will decrease, and the cost of living for individuals will also decrease. 0 Price level will remain the same, but the cost of living for individuals will increase. 0 Price level will decrease, but the cost of living of individuals will increase. Assume that only two goods, A and B, are produced in an economy. In the base year, 5 units of A are produced for a price of $4, and 5 units of B are produced for a price of $6. And in a given year, 5 units of A are produced for a price of $5, and 5 units of B are produced for a price of $9. What is the CPI for the given year? (2 points) Assume that a country has a high GDP and also one of the worst life expectancy rates in the world. Which limitation of the GDP is highlighted in this scenario? (2 points) 0 The GDP does not measure household contributions. 0 The GDP does not include sale of illegal contraband. O The GDP does not include government aid. 0 The GDP does not include net receipts from abroad. 0 The GDP does not measure standard of living. At the current equilibrium real GDP: there is a recessionary output gap. Which of the following must be true? (2 points) 0 There is no cyclical unemployment. O The economy is expanding. O The economy is at full employment. 0 The actual unemployment rate is higher than the natural rate. 0 There is ination that is higher than expected