6. Which of the following is not included in the calculation of GDP? a. Joey's electronics manufactures CD players that individuals install b. Susy's Leather Goods manufactures leather pieces that are sold to manufacturers who use them to produce handbags and wallets. C. Harry's Ice Cream Shoppe sells ice cream cones at the beach. d. Monica's Hair Salon sells haircuts and manicures to the residents of Macroland. e. Beth purchases maternity clothing from a store. 7. The natural rate of unemployment is a. A country's unemployment rate during a recession b. A country's unemployment rate during an expansion C. The sum of frictional and cyclical unemployment d. The sum of frictional and structural unemployment e. Always equal to zero 8. Which of the following statements is true? a. Structural unemployment refers to the unemployment that occurs when there are more employers demanding labor than there are employees supplying labor. b. Structural unemployment refers to a situation in which the market wage rate is lower than the equilibrium wage rate. C. Structural unemployment occurs when there is a surplus of labor at the current wage rate. d. When there is structural unemployment, frictional unemployment equals zero. e. When there is no structural unemployment, the natural rate of unemployment is zero. 9. The natural rate is unemployment is a. Equal to zero, but only if there are no discouraged workers. b. Structural unemployment minus underemployment. C. Always lower than the reported unemployment rate. d. Always equal to zero. e. Frictional unemployment plus structural unemployment. 10. Mary expects the inflation rate to be 5%, and she is willing to pay a real interest rate of 3%. Joe expects the inflation rate to be 5%, and he is willing to lend money if he receives a real interest rate of 3%. If the actual inflation rate is 6%, and the loan contract specifies a nominal interest rate of 8%, then a. Joe is glad he lent out funds even though his real interest rate has fallen. b. Joe is sorry he lent out funds since his real interest rate is now 9%. c. Mary is glad she borrowed the funds because her real interest rate has fallen. d. Mary is sorry she borrowed funds since her real interest rate is now 9%. e. Mary is sorry she borrowed funds since her real interest rate is now 8%