Assuming the total population is 100 million, the civilian labor force is 50 million, and 45 million workers are employed, the unemployment rate is Multiple Choice 02:29:48 O 10 percent. O 5 percent. O 55 percent. O 9 percent.In which ofthe following cases would real income rise? Multiple Choice r\\ | 2 02393 | R. J 0 Nominal income rises by 8 percent. and the price level rises by i percent. Nominal income rises by 2 percent. and the price level remains unchanged. 0 Nominal income falls by 4 percent. and the price level falls by 2 percent. 0 Real income will rise in all of these cases. 3 If investment increases by $5 billion and the economy's MPC is 0.75, the aggregate demand curve will shift Multiple Choice \"\\ r | 2 0223.15 | \\ J O rightward by $20 billion at each price level. 0 rightward by $5 billion at each price level. 0 leftward by $20 billion at each price level. leftward by $15 billion at each price level. 4 You are given the following information about the economy: the nominal interest rate = 10 percent, and the real rate of interest = 4 percent. The inflation premium is Multiple Choice 02:29:00 O 6 percent. O 14 percent. O 10 percent. O 4 percent.5 AS 1 ASo G H 02-28:47 Price Level E - ADo AD O A B 3 C Real Domestic Output Refer to the diagram. A shift of the aggregate demand curve from AD, to ADo might be caused by a(n) Multiple Choice O decrease in aggregate supply. O decrease in the amount of output supplied. O increase in investment spending. O decrease in net export spending.The aggregate supply curve Multiple Choice '\\ K, | 2 09:23:30 | K. j O is explained by the interest rate, realbalances, and foreign purchases effects. 0 gets steeper as the economy moves from the top of the curve to the bottom of the curve. 0 shows the various amounts of real output that businesses will produce at each price level. is downslopihg because real purchasing power increases as the price level falls. 7 The factors that affect the amounts that consumers, businesses, government, and foreigners wish to purchase at each price level are the Multiple Choice 02-28:18 O real-balances, interest-rate, and foreign purchases effects. O determinants of aggregate supply. O determinants of aggregate demand. O sole determinants of the equilibrium price level and the equilibrium real output.A negative GDP gap can be caused by either a decrease in aggregate demand or a decrease in aggregate supply. 8 True or False 02:28:01 True FalseSuppose that lenders want to receive a real rate of interest of 5 percent and that they expect inflation to remain steady at 2 percent in the coming years. Based on this, lenders should charge a nominal interest rate of 9 Multiple Choice X 02-27:45 O 2 percent. O 3 percent O 5 percent. O 7 percent.Recurring upswings arid downswings in an economy's real GDP overtime are called 10 Multiple Choice | 5'2 0227:32I \\' J O recessions. 0 business cycles. 0 output yoyos. 0 total product oscillations. A decrease in aggregate demand in the short run will reduce 11 Multiple Choice If 8 \\| 0:27:12 K. J 0 both real output and the price level. the price level and increase the real domestic output 0 the real domestic output and have no effect on the price level. the price level and have no effect on real domestic output. 12 Which of the following would most likely shift the aggregate demand curve to the right? Multiple Choice X 02-27:00 O an increase in stock prices that increases consumer wealth O increased fear that a recession will cause workers to lose their jobs O an increase in personal income tax rates O a reduction in household borrowing because of tighter lending practicesFull-time Employed 30 13 Part-time Employed 25 Unemployed 15 Discouraged Workers 5 Members of Underground Economy 6 02-26:46 Consumer Price Index 110 Refer to the given information about a hypothetical economy. The unemployment rate is Multiple Choice O 18.8 percent. O 12.5 percent. O 16.7 percent. O 25 percent.The aggregate demand curve 14 Multiple Choice '\\ f | 8 02:26:31 | \\. J O is upsloping because a higher price level is necessary to make production profitable as production costs rise. 0 is downsloping because production costs decline as real output increases. 0 shows the amount of expenditures required to induce the production of each possible level of real output. shows the amount of real output that will be purchased at each possible price level. 15 A college graduate using the summer following graduation to search for a job would best be classified as Multiple Choice 02-26:17 O not officially a member of the labor force. O structurally unemployed. O cyclically unemployed. O frictionally unemployed.The unemployment rate is the 16 Multiple Choice 02:25:52 O ratio of unemployed to employed workers. O number of employed workers minus the number of workers who are not in the labor force. O percentage of the labor force that is unemployed. O percentage of the total population that is unemployed.A93 17 AS1 * 02-25:38 AS2 Price Level O Real Domestic Output, GDP In the diagram, a shift from AS3 to AS2 might be caused by an increase in Multiple Choice O business taxes and government regulation. O the prices of imported resources. O the prices of domestic resources.18 An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labor to produce its total output of 640 units. Each unit of capital costs $10; each unit of raw materials, $4; and each unit of labor, $3. If the per-unit price of raw materials rises from $4 to $8 and all else remains constant, the aggregate 02-25:22 Multiple Choice O supply curve would shift to the left. O supply curve would shift to the right. O demand curve would shift to the left. O demand curve would shift to the right.19 Alex works in his own home as a homemaker and full-time caretaker of his children. Officially, he is Multiple Choice 02:25:02 O unemployed. O employed. O not in the labor force. O in the labor force.Inflation is undesirable because it 20 Multiple Choice .\\ r' | 2 0:24:45 | '\\.. J O arbitrarily redistributes real income and wealth. O invariably leads to hyperinflation. 0 usually is accompanied by declining real GDP. reduces everyone's standard of living