c. 100 d. 45.9 29. Market Basket ' 2005 2015 m A 40 $5 $7 B 30 $6 $8 in the above table you are given consumption on Jasmin's consumption for 2005 and 2015. Using 2005 as the base year, the price index for 2015 equals _ a. 0.75 b. 135.842 c. 73.007 d. 87.50 30. Suppose that goods X and Y are substitutes and the price of good Y falls. We would then expect a. an increase in the demand for both good X and good Y b. an increase in the quantity demanded of good Y and a decrease in the demand for good X c. the quantity of good Y demanded to increase and the demand for good X to increase also. d. an increase in the demand for good X and a decrease in the quantity of good Y demanded 31. The unemployment rate when there is full employment is called a. the natural rate of unemployment b. zero unemployment c. cyclical unemployment d. seasonal unemployment CD 32. IF someone enters the labor market today and it takes some time for he/she to nd a job. Until such time he/she nds a job he/she is a. seasonal unemployed b. cyclical unemployed c. frictional unemployed d. structural unemployed 33. Which of the following decreases aggregate supply (real GDP) a. an increase in training and education b. discoveries of new raw materials c. a decrease in labor supply d. an increase in competition 34. In the classical model, high unemployment due to a change in aggregate demand a. will return to its normal level quickly as wages adjust b. never exists because unemployment can never deviate from its normal level c. will persist if due to supply shocks but if not due to demand shocks d. can persist for an indefinite period of time 35. Who among the following was a classical economist? a. David Ricardo b. Adam Smith c. A. C. Pigou d. all of the above 36. A reduction in the amount of oil (a resource) will lead to cause which of the following? a. a reduction in output and a reduction in the price level b. a reduction in output and an increase in the price level c. an increase in_ the price level and no change in output d. a reduction in output with no change in the price level @