economics questions

e Suppose that the rms' markup over cost (m) is 10% and that the wage determination equation when P =P is W = P(1-u) where u = unemployment rate (assume for simplicity, that the catch-all variable 2 does not enter wage setting). What is the natural rate of unemployment? (please answer in the form 0.xxxx (which 4 digital places), e.g. 0.1234 representing 12.34%) Answer: Suppose the monetary base (of stock of high-powered money, H) is 23027, that the proportion of money people want to hold as currency is 0.3 and that the amount of reserves banks hold per E of deposit accounts (reserve ratio) is 0.8. What is the overall supply of money in this economy? Answe r: Suppose the mark-up of goods prices over marginal costs (m) is 0.05 (i.e. 5%) and that the wage-setting equation is W = P (1-u) where u is the unemployment rate. What is the real wage (W/P) as determined by the price-setting equation? (Present your result rounded to three decimal places) Answer:Label the following statement as true or false: The natural rate of unemployment is unaffected by policy changes. Select one: 0 True 0 False Which of the following conditions is most likely to coincide with the existence of a liquidity trap? Select one: Q a. the real interest rate is positive b. individuals prefer to hold only money and not bonds c. ination is constant d. inflation is zero 0000 e. inflation is rising Which of the following generally occurs when a central bank pursues an expansionary monetary policy? Select one: Q a. none of the above b. the central bank sells bonds and the interest rate decreases. c. the central bank purchases bonds and the interest rate decreases. d. the central bank purchases bonds and the interest rate increases. 0000 e. the central bank sells bonds and the interest rate increases, Which of the following generally occurs when a central bank pursues an expansionary monetary policy? Select one: Q a. a leftward shift in the money demand curve and a leftward shift in the money supply curve b. a rightward shift in the money demand curve and a leftward shift in the money supply curve c. a leftward shift in the money demand curve and a rightward shift in the money supply curve d. a rightward shift in the money demand curve and a rightward shift in the money supply curve 0000 e. none of the above