ex3 Question 1

Which of the following scenario shows the cost of unexpected deflation?

AConsumers now have to pay more to buy goods.

BSpending in the economy increases.

CWorkers now receive higher real wages than before.

DBorrowers are better off than lenders.

EEmployment in the economy increases.

Question 2

An 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 ________.

A5 percent; 6 percent

B6 percent; 9 percent

C7 percent; 9 percent

D9 percent; 7 percent

E9 percent; 6 percent

Question 3

Economists conclude that Country A is overheated and the output is about to fall. Which of the business cycle phases is referred here?

AExpansion

BRecession

CTrough

DPeak

ERecovery

Question 4

Michaela was recently fired from her factory job because her company's inventories have sharply increased for six consecutive months. Michaela is most likely

Aa marginally attached worker

Ba discouraged worker

Cfrictionally unemployed

Dstructurally unemployed

Ecyclically unemployed

Question 5

Which of the following categories are the losers of a higher than expected increase in the price level?

ADebtors, creditors, and savers

BCreditors and savers

CDebtors and creditors

DSavers only

EDebtors and savers

Question 6

Use the table to answer the question that follows.

Wages received by employees $15 trillion Bonuses received by employees $6 trillion Rent on land $12 trillion Dividends earned by stockholders $8 trillion Profits earned by firms $19 trillion Interest received on capital $7 trillion Net income from abroad $13 trillion