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USE THIS INFORMATION FOR THE NEXT QUESTION. Year Nominal GDP Price Index (1985 = 100, base year) Real GDP 1990 360 billion 120 2000 450 billion 125 16. Between 1990 and 2000, Real GDP A. increased by $60 billion. B. increased by $100 billion. C. increased by $18 billion. D. increased by $810 billion. 17. The purpose of a price index is: A. to convert values expressed in current dollars to values expressed in constant dollars. B. to convert-values expressed in constant dollars to values express in current dollars. C. to calculate the UE rate in any economy. D. to calculate the number of employed people in the economy. 18. In the early 2000s, workers in Buffalo, NY who shoveled grain from rail cars into grain bins lost their jobs due to the innovation of automated shovels that could do the work more efficiently. This is an example of unemployment. A. cyclical B. frictional C. seasonal D. structural20. TRUE or FALSE. Due to poor weather conditions in California and chronic drought, the supply of strawberries decreases, which leads to an increase in the price of strawberries. This alone is a signal of inflation in the economic system. 21. How much would the real rate of interest be if the nominal interest rate equaled 12 % and the expected rate of inflation was 4 percent? A. 12% + 4% = 16% B. 12% + 4% = 3% C. 4% - 12% = negative 8% D. 12% - 4% = 8% 22. Who is included in the number of unemployed people in the US? A. the stay-at-home parent who manages the house and takes care of the children B. a music junkie who gave up looking for a job long time ago C. a full-time student a CMCC who really wants to work but cannot find a job because of her class schedule, the car that won't start on a regular basis and an eight o'clock class D. your friend, who graduated from CMCC with a degree in business and has enrolled in or signed up with the local job agency 23. TRUE or FALSE During a period of hyperinflation, such as that suffered by post WWI Germany and Bolivia in the mid-1980s or more recently, Venezuela, people tend to hold money rather than goods because money has increased in value. 24. Which of the following people would be in favour of inflation? A. students with a student loan B. the employee of a local shop who receives a non-adjusted salary C. creditors D. your grandmother who keeps money under her mattress