In 15 minutes needed

1. Which of the following would NOT contribute this year's GDP for the US? A) US consumers spend $40 billion on domestically produced new final goods B) The US government distributes $10 million in social security payments C) A foreign country purchases $2 billion worth of newly-produced US exports D) A US firm builds a factory and uses it to expand production 2. Your friend Jorge just told you about his dad, who lost his $80, 000/year job at the auto plant he has worked at for 30 years because his trade is being phased out. Jorge's dad applied for a different job at the same plant but does not feel like he is qualified to get it. You surmise that Jorge's dad's unemployment is: A) frictional. B) cyclical. C) seasonal. D) structural. 3. Which of the following is NOT among the reasons that inflation can have a negative impact? A) Inflation means that prices are rising, so consumers are spending more. 8) Unexpectedly high inflation can redistribute wealth from savers to borrowers. C) Once it has started, stopping inflation can be disastrous for the economy . D) Inflation makes it hard to write contracts and make business decisions. 4. In which of these situations is the real interest rate NEGATIVE? A) The nominal interest rate is 3% and the inflation rate is 4% B) The nominal interest rate is -5% and the inflation rate is -6% C) The nominal interest rate is 2% and the inflation rate is -1% D) The nominal interest rate is 4% and the inflation rate is 4%%