Q54. Recall the Application about the productivity of large infrastructure investments to answer the following question.

According to theApplication, what massive investment project did China recently embarkon?

A.

stem cell research

B.

bullet trains

C.

irrigation

D.

reforestation

Q55. When firms increase capitalstock, the productivity of their workers increases.

True

False

Q56. The school of thought that believes that wages and prices adjust quickly to bring the economy back to full employment is called the

A.

neoclassical school.

B.

Post-Keynesian school.

C.

Keynesian school.

D.

classical school.

Q57. Which of the following creates difficulties in making comparisons of real GDP acrossnations?

A.

Each nation has a different population.

B.

Relative prices differ sharply across countries.

C.

Nations produce different goods and services.

D.

Nations often have different languages.

Q58. In June2012, the U.S. labor force consisted of142,415,000 employed and12,749,000 unemployed. The U.S. unemployment rate for June 2012 was about

A.

7.4 percent.

B.

8.2 percent.

C.

9.0 percent.

D.

11.2 percent.

Q60. If you negotiated a salary based on an anticipated inflation rate of 4percent, and the actual inflation rate turned out to be 6 percent

A.

your employer would have gained at your expense.

B.

the purchasing power of your wages will notchange, since purchasing power is based on your nominal wage.

C.

the purchasing power of your real wages would be more than you anticipated.

D.

your real wage willincrease, but your nominal wage will decrease.