. The total value of goods and services produced within a nation's borders, measured in constant prices refers the (2point)

A) nominal GDP. B) real inflation. C) per capita GDP. D) real GDP

3.Which of the following types of unemployment would best characterize a swimming instructor's unemployment during the winter months? (4 point)

A) structural unemployment B) frictional unemployment C) seasonal unemployment D) cyclical unemployment

4.When there is no deflation or inflation in an economy ( 4 point)

A) prices of all goods change by the same percentage. B) relative prices remain unchanged. C) average prices remain unchanged D) full employment is achieved.

5.Ben's nominal annual income in 2009 was $40,000. If the rate of inflation is constant at 10 percent, in order to keep Ben's real income constant, his nominal income in the year 2010 should be (5point)

A) $50,000. B) $44,000. C) $40,000. D) $36,000.

6. Which of the following is NOT a basic monetary policy tool used by the Fed? ( 2 point)

A) the discount rate B) reserve requirements C) open-market operations D) the income tax rate

7. Suppose the banks in the Federal Reserve System have $400 million in transactions accounts and the reserve requirement is 0.10. Ceteris paribus, if the reserve requirement is decreased to 0.05, then excess reserves will increase by (5point)

A) $1 million. B) $20 million. C) $40 million. D) $2 billion

8. If the Fed wishes to decrease the money supply it can (4 point)

A) raise the discount rate. B) buy bonds on the open market. C) decrease the required reserve ratio. D) decrease the federal funds rate.

9. Which of the following is NOT a monetary policy tool for shifting the aggregate demand curve? ( 4 point)

A) open market operations B) government spending C) the discount rate D) the reserve requirement

10. If a bank does not have enough reserves, it can (4 point)

A) buy bonds on the open market. B) raise the interest rate it charges borrowers. C) borrow reserves from the discount window. D) make more loans.

11. When the Fed makes bonds more or less attractive, it influences the (2 point)

A) open market decision. B) money multiplier. C) portfolio decision. D) reserve decision.

12 .If the Fed buys more bonds from the public, then the money supply will ( 4 point)

A) decrease and the aggregate demand curve will shift to the right. B) increase and the aggregate demand curve will shift to the right. C) increase and the aggregate demand curve will shift to the left. D) decrease and the aggregate demand curve will shift to the left.

13. If the total output for an economy is equal to $750 billion and the total number of labor hours is 20 billion, then labor productivity is equal to (5point)

A)15.00 per hour. B) $20.00 per hour. C) $37.50 per hour. D) $75.00 per hour.