1.Individualswhohavestoppedlookingforworkbecausetheycouldnotfindadequatechildcarearenotcountedasunemployedinthetraditionalunemploymentstatistics.True/False
2.Inthelongrun,anincreaseinaggregatedemandwill:
a.increaseoutputbutleavethelevelofpricesunchanged.
b.increasepricesbutleavethelevelofoutputunchanged.
c.increasebothpricesandoutput.
d.leavebothoutputandpricesunchanged.
3.Thechangeinthepurchasingpowerofmoneywillaffectaggregatedemand.Thisconceptsiscloselyrelatedtoakeyprincipleofeconomics.Whichone?
a.Theprincipleofopportunitycost.
b.Thereal-nominalprinciple.
c.Theprincipleofdiminishingreturns.
d.Theprincipleofvoluntaryexchange.
e.Themarginalprinciple.
4.Theacceleratortheoryemphasizestheroleof:
a.consumptioninspeedingupthegrowthofincome.
b.themultiplierofgovernmentspendinginthegrowthofincome.
c.actualgrowthinoutputonaggregatespending.
d.expectedgrowthinrealGDPoninvestmentspending.
5ThemodelinwhichadownturninrealGDPleadstoasharpfallininvestment,whichfurtherreducesGDPthroughthemultiplier,isknownasthe________model.
A.multiplier-acceleratorB.multiplier
C.KeynesianD.accelerator
6.Supposeyouhave$200andtheinflationrateis3%.Inordertoearnarealreturnof$10onyourinvestment,thenominalinterestratemustbe:
A.10%.B.5%.C.8%.D.3%.
![______fineweatheritis!A.WhatB.HowC.WhataD.Howa[whata,howa]](/UploadFile/wdimg/2008/3775518919/172/4256232762.jpg)
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