- Description
ECO 372T Wk 2 – Apply: Quiz
Assuming the total population is 100 million, the civilian labor force is 50 million, and 45 million workers are employed, the unemployment rate is
Multiple Choice
- 10 percent.
- 5 percent.
- 55 percent.
- 9 percent.
With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 6 percent. But if the rate of inflation was anticipated to be 5 percent, the bank would most likely charge the firm an annual interest rate of
Multiple Choice
- 11 percent.
- 1 percent.
- 5 percent.
- 6 percent.
With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 8 percent. But if the rate of inflation was anticipated to be 5 percent, the bank would most likely charge the firm an annual interest rate of
Multiple Choice
- 13 percent.
- 3 percent.
- 5 percent.
- 8 percent.
If the number of worker-hours in an economy is 100 and its labor productivity is $7 of output per worker-hour, the economy’s real GDP
Multiple Choice
- is $700.
- is $13.
- is $7,000.
- cannot be calculated.
A nation’s real GDP was $250 billion in Year 1 and $258 billion in Year 2. Its population was 120 million in Year 1 and 125 million in Year 2. What is its real GDP per capita in Year 2?
Multiple Choice
- $2,064 per person
- $206 per person
- $20,640 per person
- $133 per person
A nation’s real GDP was $250 billion in Year 1 and $260 billion in Year 2. Its population was 120 million in Year 1 and 100 million in Year 2. What is its real GDP per capita in Year 2?
Multiple Choice
- $2,600 per person
- $260 per person
- $26,000 per person
- $160 per person
If a nation’s real GDP is growing by 5 percent per year, its real GDP will double in approximately
Multiple Choice
- 14 years.
- 22 years.
- 20 years.
- 8 years.
If a nation’s real GDP is growing by 2.5 percent per year, its real GDP will double in approximately
Multiple Choice
- 28 years.
- 7 years.
- 25 years.
- 22 years.
Year Alta (Real GDP) Zorn (Real GDP) Alta (Population) Zorn (Population)
1 $3,000 $150,000 200 500
2 3,090 152,000 202 505
3 3,100 154,000 210 508
Refer to the table. Between years 1 and 2, real GDP grew by __________ percent in Alta.
Multiple Choice
- 3
- 6
- 5
- 9
Year Alta (Real GDP) Zorn (Real GDP) Alta (Population) Zorn (Population)
1 $4,000 $150,000 200 500
2 4,320 152,000 202 505
3 4,400 154,000 210 508
Refer to the table. Between years 1 and 2, real GDP grew by __________ percent in Alta.
Multiple Choice
- 8
- 4
- 5
- 10
Potential Real GDP $200 billion
Natural Rate of Unemployment 6%
Actual Rate of Unemployment 9%
Refer to the accompanying data, which is for a specific year in a hypothetical economy for which Okun’s law is applicable. The amount of output being forgone by the economy is
Multiple Choice
- $12 billion.
- $18 billion.
- $218 billion.
- $6 billion.
If actual GDP is $460 billion and there is a positive GDP gap of $40 billion, potential GDP is
Multiple Choice
- $420 billion.
- $500 billion.
- $880 billion.
- $40 billion.
If actual GDP is $460 billion and there is a positive GDP gap of $10 billion, potential GDP is
Multiple Choice
- $450 billion.
- $470 billion.
- $910 billion.
- $10 billion.
A nation’s average annual real GDP growth rate is 5 percent. Based on the rule of 70, the approximate number of years that it would take for this nation’s real GDP to double is
Multiple Choice
- 14.
- 10.
- 75.
- 350.
A nation’s average annual real GDP growth rate is 1.4 percent. Based on the rule of 70, the approximate number of years that it would take for this nation’s real GDP to double is
Multiple Choice
- 50.
- 28.
- 14.
- 98.
If the natural rate of unemployment is 5 percent and the actual unemployment rate is 8 percent, then Okun’s law indicates that the GDP gap is
Multiple Choice
- 6 percent.
- 3 percent.
- 5 percent.
- 13 percent.
Suppose total output (real GDP) is $4,000 and labor productivity is $10. We can conclude that the number of worker hours must be
Multiple Choice
- 400.
- 4,000.
- 40.
- 800.
Suppose total output (real GDP) is $4,000 and labor productivity is $8. We can conclude that the number of worker hours must be
Multiple Choice
- 500.
- 3,200.
- 50.
- 32.
Assume the natural rate of unemployment in the U.S. economy is 4 percent and the actual rate of unemployment is 7 percent. According to Okun’s law, the GDP gap as a percentage of potential GDP is
Multiple Choice
- 6 percent.
- 11 percent.
- 4 percent.
- 3 percent.
If actual GDP is $700 billion and there is a negative GDP gap of $30 billion, potential GDP is
Multiple Choice
- $730 billion.
- $670 billion.
- $1,370 billion.
- $30 billion.
If actual GDP is $500 billion and there is a negative GDP gap of $15 billion, potential GDP is
Multiple Choice
- $515 billion.
- $485 billion.
- $985 billion.
- $15 billion.
A nation’s real GDP was $250 billion in Year 1 and $255 billion in Year 2. Its population was 120 million in Year 1 and 125 million in Year 2. What is its real GDP growth rate in Year 2?
Multiple Choice
- 2 percent
- 5 percent
- 1.6 percent
- 8 percent
A nation’s real GDP was $200 billion in Year 1 and $220 billion in Year 2. Its population was 120 million in Year 1 and 125 million in Year 2. What is its real GDP growth rate in Year 2?
Multiple Choice
- 10 percent
- 20 percent
- 8.9 percent
- 6 percent
Suppose total output (real GDP) is $2,000 and worker-hours are 10,000. We can conclude that labor productivity is
Multiple Choice
- $0.20.
- $20,000.
- $2.
- $0.10.
Suppose total output (real GDP) is $2,000 and worker-hours are 800. We can conclude that labor productivity is
Multiple Choice
- $2.50.
- $16,000.
- $25.
- $0.80.
If 20,000 worker-hours produced a total output of $800,000 in an economy, then the labor productivity is
Multiple Choice
- $40 per worker-hour.
- $80 per worker-hour.
- $16 per worker-hour.
- $160 per worker-hour.
- $20 per worker-hour.
If 40,000 worker-hours produced a total output of $800,000 in an economy, then the labor productivity is
Multiple Choice
- $20 per worker-hour.
- $80 per worker-hour.
- $32 per worker-hour.
- $320 per worker-hour.
- $40 per worker-hour.
You are given the following information about the economy: the nominal interest rate = 10 percent, and the real rate of interest = 3 percent. The inflation premium is
Multiple Choice
- 7 percent.
- 13 percent.
- 10 percent.
- 3 percent.
Assume that an economy has 500 workers, each working 1,000 hours per year. If the average real output per worker-hour is $20, then total output, or real GDP, will be
rev: 10_12_2020_QC_CS-234699
Multiple Choice
- $5 million.
- $20 million.
- $25 million.
- $10 million.
If the natural rate of unemployment was 4 percent, the current unemployment rate was 8.5 percent, and potential GDP was $4,000 billion, then according to Okun’s law the economy would have sacrificed
Multiple Choice
- $360 billion in output not produced.
- $850 billion in output not produced.
- $400 billion in output not produced.
- $160 billion in output not produced.
If the rate of inflation is 14 percent per year, the price level will double in about
Multiple Choice
- 5 years.
- 14 years.
- 7 years.
- 28 years.
If the rate of inflation is 5 percent per year, the price level will double in about
Multiple Choice
- 14 years.
- 5 years.
- 18 years.
- 10 years.
You are given the following information about the economy: the nominal interest rate = 8 percent, and the real rate of interest = 5 percent. The inflation premium is
Multiple Choice
- 3 percent.
- 13 percent.
- 8 percent.
- 5 percent.