Each question welghs equaly and the total will be counted out of 100. Page 8 out

Question

Each question welghs equaly and the total will be counted out of 100. Page 8 out of 17 32) One of the dangers of prolonged unemployment is that the natural rate of unemployment might increase This means that a) The structurally unemployed will become cyelically unemployed b) The cyclically unemployed will become either structurally or frictionally unemployed c) The frictionally unemployed will become either structurally or cyelically unemployed 33) AGel Frictional unemployment is 2% of the labor force, structural unemployment is 3% of the labor force, cyclical unemployment is 4%, what is the natural unemployment rate? a) 3% b) 4% c) 5% d) 6% e)9% Use the information in the table below to calculate the marginal propensity to consume (MPC). Real GDP 10000 34) According to the above table, MPCis a) 0.72 D 0.8 c) 0.88 d) 1 e) None of the above 35) A depreciation of the US dollar benefits Both importers and exporters in the US Importers in the US Exporters in the US What is the Taylor rule? a) A rule that helps predict the inflation rute b) A rule that helps predict money supply c) A rule that helps predict inflation expectations d) A rule that helps predict the federal funds target rate e) A rule that helps predict growth in real GDP 37) What happens to the value of the US dollar if investors believe it will increase in value in the future? aDemand for the US dollar will increase, causing it to appreciate b) Demand for the US dollar will decrease, causing it to appreciate c) Demand for the US dollar will increase, causing it to depreciate d) Demand for the US dollar will decrease, causing it to depreciate

Explanation / Answer

32 answer is b because then cyclic unemployment will become part of natural unemployment

33 3+2=5%

34 total consumption /total income=0.8

35 exporters in us

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