Assume that the equilibrium level of Y (or real GDP) is $10 trillion, the actual unemployment rate is 4.0%, and the natural unemployment rate is 5%. Okun's Law tells us that we should increase Y by 1.6% O increase Y by 2.0% decrease Y by 1.6% decrease Y by 2.0%

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Question 5 The economy's MPN is given by MPN=100-N0.5 where N is the level of employment. How much is the aggregate labor demand when the real wage is w 20? 120 64,000 O 6400 80 Question 6 The ECON 103 professors have two hundred midterm exams to grade. They offer to hire you to help them grading, paying you twice the amount you would normally receive (because fow students are willing to work during the term), You take the job. This would be an example of the substitution effect being stronger than the income effect. the income effect being stronger than the substitution effect. the substitution effect being equal to the income effect. a pure income effect.

Figure 10.3 P AS2 AS: P2 P1 AD: Y2 Y1 Which of the following cannot be true in Figure 10.3? O Worker's wages have decreased O The stock of capital in the economy has been decreased due to a hurricane O The government imposed restrictions on coal fired power plants O Stagflationary pressures have increased inflation and unemployment in the economy

P₁ P₁ 0 X3 Q3 X₁ X₂ Qp Real Output Graph A AS, Q₂ P₂ P₁ P3 X3 ASLR Y₁ X1 Z₁ Qp Real Output Graph B AS₂ AS, AS, In Graph A above, an increase in the price level from P₁ to P2 will lead to: O Higher product prices, a rise in profits and a fall in the unemployment rate O Lower product prices, a decline in profits, and a fall in the unemployment rate O Higher product prices, a rise in profits, and a rise in the unemployment rate O Lower product prices, a decline in profits, and a rise in the unemployment rate

2 apter 16 Problems i 2 https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https... eBook Mc Graw Hill Type here to search % O Saved Ms. Spielvogel was paid $400 a week in 1987, the base year. By 1995 she was earning $900 a week. If the consumer price index was at 180 in 1995, how much were Ms. Spielvogel's real wages that year, and by what percentage had they changed? Real wages (1995) = $ Percentage change = ************ A Q C 91°F G A Help

What is the quantity of real GDP produced if the real wage rate is at the full-employment equilibrium level? If the real wage rate is at the full-employment equilibrium level, real GDP is O A. equal to potential GDP, which is efficient but is not the most that can be produced. O B. equal to potential GDP, which is the most that can be produced O C. at its highest attainable and efficient level O D. at or below potential GDP depending on the level of employment Click to select your answer.

Suppose the economy is self-regulating and the (actual) unemployment rate is less than the natural unemployment rate. This means that the economy is producing a level of output  a. above its naturel level and will eventually cut back on output  b. below its natural level and will eventually increase output  c. below its natural level but no forces exist to automatically increase output  d. above its natural level and institutional constraints will automatically be reduced so as  to allow the economy to continue producing this level  e. none of the above

Suppose you read in the Wal Street Journal that, during the fourth quarter of 2020, the U.S. economy expanded at the fastest rate in two decades. It follows that one would expect in the unemployment rate and. in real GDP during the fourth quarter of 2020. O a. a decrease; a decrease O b. an'increase; an increase O c. a decrease; an increase O d. an increase; a decrease Next page

If the population of a country is 1,000,000 people, its labor force consists of 500,000, and 40,000 people are unemployed, the unemployment rate is: O 8.0 percent. O 7.4 percent. O 50.0 percent. O 4.0 percent.