Question 1 The unemployment rate is a fraction whose numerator is the:A. total population.B. number of employed.C. number of unemployed.D. difference between the total population and the number of employed.Question 2 A lender need NOT be penalized by inflation if the:A. long-term rate of inflation is less than the short-term rate of inflation.B. short-term rate of inflation is less than the long-term rate of inflation.C. lender correctly anticipates inflation and increases the nominal interest rate accordingly.D. inflation is unanticipated by both borrower and lender.Question 3 What does NOT occur in a fully employed economy?A. Cyclical unemploymentB. Discouraged workersC. Frictional unemploymentD. Structural unemploymentQuestion 4 The Consumer Price Index measures changes in:A. the money supply.B. all prices.C. the cost of living.D. the cost of consumer credit.
Back