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econ quiz ch. 20-22

Terms in this set (10)

The natural rate of unemployment is the
a. unemployment rate that would prevail with zero inflation
b. rate associates with the highest possible level of GDP
c. amount of unemployment that the economy normally experiences
d. difference between the long-run and short-run unemployment rates
amount of unemployment that the economy normally experiences
cyclical unemployment refers to
a. short-run fluctuations around the natural rate of unemployment
b. the portion of unemployment created by wages set above the equilibrium level.
c. changes in unemployment due to changes in the natural rate of unemployment
d. the portion fo employment created by job search
a. short-run fluctuations around the natural rate of unemployment
Who of the following is not included in the Bureau of Labor Statistics' "employed" category?
a. those who worked as unpaid workers in a family member's business
b. those waiting to be recalled to a job from which they had been laid off
c. those who worked in their own business
d. those who were temporarily absent from work because of vacation
b. those waiting to be recalled to a job from which they had been laid off
A bank which must hold 100 percent reserves opens in an economy that had no banks and a currency of $150. If customers deposit $50 into the bank, what is the value of the money supply?
a. $150
b. $100
c. $200
d. $50
a. $150
a bank has an 8 percent reserve requirement, $10,000 in deposits, and has loaned out all it can, given the reserve requirement
a. it has $1,250 in reserves and $8,750 in loans
b. it has $80 in reserves and $9,920 in loans
c. it has $800 in reserves and $9,200 in loans
d. it has $8,000 in reserves and $2,000 in loans
c. it has $800 in reserves and $9,200 in loans
the discount rate is
a. the interest rate the Fed charges banks
b. the interest rate banks receive on reserve deposits with the Fed.
c. the interest rate that banks charge on overnight loans to other banks
d. one divided by the difference between one and the reserve ratio
a. the interest rate the Fed charges banks
the federal funds rate is the
a. percentage of deposits that banks mist hold as reserves
b. interest rate at which the federal reserve makes short-term loans to banks
c. percentage of face value that the federal reserve is willing to pay for treasury securities.
d. interest rate at which banks lend reserves to each other overnight
d. interest rate at which banks lend reserves to each other overnight
as associate professor of physics gets a $200 a month raise. with her new monthly salary she can buy more goods and services than she could buy last year.
a. her real and nominal salary have fallen
b. he real salary has fallen and her nominal salary has risen
c. her real and nominal salary have risen
d. her real salary has risen and her nominal salary has fallen
c. her real and nominal salary have risen
the principle of monetary neutrality implies that an increase in the money supply will increase
a. real GDP, but not the price level.
b. real GDP and the price level
c. neither the price level nor real GDP
d. the price level, but not real GDP
d. the price level, but not real GDP
which of the following is included in both M1 and M2
a. currency, demand deposits, and other checkable deposits
b. traveler's checks, demand deposits, and savings deposits
c. currency and money market mutual funds
d. currency, demand deposits, and savings deposits
a. currency, demand deposits, and other checkable deposits
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