If the nominal interest rate i n = 8% and the expected rate of inflation r e = 4
ID: 1103964 • Letter: I
Question
If the nominal interest rate in = 8% and the expected rate of inflation re = 4%, then the real interest rate ir is
a. 2% b. 3% c. 4% d. 5% e. 6%
If the nominal interest rate in = 10% and the real interest rate ir = 5%, then the expected rate of inflation re is
a. 2% b. 3% c. 4% d. 5% e. 6%
There are 130 million workers in the labor force; the unemployment rate is 5%. There are ____ million of unemployed workers.
a. 3 b. 6.5 c. 9.86 d. 11.5 e. 45.6
There are 20 million workers in the labor force, 3 million are unemployed; the unemployment rate is
a. 12% b. 13% c. 14% d. 15% e. 16%
There are 10 million unemployed in the economy; the unemployment rate is 20%. There are ____ million workers in the labor force.
a. 30 b. 40 c. 50 d. 60 e. 70
If 5 million unemployed in question 30 get discouraged and stop looking for work, the unemployment rate is.
a. 2% b. 3% c. 4% d. 10% e. 11.11%
Let GDP = $11 trillion, C = $8 trillion, I = $1 trillion, G = $2 trillion and X = $2 trillion. The value of imports is $____ trillion.
a. 1 b. 2 c. 3 d. 4 e. 5
Let GDP = $10 trillion, C = $7 trillion, I = $1 trillion, G = $2 trillion and M = $2 trillion. The value of exports is $____ trillion.
a. 1 b. 2 c. 3 d. 4 e. 5
Inflation is defined as
a)Increase in the price of commodities.
b)Expansion of the consumer basket.
c)Increase in price of assets.
d)Increase in the price level.
Disinflation is
a)Deflation.
b)Particularly strong inflation.
c)Decrease in the rate of inflation.
d)None of the above is correct.
Deflation
a)Helps the economy because consumers enjoy rising real wages.
b)Helps the economy because companies have lower costs.
c)Is harmful because it erodes profit of companies.
d)Does not matter because money is neutral.
let S = $2 trillion, I = $2 trillion, G = $3 trillion, T = $2 trillion and M = $2 trillion. The value of exports X is $____ trillion.
a) $1 trillion.
b)$0 trillion.
c)$1 trillion.
d)$2 trillion.
Explanation / Answer
then the real interest rate ir is=8%-4%=4%
then the expected rate of inflation re is=10%-5%=5%
unemployed workers=130*5%=6.5 million
the unemployment rate is=3/20=15%
workers in the labor force=10/20%=50 million
If 5 million unemployed in question 30 get discouraged and stop looking for work, the unemployment rate is
=(10-5)/(50-5)=11.11%
value of imports is=-(11-8-1-2-2)=2 million
The value of exports is=-(10-7-1-2-2)=2 million
the above are the answer
we do only 4 parts of a question, however, I have done all parts as those were short and similar type. You need to ask remaining questions as new question.