B. depreciation and indirect business taxes.

262. The unemployment rate is 10 percent. The rate of job separation is 5 percent. How high does the rate of job finding have to be to keep the unemployment rate constant?
B. 45 percent

263. The unemployment resulting from wage rigidity and job rationing is called
C. structural unemployment.

264. The unemployment caused by unions and by the threat of unionization is an instance of
D. conflict between insiders and outsiders.

265. The unemployment caused by the time that it takes to match workers and jobs is called
A. frictional unemployment.

266 The law of one price applied to the international marketplace is called
D. purchasing-power parity.

267. The Solow growth model assumes that the production function exhibits
B. constant returns to scale.

268. The Golden Rule level of capital accumulation is defined as the level of the capital stock that achieves a steady state with the
C. highest level of consumption.

269. The steady state level of income
B. the current level of income in the country.

270. The marginal product of capital (MPK) is 1/3; the marginal product of labor (MPL) is 3. Capital is increased by 30; the labor force is increased by 10. How much does output increase?
D. 40

271. The change in the capital stock is equal to
B. investment - depreciation.

272. The key difference between the IS-LM model and the Mundell-Fleming Model is that the
B. Mundell-Fleming model assumes a small open economy.

273. The Mundell-Fleming model predicts that, in Y - e space, an appreciation of the exchange rate will cause the IS* curve to
D. remain unchanged.

274. The Mundell-Fleming model predicts that, in Y - e space, an appreciation of the exchange rate will cause the LM* curve to
D. remain unchanged.

275. The consumer price index (CPI)

A. measures the price of a fixed basket of goods and services.

276. Unions may cause unemployment if
B. insiders force real wages higher than the market-clearing level.

277. Under a system of floating exchange rates, a monetary contraction by the central bank would cause the exchange rate to
A. rise.

278. Under a system of fixed exchange rates, an import restriction on foreign goods would cause net exports and the level of income to
A. rise.

279. Under a system of fixed exchange rates
B. only fiscal policy can affect income..

280. Under a system of floating exchange rates
A. only monetary policy can affect income..

281. Using the framework of the Solow growth model, the U.S. level of capital is presently
C. below the Golden Rule level.

282. Unemployment insurance
A. frictional unemployment.

283. Which of the following statements describes the difference between nominal and real GDP?

B. Real GDP is measured using constant base-year prices; nominal GDP is measured using current prices.

284. Which of the following is not included in GDP?

C. The value of automobile services enjoyed by car owners

285.Which of the following is a flow variable?

C. Your monthly consumption of hamburgers

286. Which of the following is not a stock variable?

D. Inventory investment

287. Which of the following statements about the CPI and the GDP deflator is true?

Date: 2015-12-11; view: 973