You have created a virtual economy on your computer to try to mimic the interesting models we have done in this class. You and your friends are keeping employment statistics in the exact same way as the BLS, and you have the following data at your disposal: last month there were 100 million people in your virtual reality world, 60 percent were in the labor force, and 12 million people were classified as unemployed. What is the unemployment rate in your virtual reality world?

Taxable Household Income Taxes Paid $10,000 $800 $15,000 $1,200 $20,000 $1,600 $25,000 $2,000   Using the data in the table above, this country uses a                      tax system:

If a nation doubles its GDP per capita in 14 years, approximately what is its annual growth rate?

If an increase in government spending of $100 million causes an increase in aggregate spending of less than $100 million, we call this phenomenon:

Use the following equations for Aggregate Demand and Short Run Aggregate Supply to answer this question.

  According to the tax rates shown in the figure above, an individual who earns $100,000 in taxable income will pay income tax of:

In the New Keynesian model, where prices are slow to adjust, a negative shock to consumer confidence will lead to                    in the short run.

Marquez, a laid-off steel worker, has recently moved to Florida because he is looking to take classes and obtain new skills in computer programming while he looks for a job in IT. Which of the following best describes Marquez’s employment situation?

Which is the MOST effective fiscal policy to fight a recession if people react to uncertainty by saving all additional money that they earn or receive?

Which program(s) would be more directed at helping overcome frictional unemployment?