(02.04 LC) The consumer price index tends to ________ the substitution of lower-priced goods, which has the effect of ________ inflation.

(02.07 MC) Economists conclude that Country A is overheated and the output is about to fall. Which of the business cycle phases is referred here?

(02.04 MC) If the price of a basket of goods in the given year is $56 and the price of the basket of goods in the base year is $70, then what is the consumer price index (CPI) for the given year?

(02.07 MC) In which year did the economy above most likely have an actual unemployment rate equal to the sum of its frictional and structural unemployment rate?

(02.03 MC) An economy’s natural unemployment rate is 7 percent, its frictional unemployment rate is 2 percent, and its actual unemployment rate is 11 percent. Based on this data, its structural unemployment rate is ________, and its cyclical unemployment rate is ________.

(02.03 HC) The following table shows the demographic of a country, as given by the Bureau of Labor Statistics. Individuals under the age of 16 16 million Retired individuals over the age 65 9 million Discouraged workers of age 16 and above 5 million Employed persons of age 16 and above 18 million Unemployed persons of age 16 and above 8 million Based on the above data, what is the labor force participation rate (LFPR) for this country?

(02.03 MC) Which of the following is true about the limitations of the unemployment rate?

(04.01 MC) Following an increase in the rate of interest, which of the following will occur?

(04.07 MC) Use the graph to answer the question that follows.Assume that the loanable funds market is in equilibrium, as shown in the graph. If households become concerned about retirement income and spend less, what will happen in this market for loanable funds?

(03.01–03.09 HC) For all graphs, be sure to correctly and completely label all axes and curves and use arrows to indicate the direction of any shifts.Assume Morocco is currently operating with an unemployment rate six percent above its natural rate of unemployment. Draw a correctly labeled graph of the long-run aggregate supply, short-run aggregate supply, and aggregate demand curves. Label the equilibrium price level PL1 and the equilibrium real output Y1. Label the full-employment level of output YF. Where on a production possibilities curve representing full employment in Morocco would current output be—on, outside, or inside the PPC? What can be assumed about inflation based on the information above? Assume that the output gap is estimated to be $156 billion and the government decides to take action. If the marginal propensity to consume is 0.75, by how much would it need to change government spending to close the gap? Show your work. If instead, government chose to use the income tax to close the output gap rather than changes in spending, calculate the change in tax revenue the government would need to close the gap. Assume the same figures as part (d). What is one possible automatic stabilizer in the economy that would contribute to closing this output gap? Assume that instead of intervening, the government allowed the economy to self-adjust in the long run. On your graph from part (a), illustrate how the economy would self-adjust in the long run. If the GDP deflator is 125 in the year that the output gap is identified, and two years later it is 150, is inflation becoming an issue? Explain, using the numbers provided.