1.Individuals who have stoppedlooking for work because they could not find adequate childcare are not countedas unemployed in the traditional unemployment statistics.True/False
2.In the long run,an increase inaggregate demand will:
a.increase output but leave thelevel of prices unchanged.
b.increase prices but leave thelevel of output unchanged.
c.increase both prices and output.
d.leave both output and pricesunchanged.
3.The change in the purchasing powerof money will affect aggregate demand.This concepts is closely related to akey principle of economics.Which one?
a.The principle of opportunity cost.
b.The real-nominal principle.
c.The principle of diminishingreturns.
d.The principle of voluntaryexchange.
e.The marginal principle.
4.The accelerator theory emphasizes the role of:
a.consumption in speeding up the growth of income.
b.the multiplier of government spending in the growthof income.
c.actual growth in output on aggregate spending.
d.expected growth in real GDP on investment spending.
5 The model in which a downturn in real GDP leads to asharp fall in investment,which further reduces GDP through the multiplier,isknown as the ________ model.
A.multiplier-accelerator B.multiplier
C.Keynesian D.accelerator
6.Suppose you have $200 and the inflation rate is 3%.In order to earn a real return of $10 on your investment,the nominal interestrate must be:
A.10%.B.5%.C.8%.D.3%.