Macroeconomic

Assume that Ms Sawyer's salary is 75000 up from 70000 last year while the CPI 140 this year up from 150 last year this mean that Ms Sawyer's real income has

New salary ÷ new cpi

• Increased

• Decreased

• Stayed the same

• It depends on which year is the base year

Assume that Ms. Sawyer's salary is $75,000, up from $70,000 last year, while the CPI is 165 this year, up from 150 last year. This means that Ms.Sawyer's real income has

• decreased

• increased

• stayed the same

• It depends on which year is the base year

Unemployment that arises as a result of the time it takes for unemployed people to locate a job utilizing their transferable skills is called _________ unemployment.

• structural

• cyclical

• Frictional

• Natural

Suppose that the price indexs in 1999 was 29.3 and your salary was 1 million suppose in 2015 the consumer price price index will be 218.342 what salary will you have to earn in 2015 in order to equal your 1999 real income? 1M X 218.342 ÷ 29.3

• 0.87 million

• 8.66 million

• 6.44 million

• 7.45 million

A market basket is made up of three goods 10X 12Y and 18z the prices in the base year 1.20 2.10 3.25$ in the current year are 1.44$ 2.23$ and 3.88$ what are the approximate consumer price index in the current year?

• 103

• 111

• 116

• 110

• 96

Jones lost his job in industry A but he has skills that can be transferred to industry B ( which is currently hiring ) Smith lost a job in industry C or to any another industry Jones is _________ unemployed and Smith is __________ unemployed

• Structurally, frictionally

• Structurally, structurally

• frictionally, frictionally

• frictionally, structurally

Consumption spending is divided into three parts durable goods and non-durable goods and services

• TRUE

• FALSE

The base year is not always the year in which prices were the lowest

• TRUE

• FALSE

Nominal GDP is a better measure of output than real GDP

• TRUE

• FALSE

If the unemployment rate drops then it necessarily follows that some of the people who were once unemployed are now employed

• TRUE

• FALSE