Exhibit 12-2 Unemployment categories
Category# ofIndividuals
Frictional unemployment 20
Structural unemployment 35
Cyclical unemployment 60
Discouraged workers 5
Underemployed workers 10
Fully employed workers410
Population900
Consider an economy made up of 100 people, 50 of whom hold jobs, 10 of whom are looking for work, and 15 of whom are retired. The unemployment rate is approximately:
A. 10 percent.
B. 12 percent.
C. 17 percent.
D. 20 percent.
Answer: C
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Actual reserves are equal to
A) required reserves plus fractional deposits. B) excess reserves plus liabilities. C) minimum balances plus desired reserves. D) government securities plus cash in the bank's vault. E) desired reserves plus excess reserves.
A rise in price almost always:
a. leads to an increase in the quantity supplied of that good or service. b. leads to a decrease in the quantity supplied of that good or service. c. has no effect on the quantity supplied of that good or service. d. leads to an increase in the quantity demanded of that good or service.
In the twentieth century what policies helped Taiwan, Singapore, and South Korea grow faster than more developed nations?
a. investment in natural resources b. low levels of saving and high levels of consumption c. investment in human resources and technology d. lax enforcement of property rights
The real exchange rate is:
A. the best measurement we have to get a sense of whether purchasing power parity holds or not. B. a useful proximity of how far your dollars will go in another country. C. difficult to calculate because it relies on very different "typical" baskets of goods. D. All of these statements are true.