In describing the economic setting in the real goods market, which of the following economic measures is the most helpful?
a. Current real exchange rate
b. Current unemployment rate and labor force participation rate
c. Annual inflation rate during the past year
d. Current nominal exchange rate
e. Percentage change in nominal GDP during the past year
.B
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Investment banks differ from commercial banks in the fact that
A) investment banks work only with wealthy customers while commercial banks work only with private firms. B) commercial banks sell stocks on behalf of their customers while investment banks just finance loans. C) commercial banks issue stocks and bonds while investment banks do not. D) investment banks help other financial institutions and governments engage in financial markets while commercial banks work with individuals. E) commercial banks service the needs of local governments while investment banks work with the federal government.
If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the labor force is
A) 1000. B) 1100. C) 1400. D) 1500.
Use the above figure. Which graph depicts a normal good?
A) A B) B C) C D) D
Rational expectations involve: a. forecasts that are technically correct
b. forecasts that, while not necessarily correct, are the best that can be made given the available data. c. forecasts that accurately predict the short-term future for wages and prices. d. forecasts made by economists based on sophisticated econometric models.