Suppose the Bureau of Labor Statistics reports that the noninstitutional civilian population is 250 million. Of those, 150 million are employed and 5 million are unemployed. Of the 150 million employed, 5 million would like to be working twice as many hours and of the 250 million, 5 million have given up the search for work. The unemployment rate reported by the BLS would be __________, while if
the BLS counted the discouraged workers as unemployed the unemployment rate would be __________.
a. 6.25%; 3.2%
b. 2%; 6.25%
c. 6.25%; 2%
d. 3.2%; 6.25%
e. 6%; 6.25%
C
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Assume that the required reserve ratio is 10 percent. A bank has deposits of $1,000,000 and cash of $500,000 in the Fed. The bank has demand deposits equal to $1,500,000. Given this information, the bank has excess reserves of
A) $850,000. B) $350,000. C) $1,350,000. D) None of the above.
The monopolist can earn long-run profits even if it is not insulated with barriers to entry
Indicate whether the statement is true or false
A politician running for political office does not speak in general terms, does not try to move to the middle of the political spectrum, and does not take polls, therefore it follows that
A) the median voter model is wrong. B) rational ignorance does not exist. C) the free-rider problem does not exist. D) voter turnout is likely to rise. E) none of the above
To obtain a given real rate of return, lenders must charge a ________ nominal interest rate in the face of decreasing inflation.
A. regular B. constant C. lower D. higher