Rocion Section At multiple choice questions (2.5 points rach) D) dollar value of what a worker could earn in another job 2) In years with inflation, nominal GDP increases __ real GDP. A) faster than B) slower than D) sometimes futer, sumetimes slower, and sometimes at the same rate as 3) A movement along the aggregate production function is the result of a change in A) the quantit of labor. B) technology. C)capital. D) interest rates. 4) An advance in technology will A) not shift the production function but will lead to a movement down along the production function. B) shift the production function downward. C) not shift the production function but will lead to a movement up along the production function. D) shift the production function upward. 5) The working-age population can be divided into two groups A) people in the labor force and people looking for work. B) people in the labor force and people with a job. C) people looking for work and those in the armed forces. D) people in the labor force and people who are not in the labor force. 6) During a recession.people drop out of the labor force because they are unable to find a job.All else the same,this A) increases the official U-3 unemployment rate. B) decreases the official U-3 unemployment rate. C) does not change the official U-3 unemployment rate. D) increases the official U-3 unemployment rate and the labor force participation rate. 7) If last year's price level was 100 and this year's price level is 114, over the year the inflation rate has been A) 14 percent. B) 114 percent. C) 12 percent D) 100 percent. 8) Which of the following is FALSE about saving? A) Saving adds to wealth. B) Income left after paying taxes can either be consumed or saved. C) Saving equals wealth minus consumption expenditures. D) Saving is the source of funds used to finance investment. 9) The real interest rate A) can never be negative. B) is approximately equal to the nominal interest rate plus the inflation rate. SEMRA 11:00) SEMRA BOGA (Croup) (Taesday 11:00) approximately equal to the nominal interest rate minus the D) is positively related in the inflation rate. 10) As the __ interest rate increases, the quantity of loanable fo __ Aireal increases B) real increases c nominal; increases D) nominal; decreases 11) The term "crowding out"relates to the decrease in B) the real interest rate from a government budget deficit. C) private investment from a government budget deficit. D) saving from an increase in disposable income. 13) According to the Ricardo-Barro effect A) government deficits raise the real interest rate. B) taxpayers fail to foresee that government deficits imply higher future taxes. C) households increase their personal saving when governments run budget deficits. D) government budget deficits increase households' expected future disposable income. 13) The labor force participation rate A) does not change when the real wage rate changes. B) decreases as the real wage rate rises. C) increases as the real wage rate increases. D) has an inverse effect of the supply of labor. 14) People expect an inflation rate of 5 percent and the real interest rate is positive.Consequently the nominal interest rate will be A) more than 5 percent. B) 5 percent. C) less than 5 percent. D) Without more information it is impossible to tell if the nominal interest rate will be more than, less than or equal to 5 percent. 15) Which of the following is NOT considered to be in the labor force? A) a student who works part-time B) a person who is not working but who has tried to find a jo in the past week C) a person who is waiting to start a new job in the next 30 days D)person who is not working and who has not tried to fin job 16) In September 2014 the official U-3 unemployment dropped from 6.1 percent to 5.9 percent. This change c have been caused by A) unemployed workers giving up looking for a job. B) part-time workers getting a full-time job. C) full-time workers becoming part-time workers. D) workers who had previously given up looking for a j starting to look again.