Multiple choice questions: 1. Which of the following equations is correct? A. Labor force = Adult Population
Question:
Multiple choice questions:
1. Which of the following equations is correct?
A. Labor force = Adult Population – Labor not in the Labor force
B. Labor force = Adult Population – Number of unemployed
C. Labor force = Number of employed – Number of unemployed
D. Labor force = Adult population – Number of unemployed
2. A rise in the rate of inflation, given a fixed nominal interest rate will cause:
A. The nominal interest rate to rise
B. The nominal interest rate to fall
C. The real interest rate to rise
D. The real interest rate to fall
3. In which situation is the real interest rate highest?
A. The nominal interest rate is 25% and the inflation rate 30%.
B. The nominal interest rate is 2% and the inflation rate 1%.
C. The nominal interest rate is 8% and the inflation rate 5%.
D. The nominal interest rate is 11% and the inflation rate 9%.
4. "I'd rather have a 1% pay cut when prices fall by 3% than a 5% pay increase when the rate of inflation is 8%." This is an example of:
A. Irrationality
B. Rising real wage
C. Deflation always being better than inflation
D. Excessive aggregate demandCornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen