QUESTION 3 If inflation is fully expected by both borrowers and lenders, then we should expect nominal rates to be less than the expected inflation rate. the real rates to be higher than nominal rates of interest. real rates to be equal to nominal rates of interest. real rates to be lower than nominal rates of interest QUESTION 5 If a borrower arbitrarily gains purchasing power as a result of a particular loan agreement then actual inflation must have been greater than expected inflation. the real interest rate must have been greater than the actual inflation rate. actual inflation must have been equal to the expected inflation rate. actual inflation must have been less than expected inflation QUESTION 7 of 1,350 people surveyed by the Bureau of Labor Statistics, 318 are not working. The status of those not working is as follows: 122 full- time students; 29 discouraged workers; 18 in long-term-care facilities: 21 seeking employment and age 16-or-older, 50 retirees; 63 under age 16; 15 working in the underground economy and not looking for a "real" job. Eight of those working were under 16 years of According to the data in above table, the number of those classified officially as "in the labor force" is 1,350. age. 1,032 1,045, 1,053 1,011 QUESTION 9 Which of the following is included in the investment spending component of the aggregate demand? Sandra buys a 75-year-old apartment on Riverside Drive. Maria purchases $100,000 of bonds issued by Canadian government. Sean buys bonds issued by the U.S. Treasury. Marco buys a new building off Santa Monica coast for his startup company. Allen sells the old truck he has used for transporting goods. QUESTION 10 Which of the following statements is true? An economy's output level and the hours of work move in opposite directions. At full employment level of GDP, frictional unemployment will be equal to zero. An economy that is not in a recession will have an unemployment rate equal to zero. At full employment level of GDP, the unemployment rate will be positive