Macroeconomics – Test Code 193 (Grade 9)

In 1931, President Herbert Hoover was paid a salary of $75,000. Government statistics show a consumer price index of 15.2 for 1931 and 237 for 2015. President Hoover’s 1931 salary was equivalent to a 2015 salary of about

• $4,965

• $1,169,408

• $1,057,894

• $16,080,001

Which headline is more closely related to a microeconomics study than to a macroeconomics one?

• Real GDP falls by 0.4 percent in the third quarter.

• Inflation was 2.4 percent last year.

• The price of gasoline rises due to rising oil prices.

• Unemployment rate falls from 7.5% to 7.3%.

Kamila was absent from work because of a strep throat (sick). Brian is not working but is available for work. Who does the Bureau of Labor Statistics count as “unemployed”?

• Brian but not Kamila

• Both Kamila and Brian

• Neither Kamila nor Brian

• Kamila but not Brian

An increase in the minimum wage above the equilibrium wage

• reduces structural unemployment

• reduces frictional unemployment

• increases structural unemployment

• increases frictional unemployment

• $100 to GDP

• $300 to GDP

• $400 to GDP

• $3,812

• $7,795

• $2,024

• $2,011

If the reserve ratio is 4 percent, then the money multiplier is

• 0.04

• 4

• 2.5

• 25

Assume a typical consumer buys 30 gallons of gas and 15 gallons of milk each month. Using the table of monthly prices and taking September as the base month (CPI = 100), what is the consumer price index for October? Month prices per gallon: September—gas 3.50, milk 3.50; October—gas 3.85, milk 3.52; November—gas 4.25, milk 3.58.

• 93.58

• 106.86

• 86.92

• 92.88

Suppose that the adult population in Atlantis is 140 million. If 90 million people are employed and 10 million are unemployed, then

• 80 million are not in the labor force

• 40 million are not in the labor force

• 130 million are in the labor force

• 40 million are in the labor force