(06.01–06.06 HC) Country X and Country Y are trading partners each with a current account balance of zero. Country X’s currency is the dollar, and Country Y’s currency is the peso. If interest rates in Country X increase, will the immediate consequence be a current account deficit, surplus, or no change for Country X? Explain. Draw a graph of the foreign exchange market for the dollar of Country X. Illustrate the effect of the increase in interest rates in Country X on the value of its dollar compared to the peso of Country Y. Now if Country Y enters a severe recession, what will be the impact on demand for the dollar of Country X? Explain. Based on part (c), what will be the effect on the value of the dollar of Country X compared to the peso of Country Y?

(02.03 MC) Which of the following would explain an increase in the natural rate of unemployment?

(02.03 HC) The following table shows the demographic of a country, as given by the Bureau of Labor Statistics. Individuals under the age of 16 16 million Retired individuals over the age 65 9 million Discouraged workers of age 16 and above 5 million Employed persons of age 16 and above 18 million Unemployed persons of age 16 and above 8 million Based on the above data, what is the labor force participation rate (LFPR) for this country?

(02.04 HC) Assume that only two goods are produced in an economy, A and B. In the base year, 6 units of A are produced at a price of $3 and 5 units of B are produced at a price of $2. And in the given year, 6 units of A are produced at a price of $2 and 5 units of B are produced at a price of $6. What is the CPI for the given year?

(02.07 MC) Use the graph to answer the question that follows.At what output is the economy operating at the natural rate of unemployment?

(01.06 MC) If it is assumed that the market for good Z is in equilibrium and Z is an inferior good, what will be the result following an increase in the average income of consumers?

(02.03 MC) Which of the following individuals is considered “cyclically” unemployed by economists?

(02.07 MC) Use the graph to answer the question that follows.Which point on the business cycle represents a negative output gap in the economy?

(01.05 HC)Use the graph to answer the question that follows.Public DomainThe graph illustrates a change in the market for bicycles. Which statement could explain the graph?

  (04.07 MC) Use the graph to answer the question that follows. The graph shows a change in an economy after the government’s decision to provide tax benefits to businesses in an effort to increase investment. What is the new point of equilibrium in the economy’s loanable funds market?