(04.01–04.07 HC) For all graphs, be sure to correctly and completely label all axes and curves and use arrows to indicate the direction of any shifts.Assume that an economy is in a short-run macroeconomic equilibrium and experiences a negative demand shock. What will happen to real output and the price level as a result? Explain. Using a correctly labeled graph of the money market, illustrate the impact of the negative demand shock. What will happen to the price of previously issued bonds? Explain. What is one policy action that the central bank could take to offset the change in the nominal interest rate from part (b)? Assume a limited reserves system. Assume that the required reserve ratio is 5 percent. If the central bank wants to increase the money supply by $80 billion, what is the specific open-market operation (type and minimum value) that the central bank needs to conduct?

(02.07 MC) In which year did the economy above most likely have an actual unemployment rate equal to the sum of its frictional and structural unemployment rate?

(02.06 MC) If the real GDP and nominal GDP are $200 billion and $620 billion respectively, what is the value of the GDP deflator?

(02.06 MC) Use the data table to answer the question that follows. Year Nominal GDP GDP Deflator 1 $640 billion 160 2 $1050 billion 175 By how much did the value of output, adjusted for inflation, change from Year 1 to Year 2?

(04.02 MC) Suppose banks decided to charge a 17% interest rate, assuming an expected inflation rate of 5%. However, they ended up charging an interest rate of 14%, with a real interest rate of 7%. Which of the following statements holds true for the given scenario?

(04.06, 04.07 HC)Question refers to excerpts below.”Still, though a slaveholder, I freely acknowledge my obligation as a man; and I am bound to treat humanely the fellow creatures whom God has entrusted to my charge…It is certainly in the interest of all, and I am convinced it is the desire of every one of us, to treat our slaves with proper kindness.”Source: Letter from former South Carolina governor James Henry Hammond, 1845″Standing with God and the crushed and bleeding slave on this occasion, I will, in the name of humanity which is outraged, in the name of Liberty which is fettered, in the name of the constitution and Bible, which are disregarded, and trampled upon, dare to call in question and denounce…slavery ‘the great sin and shame of America’!”Source: Fredrick Douglass, from speech titled “The Meaning of July Fourth for the Negro,” 1852Which of the following groups would be likely to support the point of view of Frederick Douglass in the excerpt?

(03.09 LC) Which of the following is the result of automatic fiscal stabilizers that help an economy recover from inflationary periods?

(01.01–01.03, 05.06 HC) Assume that Athens and the Sparta use equal resources to produce consumer and capital goods, as illustrated in the table below showing maximum possible production figures. Country Capital Goods Consumer Goods Athens 70 units 210 units Sparta 50 units 100 units Draw a fully labeled production possibility curve for Athens. Place capital goods on the vertical axis and consumer goods on the horizontal axis. Assume constant opportunity cost. On your graph from part (a), label an inefficient point of production I, an efficient point of production E, and an unattainable point of production U. Which country has the comparative advantage in the production of consumer goods? Explain. If Athens shifted from producing 50 units of capital goods and 60 units of consumer goods to producing 60 units of capital goods and 30 units of consumer goods, what would be the impact on its economic growth in the long run? Based on the data table, what range of capital goods could be traded for 60 units of consumer goods that would be mutually beneficial?

(02.03 MC) Jane was fired from her job as a waitress at a restaurant due to a recession. How will Jane be categorized when computing the unemployment rate?

(02.04 HC) Assume that only two goods, A and B, are produced in an economy. In the base year, 5 units of A are produced for a price of $4, and 5 units of B are produced for a price of $6. And in a given year, 5 units of A are produced for a price of $5, and 5 units of B are produced for a price of $9. What is the CPI for the given year?