Macro Final

When a union raises the wage above the equilibrium level...

both the quantity of labor supplied and unemployment rise.

Gold coins

commodity money

The deviation of unemployment from its natural rate is called

cyclical unemployment

If the Fed sells the government bonds to the public, then reserves

decrease and the money supply decreases

When the price level increases, the real value of people's money holdings

falls, so they buy less

Paper dollars

fiat money

A firm may pay efficiency wages in an attempt to

improve productivity by reducing turnover

When taxes decrease, consumption

increases as shown by a shift of the aggregate demand curve to the right.

Commodity money

money with intrinsic value

Fiat money

money without intrinsic value that is used as money because of government decree

The effect of an increase in the price level on the aggregate-demand curve is represented by a

movement to the left along a given aggregate-demand curve

The wealth effect, interest-rate effect, and exchange-rate effect are all explanations for

the slope of the aggregate-demand curve

If the reserve ratio is 12.5 percent, then $1,000 of additional reserves can create up to

$8,000 worth of new money

Dilbert's Incorporated produced 6,000,000 units of software in 2010. At the start of 2011, the boss raised employment from 10,000 total annual hours to 14,000 annual hours and production was 7,000,000 units. These numbers indicate that productivity...

...fell by about 16.7%

In the long run, a higher saving rate...

...increases the level of productivity

The Monetary Policy of Tazi is controlled by the country's central bank known as the Bank of Tazi. The local unit of currency is the taz. Aggregate banking statistics show that collectively the banks of Tazi hold 300 million tazes of required reserves, 75 million tazes if excess reserves, have issued 7,500 million tazes of deposits, and hold 225 million tazes of Tazian Treasury bonds. Tazians prefer to use only demand deposits and so all money is on deposit at the bank. Suppose the Bank of Tazi purchased 50 million tazes of Tazian Treasury Bonds from the banks. Suppose also that both the reserve requirement and the percentage of deposits held as excess reserves stay the same. By how much does the money supply change?

1,000 million tazes

Miller's Dairy produces 960 gallons of milk per day. Each milker at the dairy works 8 hours per day and produces the same number of gallons of milk per hour. If the Dairy's productivity is 12 gallons of milk per hour of labor, then how many milkers does the shop employ?

10

In June 2009, the Bureau of Labor Statistics reported an adult population of 234.9 million, a labor force of 154 million, and employment of 141.6 million. Based on these numbers the unemployment rate was...

12.4/154

In June 2009, the Bureau of Labor Statistics reported an adult population of 234.9 million, a labor force of 154 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was...

154/234.9

The Monetary Policy of Tazi is controlled by the country's central bank known as the Bank of Tazi. The local unit of currency is the taz. Aggregate banking statistics show that collectively the banks of Tazi hold 300 million tazes of required reserves, 75 million tazes if excess reserves, have issued 7,500 million tazes of deposits, and hold 225 million tazes of Tazian Treasury bonds. Tazians prefer to use only demand deposits and so all money is on deposit at the bank. Suppose the Bank of Tazi loaned the banks of Tazi 10 million tazes. Suppose also that both the reserve requirement and the percentage of deposits held as excess reserves stay the same. By how much would the money supply change?

200 million tazes

Last year real GDP per person in the imaginary nation of Olympus was 4,250. The year before it was 4,100. By about what percentage did Olympian real GDP per person grow during the period?

3.7 percent

The Monetary Policy of Tazi is controlled by the country's central bank known as the Bank of Tazi. The local unit of currency is the taz. Aggregate banking statistics show that collectively the banks of Tazi hold 300 million tazes of required reserves, 75 million tazes if excess reserves, have issued 7,500 million tazes of deposits, and hold 225 million tazes of Tazian Treasury bonds. Tazians prefer to use only demand deposits and so all money is on deposit at the bank. Assume that banks desire to continue holding the same ratio of excess reserves to deposits. What is the reserve requirement and the reserve ratio for Tazian Banks?

4% and 5%

The Monetary Policy of Tazi is controlled by the country's central bank known as the Bank of Tazi. The local unit of currency is the taz. Aggregate banking statistics show that collectively the banks of Tazi hold 300 million tazes of required reserves, 75 million tazes if excess reserves, have issued 7,500 million tazes of deposits, and hold 225 million tazes of Tazian Treasury bonds. Tazians prefer to use only demand deposits and so all money is on deposit at the bank. Assuming the only other thing Tazian banks have on their balance sheets is loans, what is the value of existing loans made by Tazian banks?

6,900 million tazes

The short-run effects of an increase in the expected price level include

a lower level of output and a higher price level