28. Refer to Table 4. If prices had remained constant between 1929 and 1930, Nominal GDP would have decreased
(A) 8.62%.
(B)9.43%.
(C) 11.97%.
(D) 13.6%.

29. Refer to Table 5. If the base year is Year 1, then the CPI in Year 3 was (A) 120.5.(B)111.2. (C) 74.7. (D) 111.2.

30. Refer to Table 5. The cost of the basket (A) decreased from Year 1 to Year 2 and increased from Year 2 to Year 3. (B) increased from Year 1 to Year 2 and decreased from Year 2 to Year 3. (C) increased from Year 1 to Year 2 and increased from Year 2 to Year 3. (D) decreased from Year 1 to Year 2 and decreased from Year 2 to Year 3.

31. Refer to Table 5. The inflation rate was (A) positive in Year 2 and positive in Year 3. (B) negative in Year 2 and negative in Year 3. (C) positive in Year 2 and negative in Year 3. (D) negative in Year 2 and positive in Year 3.

32. Xavier puts $7,000 into each of two different assets. The first asset pays 14 percent interest and the second pays 7 percent. According to the rule of 70, what is the approximate difference in the value of the two assets after 10 years? (A) $3,500 (B)$7,700 (C)$11,900 (D)$14,000

33. Ajudge requires Hoa to make a payment to Jordan. The judge says that Hoa can pay her either $10,000 today or $11,500 two years from today. Of the following interest rates, which is the highest one at which Hoa would be better off paying the money today? (A) 5 percent (B) 4 percent (C) 7 percent (D) 3 percent

34. Mixster Concrete Company is considering buying a new cement truck. The owners and their accountants decide that this is the profitable thing to do. Before they can buy the truck, the interest rate and price of trucks change.In which case do these changes both make them less likely to buy the truck? (A) Interest rates rise and truck prices rise. (B) Interest rates fall and truck prices rise. (C) Interest rates rise and truck prices fall. (D) Interest rates fall and truck prices fall.

35. Refer to Table 6. How many in the sample are unemployed? (A) 5 (B) 4 (C) 3 (D) 2

36. Refer to Table 6. How many in the sample are in the labor force? (A) 11(B)10 (C) 9 (D) 8

37. The labor-force participation rate tells us the fraction of the population that (A) has chosen to participate in the labor market. (B) is able to participate in the labor market. (C) has ever been employed. (D) has chosen not to participate in the labor market.

38. Refer to Figure 6. A decrease in Y from Y1 to Y2 is explained as follows: (A) The Federal Reserve increases the money supply, causing the money-demand curve to shift from MD1 to MD2; this shift of MD causes r to increase from r1 to r2; and this increase in r causes Y to decrease from Y1 to Y2. (B) An increase in P from P1 to P2 causes the money-demand curve to shift from MD 1 to MD2; this shift of MD causes r to increase from ri to re; and this increase in r causes Y to decrease from Y1 to Y2. (C) A decrease in P from P2 to P1 causes the money-demand curve to shift from MD1 to MD2; this shift of MD causes r1 to r2 increase from ri to re; and this increase in r causes Y to decrease from Y1 to Y2. (D) An increase in the price level causes the money-demand curve to shift from MD2 to MD 1; this shift of MD causes r to decrease from r2 to r1; and this decrease in r causes Y to decrease from Y1 to Y2.

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