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Labor Market Category Number of People Employed 275,000 Unemployed 25,000 Not in the Labor Force 200,000 Refer to the table above. The value of the employment-to-population is approximately ____.

True or False: The economy depicted above is currently experiencing a recessionary gap.

Suppose that the tax multiplier is -2, and that the government wishes to reduce Real GDP by $80 million. The government could ___ taxes by ____.

Suppose that depository institutions hold excess reserves, and that the reserve requirement is 5%. The money multiplier is ____.

Suppose that the government spending multiplier is 1.5, and that the government increases government spending by $30 million. Real GDP will ____ by ____.

Generally speaking, the interest rates on longer-term loans are ____ than the interest rates on shorter term loans, because longer-term loans are ____ risky.

Year Bag of Chips Pints of Guacamole Price of aBag of Chips Price of a Pint of Guacamole 2016 (base) 28 15 $1.50 $3.00 2017 32 18 $1.50 $3.20 2018 34 18 $1.70 $3.30 In the table above, total economic production and price data is provided. Suppose that chips and guacamole are the only two final goods produced in this economy. The CPI in 2017 is approximately ____.

Refer to figure above. How much tax per necktie has been imposed by the government?

Real GDP Government Receipts Government Outlays $ 3 trillion $0.3 trillion $1.3 trillion $ 4 trillion $0.6 trillion $1.1 trillion $ 5 trillion $0.9 trillion $0.9 trillion $ 6 trillion $1.2 trillion $0.7 trillion $ 7 trillion $1.5 trillion $0.5 trillion Refer to the table above. When Real GDP equals $6 trillion, there is a government budget _____ of _____.

A price floor set above the equilibrium price _____ a shortage of the good and _____ a deadweight loss.