Macroeconomics 211 Homework#2

HOMEWORK #2--MACROECONOMIC PRINCIPLES

ECN 211, Section 1005, LEC 85224--Fall Semester 2014

Dr. Filer

Due: At the end of class, Friday, October 17, 2014.

Multiple Choice: Answer each of these questions by darkening the bubble on your scantron sheet, as if you were taking an exam in class. Hand in only the scantron sheet. Make sure you have darkened in your name and 10-digit ASU Affiliate ID number on the scantron sheet. YOU MUST USE THE (8 1/2 INCH BY 11 INCH) SCANTRON FORM 229633 BY EXAM SYSTEM II, AVAILABLE IN THE ASU BOOKSTORE. NO OTHER TYPE OF SCANTRON FORM WILL BE ACCEPTABLE.

|1. |Structural unemployment is the result of |

|A) |short-term movement of workers between jobs. |

|B) |job search for first-time job seekers. |

|C) |technological change or permanent changes in industry demand. |

|D) |business cycle fluctuations. |

|E) |recurring changes in the hiring needs of certain industries. |

|2. |The real interest rate equals |

|A) |the nominal interest rate minus the rate of unexpected inflation. |

|B) |the rate of expected inflation minus the nominal interest rate. |

|C) |the nominal interest rate minus the rate of expected inflation....