24. In spite of increases in the level of activity after a recession is over, the unemployment rate may
(A) increase as the discouraged workers leave the workforce
(B) decrease as the discouraged workers enter the workforce
(C) increase as the discouraged workers enter the workforce
(D) none of the above

25. The inflation rate in the Consumer Price Index is typically (A) a "countercyclical" and a "lagging" variable (B) a "procyclical" and a "lagging" variable (C) a "countercyclical" and a "leading" variable (D) a "procyclical" and a "leading" variable e. none of the above

26. A commercial bank has $80 million in loans and $10 million in excess reserves. The required reserve ratio is 10%. The total deposits of this bank are (A) $90 million (B) $100 million (C) $110 million (D) $900 million 

27. What should be CBA's open market operations and what would be the expected result? (A) Purchase the government securities. Fall in the interest rate. (B) Sell the government securities. Fall in the interest rate. (C) Purchase the government securities. Rise in the interest rate. (D) Sell the government securities. Rise in the interest rate.

28. The monetary policy of CBA to fix the economy of Argentina in the short run should (A) shift the aggregate supply curve to the right (B) shift the aggregate demand curve to the left (C) represents a movement to the left along the aggregate demand curve (D) represents a movement to the right along the aggregate supply curve e. none of the above

29. A firm can borrow from its bank at 10% per year. It determines that the return on investment (ROI) on a new machine is also 10%. The firm's decision to buy the new machine seems ______ now. If the central bank next week announces that it is buying large amount of government bonds in an open market operation, it seems more likely that the firm will decide to ______. (A) positive/not buy (B) uncertain/not buy (C) negative/not buy (D) uncertain/buy e. positive/buy

30. Long term economic growth is necessarily accompanied by a rise in (A) the allocation of resources (B) Inflation (C) the productivity of labor (D) transfer payments e. interest rates

11. When two goods are substitutes, a shock that raises the price of one good causes the price of the other good to(A) change in an unpredictable manner.(B) increase.(C) remain unchanged.(D) decrease.

12. If the demand function for orange juice is expressed as $Q = 2000 - 500p$, where $Q$ is quantity in gallons and $p$ is price per gallon measured in dollars, then the demand for orange juice has an unitary elasticity when price equals(A) 2.(B) 4.(C) 1.(D) 0.

1. Through a process of _______, the detective at last found out who the killer was from the clues. (A) deduction (B) distortion (C) diversity (D) distraction

2. The economic downturn has caused greater unemployment and ______ many of the poor to survive through illegal means. (A) identified (B) interacted (C) prompted (D) recharged

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