1. What will happen to total output and real wages, respectively, in Bratislava, if an outbreak of SARS kills 20% of the workforce?
a. increase, decrease
b. uncertain, decrease
c. increase, increase
d. decrease, decrease
e. decrease, increase
2. What will happen to and total output and real wages, respectively, in Bratislava if immigration rules are changed so that there is a sharp increase in immigration by workers from other nations?
a. increase, decrease
b. decrease, uncertain
c. increase, increase
d. decrease, decrease
e. decrease, increase
3. What will happen to real wages and employment, respectively, in Bratislava if a major hurricane destroys a large portion of Bratislava’s capital stock, but does not injure or kill any humans?
a. increase, decrease
b. uncertain, uncertain
c. increase, increase
d. decrease, decrease
e. decrease, increase
4. What will happen to real wages and employment, respectively, in Bratislava if widespread use of the Internet causes a sharp increase in the productivity of workers.
a. increase, decrease
b. decrease, decrease
c. increase, increase
d. decrease, uncertain
e. decrease, increase
5. What will happen to real wages and output, respectively, in Bratislava if a major earthquake destroys a large portion of Bratislava’s capital stock and also kills a significant fraction of its workforce?
a. uncertain, decrease
b. decrease, decrease
c. increase, increase
d. decrease, uncertain
e. uncertain, uncertain
6. Supposing equilibrium in the loanable funds market exists use the following numbers to determine the quantity of funds supplied in the loanable funds market.
GDP .7 trillion
Consumption Spending .5 trillion
Taxes .7 trillion
Government Purchases .0 trillion
a. .2 trillion
b. .5 trillion
c. .9 trillion
d. .2 trillion
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