If a one-year bond pays a fixed interest rate of 2.5% per year and this year's inflation rate is 2.8%, what is your real rate of return?
A. 0.053
B. 0.028
C. 0.025
D. 0.003
E. -0.003
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Which of the following is FALSE for the United States from 1960 to 2013?
A. black workers had consistently higher unemployment rates than white workers
B. teenagers had consistently higher unemployment rates than adult workers
C. male workers had consistently higher unemployment rates than female workers
D. the unemployment rate of teenage workers was never below 10 percent
E. the unemployment rate of white workers was never above 10 percent
Which of the following is FALSE for the unemployed in the United States?
A. in 2000, over 50 percent remained unemployed for less than 15 weeks
B. in 2000, less than 12 percent remained unemployed for more than 27 weeks
C. in 2009, less than 50 percent remained unemployed for less than 15 weeks
D. in 2009, over 40 percent remained unemployed for more than 27 weeks
E. in 2009, over 60 percent remained unemployed for less than 27 weeks
Which of the following statements is FALSE for the United States?
A. most of the unemployed remain unemployed for more than half a year
B. a significant amount of the turnover rate in the labor market is cyclical
C. variations in unemployment rates across groups defined by age, race, and gender tend to be large
D. almost 50 percent of the unemployed find a job in less than 14 weeks
E. many jobs were permanently eliminated in the 1990s, so the search for new employment took longer than it had in the past
The replacement ratio is
A. the reservation wage divided by the wage rate offered on a new job
B. the reduction in real GDP caused by a 1 percent reduction in unemployment benefits
C. after-tax income while unemployed divided by after-tax income while employed
D. the wage rate offered on a new job divided by unemployment benefits
E. the increase in the unemployment rate caused by a 1 percent increase in the inflation rate
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