1. Which of the following statements is true of the U.S. economy?
In the second half of the 1960s, the output gap was mostly negative while in the first half of the 1990s, the output gap was mostly positive
In the second half of the 1960s, the output gap was mostly positive while in the first half of the 1990s, the output gap was mostly negative
In the second half of the 1960s and the first half of the 1990s, the output gap was mostly negative
In the second half of the 1960s and the first half of the 1990s, the output gap was mostly positive.
2. The misery index is the sum of the
unemployment rate and the output gap
unemployment gap and the output gap
unemployment gap and the inflation gap
unemployment rate and the inflation rate
3. A firm does not pay a dividend. It is expected to pay its first dividend of $0.55 per share in 2 years. This dividend will grow at 11 percent indefinitely. Using a 13 percent discount rate, compute the current value of this stock.
$27.50
$24.89
$24.34
$28.05