After taking out a one year loan with an annual interest rate of 5 percent, Tommy pays $2,100 back to the bank. The principal of the loan must be ________ and the interest payment must be ________.

Which of the following is consistent with the catch-up effect?

a. The United States had a higher growth rate before 1900 than after. b. After World War II the United States had lower growth rates than war-ravaged European countries. c. Although the United States has a relatively high level of output per person, its growth rate is rather modest compared to some countries. d. All of the above are correct.

If the frictional unemployment rate is 2 percent, the structural unemployment rate is 3 percent, and the overall unemployment rate is 9 percent, how much is the cyclical unemployment rate?

What will be an ideal response?