Question 1

Based on what we know about the unemployment rates of adult males and females over the last five decades, which of the following is true?

Accepted Answer

A) the female unemployment rate was consistently higher than the male rate 
B) the male unemployment rate was consistently higher than the female rate 
C) after 1980, males experienced much more drastic changes in unemployment than females 
D) the unemployment rate for males never exceeded 10 percent 
E) none of the above 
A) the female unemployment rate was consistently higher than the male rate 
B) the male unemployment rate was consistently higher than the female rate 
C) after 1980, males experienced much more drastic changes in unemployment than females 
D) the unemployment rate for males never exceeded 10 percent 
E) none of the above

Question 2

Policy makers should be aware that they

Accepted Answer

A) can never lower the unemployment rate without causing a rapid increase in the rate of inflation 
B) can reduce unemployment without causing inflation if they start off slowly but intensify their efforts as the economy approaches full employment 
C) may be able to stimulate the economy out of a deep recession without significantly accelerating inflation 
D) must always deal with the large long-run tradeoff between inflation and unemployment 
E) can announce a policy change, which will create more rational expectations and enable them to reduce inflation without any costs to society 
A) can never lower the unemployment rate without causing a rapid increase in the rate of inflation 
B) can reduce unemployment without causing inflation if they start off slowly but intensify their efforts as the economy approaches full employment 
C) may be able to stimulate the economy out of a deep recession without significantly accelerating inflation 
D) must always deal with the large long-run tradeoff between inflation and unemployment 
E) can announce a policy change, which will create more rational expectations and enable them to reduce inflation without any costs to society

Question 3

Assume the unemployment rates among different groups in the labor force are as follows: adult males 7.5%, adult females 7.3%, and teenagers 15%.Teenagers account for 12% of the total labor force, while men account for 54% of the adult labor force.What is the actual unemployment rate nationwide?

Accepted Answer

A) 7)8% 
B) 8)3% 
C) 8)8% 
D) 9)2% 
E) 9)6% 
A) 7)8% 
B) 8)3% 
C) 8)8% 
D) 9)2% 
E) 9)6%

Question 4

Okun's law states that if the unemployment rate increases by 1percentage point, then

Accepted Answer

A) real GDP will fall by about 2 percent 
B)  real GDP will also fall by about 1 percent 
C)  real GDP will fall by about 0.5 percent 
D) the rate of inflation will decline by about 2 percent 
E) the rate of inflation will decline by about 0.5 percent 
A) real GDP will fall by about 2 percent 
B)  real GDP will also fall by about 1 percent 
C)  real GDP will fall by about 0.5 percent 
D) the rate of inflation will decline by about 2 percent 
E) the rate of inflation will decline by about 0.5 percent

Question 5

The replacement ratio is

Accepted Answer

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 
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

Question 6

The Beveridge curve shows a relationship between

Accepted Answer

A) the frequency and the duration of unemployment 
B) the level of output and the unemployment rate 
C) job vacancies and the unemployment rate 
D) job vacancies and the labor force participation rate 
E) the unemployment rate and alcohol consumption 
A) the frequency and the duration of unemployment 
B) the level of output and the unemployment rate 
C) job vacancies and the unemployment rate 
D) job vacancies and the labor force participation rate 
E) the unemployment rate and alcohol consumption

Question 7

The duration of unemployment depends on

Accepted Answer

A) how organized the labor market is in matching potential workers with jobs 
B) the age, sex, and racial mix of the labor force 
C) the ability and desire of those who are unemployed to hold out for a better job 
D) the availability of jobs that match workers' skills 
E) all of the above 
A) how organized the labor market is in matching potential workers with jobs 
B) the age, sex, and racial mix of the labor force 
C) the ability and desire of those who are unemployed to hold out for a better job 
D) the availability of jobs that match workers' skills 
E) all of the above

Question 8

Concerns about high unemployment

Accepted Answer

A) are not justified since most people find new employment in less than 3 months 
B) are irrational since the government routinely provides unemployment benefits for more than one year 
C) arise from its high costs in terms of lost output 
D) stem from the fact that the costs of unemployment tend to be unevenly distributed 
E) both C and D 
A) are not justified since most people find new employment in less than 3 months 
B) are irrational since the government routinely provides unemployment benefits for more than one year 
C) arise from its high costs in terms of lost output 
D) stem from the fact that the costs of unemployment tend to be unevenly distributed 
E) both C and D

Question 9

Which country below had the lowest unemployment rate in 2011?

Accepted Answer

A) France 
B) Germany 
C) Sweden 
D) United Kingdom 
E) United States 
A) France 
B) Germany 
C) Sweden 
D) United Kingdom 
E) United States

Question 10

Which of the following is FALSE for the United States from 1960 to 2013?

Accepted Answer

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 
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

Based on what we know about the unemployment rates of adult males and females over the last five decades, which of the following is true?

Policy makers should be aware that they

Assume the unemployment rates among different groups in the labor force are as follows: adult males 7.5%, adult females 7.3%, and teenagers 15%.Teenagers account for 12% of the total labor force, while men account for 54% of the adult labor force.What is the actual unemployment rate nationwide?

Okun's law states that if the unemployment rate increases by 1percentage point, then

The replacement ratio is

The Beveridge curve shows a relationship between

The duration of unemployment depends on

Concerns about high unemployment

Which country below had the lowest unemployment rate in 2011?

Which of the following is FALSE for the United States from 1960 to 2013?

Introduction

National income accounting

Growth and accumulation

Growth and policy

Aggregate supply and demand

Aggregate supply and the phillips curve

Inflation

Policy preview

Income and spending

Money, interest, and income

Monetary and fiscal policy

International linkages

Consumption and saving

Investment spending

The demand for money

The fed, money, and credit

Policy

Financial markets and asset prices

The national debt

Recession and depression

Inflation and hyperinflation

International adjustment and interdependence

Advanced topics

Filters

Exam 7: Unemployment

Based on what we know about the unemployment rates of adult males and females over the last five decades, which of the following is true?

Policy makers should be aware that they

Assume the unemployment rates among different groups in the labor force are as follows: adult males 7.5%, adult females 7.3%, and teenagers 15%.Teenagers account for 12% of the total labor force, while men account for 54% of the adult labor force.What is the actual unemployment rate nationwide?

Okun's law states that if the unemployment rate increases by 1percentage point, then

The replacement ratio is

The Beveridge curve shows a relationship between

The duration of unemployment depends on

Concerns about high unemployment

Which country below had the lowest unemployment rate in 2011?

Which of the following is FALSE for the United States from 1960 to 2013?

Introduction

National income accounting

Growth and accumulation

Growth and policy

Aggregate supply and demand

Aggregate supply and the phillips curve

Inflation

Policy preview

Income and spending

Money, interest, and income

Monetary and fiscal policy

International linkages

Consumption and saving

Investment spending

The demand for money

The fed, money, and credit

Policy

Financial markets and asset prices

The national debt

Recession and depression

Inflation and hyperinflation

International adjustment and interdependence

Advanced topics

Filters