Question 1

The sum of the frictional and structural unemployment rates is thought of as the:

Accepted Answer

A)  cyclical rate of unemployment. 
B)  natural rate of unemployment. 
C)  seasonal rate of unemployment. 
D)  normal rate of unemployment. 
A)  cyclical rate of unemployment. 
B)  natural rate of unemployment. 
C)  seasonal rate of unemployment. 
D)  normal rate of unemployment.

Question 2

Unanticipated inflation is the difference between:

Accepted Answer

A)  the inflation rate this year and the inflation rate that we want the economy to have this year. 
B)  the actual observed inflation rate this year and the inflation rate last year. 
C)  the inflation rate last year and the inflation rate that we want the economy to have last year. 
D)  the expected inflation rate and the actual observed inflation rate. 
A)  the inflation rate this year and the inflation rate that we want the economy to have this year. 
B)  the actual observed inflation rate this year and the inflation rate last year. 
C)  the inflation rate last year and the inflation rate that we want the economy to have last year. 
D)  the expected inflation rate and the actual observed inflation rate.

Question 3

Suppose that 1999 is the base year and the price index for 2008 is 130. A basket of goods that is valued $200 in 1999 would cost _______ in 2008.

Accepted Answer

A)  $60 
B)  $30 
C)  $230 
D)  $260 
A)  $60 
B)  $30 
C)  $230 
D)  $260

Question 4

The cost of the basket of goods in 2009 is $550 and the cost of the basket of goods in 2010 is $700. If 2009 is used as the base year, the price index for 2010 is:

Accepted Answer

A)  127.2. 
B)  78.5. 
C)  155. 
D)  100. 
A)  127.2. 
B)  78.5. 
C)  155. 
D)  100.

Question 5

The presence of unemployment in the labor market implies that:

Accepted Answer

A)  people are not willing to work at the current wage. 
B)  there is excess demand in the labor market. 
C)  at the current wage, there are people who want to work but cannot find work. 
D)  there are some people who will not work at the current wage. 
A)  people are not willing to work at the current wage. 
B)  there is excess demand in the labor market. 
C)  at the current wage, there are people who want to work but cannot find work. 
D)  there are some people who will not work at the current wage.

Question 6

An auto worker in Ohio who loses her job because the company relocated the plant to another country represents an example of:

Accepted Answer

A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  structural unemployment. 
D)  natural unemployment. 
A)  cyclical unemployment. 
B)  frictional unemployment. 
C)  structural unemployment. 
D)  natural unemployment.

The sum of the frictional and structural unemployment rates is thought of as the:

Unanticipated inflation is the difference between:

Suppose that 1999 is the base year and the price index for 2008 is 130. A basket of goods that is valued $200 in 1999 would cost _______ in 2008.

The cost of the basket of goods in 2009 is $550 and the cost of the basket of goods in 2010 is $700. If 2009 is used as the base year, the price index for 2010 is:

The presence of unemployment in the labor market implies that:

An auto worker in Ohio who loses her job because the company relocated the plant to another country represents an example of:

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nations Production and Income

The Economy at Full Employment

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters

Exam 6: Unemployment and Inflation

The sum of the frictional and structural unemployment rates is thought of as the:

Unanticipated inflation is the difference between:

Suppose that 1999 is the base year and the price index for 2008 is 130. A basket of goods that is valued $200 in 1999 would cost _______ in 2008.

The cost of the basket of goods in 2009 is $550 and the cost of the basket of goods in 2010 is $700. If 2009 is used as the base year, the price index for 2010 is:

The presence of unemployment in the labor market implies that:

An auto worker in Ohio who loses her job because the company relocated the plant to another country represents an example of:

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nations Production and Income

The Economy at Full Employment

Why Do Economies Grow

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters