Exam 24: Economic Growth, Business Cycles, and Unemployment

What was the typical rate of growth of United States GDP during the twentieth century and how did the decades of the 1970s and 1980s differ from that general pattern? Approximately how long (in years)was the typical business cycle in the last half century?

Which of the following is associated with an increase in potential output?

Use the following table to calculate the unemployment rate. Select the correct answer from the options below. In millims Civiliarn population 270 People incapable of working 70 People not looking for work 60 Employed workers 133

When people stop looking for work, because they feel they didn't have a chance of finding on, they're called:

The unemployment that occurs when people first enter the labor force or when they are in the process of changing jobs, is called:

The business cycle consists of several stages or phases. Which is the accurate sequence?

The secular trend growth rate in the United States is approximately:

Keynesian economists believe:

The highest amount of output an economy can sustainably produce and sell using existing production processes and resources is called:

What is the formal definition of the unemployment rate and how is it calculated? Describe each of the three macroeconomic categories of unemployment: cyclical,structural,and frictional and give an example of each type of unemployment.

Prior to the Industrial Revolution, unemployment was not generally considered a social problem because:

Mexico can produce vine-ripened tomatoes at a lower opportunity cost than firms in the United States. Through trade negotiations, the United States lifted quotas limiting the import of tomatoes from Mexico. Some firms in Florida, in the face of this new competition, had to close their farms and their workers lost their jobs. Many of the workers could not find new jobs right away. What type of unemployment describes the workers' situation?

What effect will including discouraged workers have on the unemployment rate?

Cyclical unemployment is defined as unemployment that results from:

Laissez-faire economists favor government intervention in the market process.

Which of the following explains why Keynesian economics lost influence in the 1970s?

What is the target rate of unemployment? What would happen if unemployment were below this rate?

In September 2010, the NBER's Business Cycle Dating Committee decided that the recession that began in December of 2007 had ended and that the lowest point of production was July of 2009. The NBER does not use a popular definition of recession-two quarters of falling GDP-but looks at a variety of monthly statistics to date business cycles.What is the NBER?

The Great Depression occurred in the early:

Explain how the unemployment rate is calculated.