Question 1

Unanticipated inflation penalizes:

Accepted Answer

A) those who are saving. 
B) those who are borrowing. 
C) governments. 
D) those who are in high-growth industries where wages are growing faster than prices. 
E) those who can't find jobs at any wage rate. 
A) those who are saving. 
B) those who are borrowing. 
C) governments. 
D) those who are in high-growth industries where wages are growing faster than prices. 
E) those who can't find jobs at any wage rate.

Question 2

During periods of inflation,the real value of a given amount of nominal dollars decreases.

Accepted Answer

A) True 
 B)False

Question 3

Government fiscal policies that attempt to stimulate aggregate demand are often aimed at reducing cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 4

The impact of _____ unemployment is removed from official monthly unemployment figures.

Accepted Answer

A) cyclical 
B) structural 
C) seasonal 
D) frictional 
E) involuntary 
A) cyclical 
B) structural 
C) seasonal 
D) frictional 
E) involuntary

Question 5

In periods of high inflation,_____.

Accepted Answer

A) people want to hold as much money as possible 
B) the purchasing power of money decreases 
C) the real interest rate exceeds the nominal interest rate 
D) the nominal interest rates are likely to be low 
E) the nominal interest rate equals the real interest rate 
A) people want to hold as much money as possible 
B) the purchasing power of money decreases 
C) the real interest rate exceeds the nominal interest rate 
D) the nominal interest rates are likely to be low 
E) the nominal interest rate equals the real interest rate

Question 6

Not counting _____ as unemployed understates unemployment.

Accepted Answer

A) children 
B) retired persons 
C) students 
D) people who do not want to work 
E) discouraged workers 
A) children 
B) retired persons 
C) students 
D) people who do not want to work 
E) discouraged workers

Question 7

The nominal interest rate is determined in the market for loanable funds.

Accepted Answer

A) True 
 B)False

Question 8

When an economy is operating at full employment,_____.

Accepted Answer

A) structural unemployment does not exist 
B) cyclical unemployment does not exist 
C) the unemployment rate is zero 
D) seasonal unemployment does not exist 
E) the number of discouraged workers is zero 
A) structural unemployment does not exist 
B) cyclical unemployment does not exist 
C) the unemployment rate is zero 
D) seasonal unemployment does not exist 
E) the number of discouraged workers is zero

Question 9

Jacqueline has a Ph.D.in economics.She has turned down many job offers because she eventually hopes to teach at one of the top ten universities in her field.The type of unemployment she is experiencing is:

Accepted Answer

A) frictional unemployment. 
B) structural unemployment. 
C) seasonal unemployment. 
D) cyclical unemployment. 
E) underemployment. 
A) frictional unemployment. 
B) structural unemployment. 
C) seasonal unemployment. 
D) cyclical unemployment. 
E) underemployment.

Question 10

Uncertainty about inflation:

Accepted Answer

A) shifts the attention of business managers away from exchange rate movements and toward concerns about productivity. 
B) reduces the difficulty of making international business decisions. 
C) make suppliers link the selling prices of their goods to the overall inflation rate. 
D) undermines money's importance as a link between the present and the future. 
E) makes contracts easier to negotiate. 
A) shifts the attention of business managers away from exchange rate movements and toward concerns about productivity. 
B) reduces the difficulty of making international business decisions. 
C) make suppliers link the selling prices of their goods to the overall inflation rate. 
D) undermines money's importance as a link between the present and the future. 
E) makes contracts easier to negotiate.

Unanticipated inflation penalizes:

During periods of inflation,the real value of a given amount of nominal dollars decreases.

Government fiscal policies that attempt to stimulate aggregate demand are often aimed at reducing cyclical unemployment.

The impact of _____ unemployment is removed from official monthly unemployment figures.

In periods of high inflation,_____.

Not counting _____ as unemployed understates unemployment.

The nominal interest rate is determined in the market for loanable funds.

When an economy is operating at full employment,_____.

Jacqueline has a Ph.D.in economics.She has turned down many job offers because she eventually hopes to teach at one of the top ten universities in her field.The type of unemployment she is experiencing is:

Uncertainty about inflation:

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Us Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Exam 7: Unemployment and Inflation

Unanticipated inflation penalizes:

During periods of inflation,the real value of a given amount of nominal dollars decreases.

Government fiscal policies that attempt to stimulate aggregate demand are often aimed at reducing cyclical unemployment.

The impact of _____ unemployment is removed from official monthly unemployment figures.

In periods of high inflation,_____.

Not counting _____ as unemployed understates unemployment.

The nominal interest rate is determined in the market for loanable funds.

When an economy is operating at full employment,_____.

Jacqueline has a Ph.D.in economics.She has turned down many job offers because she eventually hopes to teach at one of the top ten universities in her field.The type of unemployment she is experiencing is:

Uncertainty about inflation:

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Us Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters