Question 1

What is the Consumer Price Index (CPI)?

Accepted Answer

The Consumer Price Index is a

Question 2

An inflation rate that exceeds 50 percent per month is referred to as

Accepted Answer

A)  anticipated inflation. 
B)  destructive deflation. 
C)  hyperinflation. 
D)  superflation. 
A)  anticipated inflation. 
B)  destructive deflation. 
C)  hyperinflation. 
D)  superflation.

Question 3

People who are currently not working but are actively looking for work are officially classified as

Accepted Answer

A)  unemployed and in the labor force. 
B)  unemployed and out of the labor force. 
C)  employed and in the labor force. 
D)  employed and out of the labor force. 
A)  unemployed and in the labor force. 
B)  unemployed and out of the labor force. 
C)  employed and in the labor force. 
D)  employed and out of the labor force.

Question 4

Suppose an economy consists of 500,000 individuals 16 years and older, 260,000 are employed, and 21,000 are unemployed but actively seeking work. In this example the labor force participation rate is approximately

Accepted Answer

A)  4 percent. 
B)  48 percent. 
C)  52 percent. 
D)  56 percent. 
A)  4 percent. 
B)  48 percent. 
C)  52 percent. 
D)  56 percent.

Question 5

When the "real" GDP falls, the rate of unemployment generally

Accepted Answer

A)  increases. 
B)  decreases. 
C)  stays constant. 
D)  equals the natural rate. 
A)  increases. 
B)  decreases. 
C)  stays constant. 
D)  equals the natural rate.

Question 6

The unemployment rate

Accepted Answer

A)  rises during booms and falls during recessions. 
B)  rises during recessions and falls during booms. 
C)  rises during times of rapid economic growth and falls during times of slow economic growth. 
D)  tends to remain the same in booms and recessions. 
A)  rises during booms and falls during recessions. 
B)  rises during recessions and falls during booms. 
C)  rises during times of rapid economic growth and falls during times of slow economic growth. 
D)  tends to remain the same in booms and recessions.

Question 7

To operate efficiently, an economy generally "needs" ________ unemployment.

Accepted Answer

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

Question 8

Table 6.1
Employment status of the working age
population of Metropolis is approximately:
  
-Given the data in Table 6.1, the labor force participation rate of Metropolis is approximately

Accepted Answer

A)  96 percent. 
B)  91 percent. 
C)  83 percent. 
D)  78 percent. 
A)  96 percent. 
B)  91 percent. 
C)  83 percent. 
D)  78 percent.

Question 9

In what sense is frictional unemployment "good" for the economy?

Accepted Answer

Since frictional unemployment

Question 10

If a large number of people are classified as being out of the labor force when they are really looking for work, this will lead to an official unemployment rate that is lower than the true unemployment rate.

Accepted Answer

A) True 
 B)False

Question 11

The Consumer Price Index (CPI)relies on the calculation of

Accepted Answer

A)  prices of a fixed basket of goods that does not change often. 
B)  prices of a variable basket of goods that changes frequently. 
C)  the components of GDP that change annually. 
D)  the components of GDP that do not change frequently. 
A)  prices of a fixed basket of goods that does not change often. 
B)  prices of a variable basket of goods that changes frequently. 
C)  the components of GDP that change annually. 
D)  the components of GDP that do not change frequently.

Question 12

Unemployment and recessions are sometimes necessary to curb high inflation.

Accepted Answer

A) True 
 B)False

Question 13

Economists call the physical cost of changing prices

Accepted Answer

A)  the cost of doing business. 
B)  menu costs. 
C)  inflationary suffrage. 
D)  increasing profits. 
A)  the cost of doing business. 
B)  menu costs. 
C)  inflationary suffrage. 
D)  increasing profits.

Question 14

Could the advent of the Internet completely eliminate frictional unemployment?

Accepted Answer

While the Internet can improve the excha

Question 15

Why do both the chain-weighted index for GDP and the CPI overstate actual price increases?

Accepted Answer

Both price indices overstate the actual

What is the Consumer Price Index (CPI)?

An inflation rate that exceeds 50 percent per month is referred to as

People who are currently not working but are actively looking for work are officially classified as

Suppose an economy consists of 500,000 individuals 16 years and older, 260,000 are employed, and 21,000 are unemployed but actively seeking work. In this example the labor force participation rate is approximately

When the "real" GDP falls, the rate of unemployment generally

The unemployment rate

To operate efficiently, an economy generally "needs" ________ unemployment.

Table 6.1 Employment status of the working age population of Metropolis is approximately: -Given the data in Table 6.1, the labor force participation rate of Metropolis is approximately

In what sense is frictional unemployment "good" for the economy?

If a large number of people are classified as being out of the labor force when they are really looking for work, this will lead to an official unemployment rate that is lower than the true unemployment rate.

The Consumer Price Index (CPI)relies on the calculation of

Unemployment and recessions are sometimes necessary to curb high inflation.

Economists call the physical cost of changing prices

Could the advent of the Internet completely eliminate frictional unemployment?

Why do both the chain-weighted index for GDP and the CPI overstate actual price increases?

Introduction: What Is Economics?

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nation's 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

What is the Consumer Price Index (CPI)?

An inflation rate that exceeds 50 percent per month is referred to as

People who are currently not working but are actively looking for work are officially classified as

Suppose an economy consists of 500,000 individuals 16 years and older, 260,000 are employed, and 21,000 are unemployed but actively seeking work. In this example the labor force participation rate is approximately

When the "real" GDP falls, the rate of unemployment generally

The unemployment rate

To operate efficiently, an economy generally "needs" ________ unemployment.

Table 6.1 Employment status of the working age population of Metropolis is approximately: -Given the data in Table 6.1, the labor force participation rate of Metropolis is approximately

In what sense is frictional unemployment "good" for the economy?

If a large number of people are classified as being out of the labor force when they are really looking for work, this will lead to an official unemployment rate that is lower than the true unemployment rate.

The Consumer Price Index (CPI)relies on the calculation of

Unemployment and recessions are sometimes necessary to curb high inflation.

Economists call the physical cost of changing prices

Could the advent of the Internet completely eliminate frictional unemployment?

Why do both the chain-weighted index for GDP and the CPI overstate actual price increases?

Introduction: What Is Economics?

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nation's 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