Exam 29: Business Cycles, Unemployment, and Inflation

Assume the natural rate of unemployment in the U.S.economy is 5 percent and the actual rate of unemployment is 9 percent.According to Okun's law, the negative GDP gap as a percentage of potential GDP is

The recurrent ups and downs in the level of economic activity extending over several years are referred to as

Potential Real GDP = $200 Billion Natural Rate of Unemployment = 6 Percent Actual Rate of Unemployment = 12 Percent Refer to the accompanying data, which is for a specific year in a hypothetical economy for which Okun's law is applicable.The size of the negative GDP gap as a percentage of potential GDP for the economy is

Inflation caused by an increase in aggregate spending is referred to as

Which of the following statements is correct?

Inflation rates in the United States reached double-digit rates in the

The labor force includes

Which of the following is correct?

General sources of shocks that can cause business cycles include the following, except

When inflation occurs,

When there is demand-pull inflation, people's total spending in the economy will be falling.

If a person's nominal income increases by 5 percent while the price level increases by 2 percent, then that person's real income

Who is least likely to be hurt by unanticipated inflation?

Unemployment that occurs when there is deficient demand for the goods and services of an economy is called

In the United States, the rate of unemployment is highest for

A lender need not be penalized by inflation if the

If the economy's actual GDP is greater than its potential GDP, then there is high unemployment in that economy.

If both the real interest rate and the nominal interest rate are 3 percent, then the

Unanticipated inflation benefits creditors and savers.

What are the primary effects of cost-push inflation?