Question 1

The ________ in employment during a recession is smaller if wages are ________.

Accepted Answer

A)  decline; rigid 
B)  increase; rigid 
C)  decline; flexible 
D)  increase; flexible 
A)  decline; rigid 
B)  increase; rigid 
C)  decline; flexible 
D)  increase; flexible

Question 2

Since the Great Depression,approximately how often have U.S.recessions occurred?

Accepted Answer

A)  About once every 6 years 
B)  About once every 10 years 
C)  About once every 14 years 
D)  About once every 18 years 
A)  About once every 6 years 
B)  About once every 10 years 
C)  About once every 14 years 
D)  About once every 18 years

Question 3

A decline in money supply will lead to a(n)________ if nominal wages are rigid.

Accepted Answer

A)  fall in real wages 
B)  fall in labor demand 
C)  increase in real output 
D)  increase in labor demand 
A)  fall in real wages 
B)  fall in labor demand 
C)  increase in real output 
D)  increase in labor demand

Question 4

The Phillips curve describes a ________.

Accepted Answer

A)  negative relationship between wage growth and inflation 
B)  negative relationship between employment growth and inflation 
C)  positive relationship between wage growth and inflation 
D)  positive relationship between employment growth and inflation 
A)  negative relationship between wage growth and inflation 
B)  negative relationship between employment growth and inflation 
C)  positive relationship between wage growth and inflation 
D)  positive relationship between employment growth and inflation

Question 5

Recovery after the recession of 2007-2009 was slow.When do economists generally believe U.S.real GDP returned to trend after this recession?

Accepted Answer

A)  About 2010 
B)  About 2013 
C)  About 2016 
D)  It was still below trend by 2016 
A)  About 2010 
B)  About 2013 
C)  About 2016 
D)  It was still below trend by 2016

Question 6

An economist warns that the economy is "overheating" and will soon experience high inflation.The economist must be concerned that the economy is near ________.

Accepted Answer

A)  a recession 
B)  full employment 
C)  pre-recession levels 
D)  peak unemployment 
A)  a recession 
B)  full employment 
C)  pre-recession levels 
D)  peak unemployment

Question 7

Suppose we are plotting the relationship between the unemployment rate and the growth rate of real GDP.If the unemployment rate is measured along the vertical axis and the growth rate of real GDP is measured along the horizontal axis,we will get a(n)________.

Accepted Answer

A)  horizontal line 
B)  vertical line 
C)  upward-sloping curve 
D)  downward-sloping curve 
A)  horizontal line 
B)  vertical line 
C)  upward-sloping curve 
D)  downward-sloping curve

Question 8

A(n)________ monetary policy causes the real interest rate to ________.

Accepted Answer

A)  expansionary; rise 
B)  contractionary; rise 
C)  expansionary; remain unchanged 
D)  contractionary; remain unchanged 
A)  expansionary; rise 
B)  contractionary; rise 
C)  expansionary; remain unchanged 
D)  contractionary; remain unchanged

Question 9

The ________ theory emphasizes that changing productivity and technology are the main reasons behind fluctuations in an economy.

Accepted Answer

A)  real business cycle 
B)  Keynesian 
C)  Ricardian 
D)  monetary 
A)  real business cycle 
B)  Keynesian 
C)  Ricardian 
D)  monetary

Question 10

Which of the following is true?

Accepted Answer

A)  Expansions have different durations. 
B)  Expansions are always shorter than recessions. 
C)  Recessions are always accompanied by high rates of inflation. 
D)  Economists can accurately predict the end of a recession. 
A)  Expansions have different durations. 
B)  Expansions are always shorter than recessions. 
C)  Recessions are always accompanied by high rates of inflation. 
D)  Economists can accurately predict the end of a recession.

Question 11

Contractionary monetary policy causes ________.

Accepted Answer

A)  the aggregate price level to rise 
B)  the aggregate price level to fall 
C)  real interest rates to fall 
D)  real output to rise 
A)  the aggregate price level to rise 
B)  the aggregate price level to fall 
C)  real interest rates to fall 
D)  real output to rise

Question 12

The figure below shows the labor demand and labor supply curves for an economy.
  
-Refer to the figure above.The labor market is currently at point E.Which of the following is likely to happen if a recession hits the economy,assuming that wages are flexible?

Accepted Answer

A)  The labor market equilibrium will move from point E to point G. 
B)  The labor market equilibrium will move from point E to point H. 
C)  The labor market equilibrium will move from point E to point D. 
D)  The labor market equilibrium will move from point E to point F. 
A)  The labor market equilibrium will move from point E to point G. 
B)  The labor market equilibrium will move from point E to point H. 
C)  The labor market equilibrium will move from point E to point D. 
D)  The labor market equilibrium will move from point E to point F.

Question 13

Which of the following statements about U.S.recessions since the Great Depression is correct?

Accepted Answer

A)  Recessions have occurred regularly, every 6 years. 
B)  Recessions have occurred irregularly, approximately every 6 years. 
C)  Recessions have occurred regularly, every 10 years. 
D)  Recessions have occurred irregularly, approximately every 10 years. 
A)  Recessions have occurred regularly, every 6 years. 
B)  Recessions have occurred irregularly, approximately every 6 years. 
C)  Recessions have occurred regularly, every 10 years. 
D)  Recessions have occurred irregularly, approximately every 10 years.

Question 14

How did falling real estate prices in the late 2000s affect employment in the residential and non-residential construction industries?

Accepted Answer

A)  Employment in both residential and non-residential construction industries fell. 
B)  Employment in the residential construction industry fell, but employment in the non-residential construction industry remained steady. 
C)  Employment in the residential construction industry fell, but employment in the non-residential construction industry increased. 
D)  Employment in the residential construction industry remained steady, but employment in the non-residential construction industry fell. 
A)  Employment in both residential and non-residential construction industries fell. 
B)  Employment in the residential construction industry fell, but employment in the non-residential construction industry remained steady. 
C)  Employment in the residential construction industry fell, but employment in the non-residential construction industry increased. 
D)  Employment in the residential construction industry remained steady, but employment in the non-residential construction industry fell.

Question 15

The Great Depression and World War II both caused major deviations from trend GDP.The Great Depression resulted in real GDP moving significantly ________ trend GDP; World War II resulted in real GDP moving significantly ________ trend GDP.

Accepted Answer

A)  above; above 
B)  above; below 
C)  below; above 
D)  below; below 
A)  above; above 
B)  above; below 
C)  below; above 
D)  below; below

Question 16

The Phillips curve relationship exists primarily when the economy ________.

Accepted Answer

A)  has high unemployment 
B)  experiences a financial crisis 
C)  approaches full employment 
D)  is in a recession 
A)  has high unemployment 
B)  experiences a financial crisis 
C)  approaches full employment 
D)  is in a recession

Question 17

In a horizontal section of a labor supply curve,________.

Accepted Answer

A)  a change in the wage rate results in the quantity of labor supplied changing in the same direction 
B)  a change in the wage rate results in the quantity of labor supplied changing in the opposite direction 
C)  a change in the wage rate does not result in any change in the quantity of labor supplied 
D)  the wage rate does not change as the quantity of labor supplied changes 
A)  a change in the wage rate results in the quantity of labor supplied changing in the same direction 
B)  a change in the wage rate results in the quantity of labor supplied changing in the opposite direction 
C)  a change in the wage rate does not result in any change in the quantity of labor supplied 
D)  the wage rate does not change as the quantity of labor supplied changes

Question 18

The price of electricity consumption increased in a country.Since electricity is used for the production of various goods and services,this will lead to a(n)________,assuming all else equal.

Accepted Answer

A)  downward movement along the labor demand curves of firms 
B)  upward movement along the labor demand curves of firms 
C)  leftward shift of the labor demand curves of firms 
D)  rightward shift of the labor demand curves of firms 
A)  downward movement along the labor demand curves of firms 
B)  upward movement along the labor demand curves of firms 
C)  leftward shift of the labor demand curves of firms 
D)  rightward shift of the labor demand curves of firms

Question 19

Why did the fall in housing prices lead to bank failures in the United States during 2007-2009?

Accepted Answer

Falling housing prices led to mortgage d

Question 20

If the government of Techland reduces tax rates,________.

Accepted Answer

A)  the economy's labor demand curve will shift to the right 
B)  the economy's labor demand curve will shift to the left 
C)  the economy's aggregate supply curve will shift to the left 
D)  the economy's labor supply curve will shift to the left 
A)  the economy's labor demand curve will shift to the right 
B)  the economy's labor demand curve will shift to the left 
C)  the economy's aggregate supply curve will shift to the left 
D)  the economy's labor supply curve will shift to the left

The in employment during a recession is smaller if wages are .

Since the Great Depression,approximately how often have U.S.recessions occurred?

A decline in money supply will lead to a(n)________ if nominal wages are rigid.

The Phillips curve describes a ________.

Recovery after the recession of 2007-2009 was slow.When do economists generally believe U.S.real GDP returned to trend after this recession?

An economist warns that the economy is "overheating" and will soon experience high inflation.The economist must be concerned that the economy is near ________.

Suppose we are plotting the relationship between the unemployment rate and the growth rate of real GDP.If the unemployment rate is measured along the vertical axis and the growth rate of real GDP is measured along the horizontal axis,we will get a(n)________.

A(n) monetary policy causes the real interest rate to .

The ________ theory emphasizes that changing productivity and technology are the main reasons behind fluctuations in an economy.

Which of the following is true?

Contractionary monetary policy causes ________.

The figure below shows the labor demand and labor supply curves for an economy. -Refer to the figure above.The labor market is currently at point E.Which of the following is likely to happen if a recession hits the economy,assuming that wages are flexible?

Which of the following statements about U.S.recessions since the Great Depression is correct?

How did falling real estate prices in the late 2000s affect employment in the residential and non-residential construction industries?

The Great Depression and World War II both caused major deviations from trend GDP.The Great Depression resulted in real GDP moving significantly trend GDP; World War II resulted in real GDP moving significantly trend GDP.

The Phillips curve relationship exists primarily when the economy ________.

In a horizontal section of a labor supply curve,________.

The price of electricity consumption increased in a country.Since electricity is used for the production of various goods and services,this will lead to a(n)________,assuming all else equal.

Why did the fall in housing prices lead to bank failures in the United States during 2007-2009?

If the government of Techland reduces tax rates,________.

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Demand, Supply, and Equilibrium

The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Aggregate Incomes

Economic Growth

Why Isn't the Whole World Developed?

Employment and Unemployment

Credit Markets

The Monetary System

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

Filters

Exam 12: Short-Run Fluctuations

The ________ in employment during a recession is smaller if wages are ________.

Since the Great Depression,approximately how often have U.S.recessions occurred?

A decline in money supply will lead to a(n)________ if nominal wages are rigid.

The Phillips curve describes a ________.

Recovery after the recession of 2007-2009 was slow.When do economists generally believe U.S.real GDP returned to trend after this recession?

An economist warns that the economy is "overheating" and will soon experience high inflation.The economist must be concerned that the economy is near ________.

Suppose we are plotting the relationship between the unemployment rate and the growth rate of real GDP.If the unemployment rate is measured along the vertical axis and the growth rate of real GDP is measured along the horizontal axis,we will get a(n)________.

A(n)________ monetary policy causes the real interest rate to ________.

The ________ theory emphasizes that changing productivity and technology are the main reasons behind fluctuations in an economy.

Which of the following is true?

Contractionary monetary policy causes ________.

The figure below shows the labor demand and labor supply curves for an economy. -Refer to the figure above.The labor market is currently at point E.Which of the following is likely to happen if a recession hits the economy,assuming that wages are flexible?

Which of the following statements about U.S.recessions since the Great Depression is correct?

How did falling real estate prices in the late 2000s affect employment in the residential and non-residential construction industries?

The Great Depression and World War II both caused major deviations from trend GDP.The Great Depression resulted in real GDP moving significantly ________ trend GDP; World War II resulted in real GDP moving significantly ________ trend GDP.

The Phillips curve relationship exists primarily when the economy ________.

In a horizontal section of a labor supply curve,________.

The price of electricity consumption increased in a country.Since electricity is used for the production of various goods and services,this will lead to a(n)________,assuming all else equal.

Why did the fall in housing prices lead to bank failures in the United States during 2007-2009?

If the government of Techland reduces tax rates,________.

The Principles and Practice of Economics

Economic Methods and Economic Questions

Optimization: Doing the Best You Can

Demand, Supply, and Equilibrium

The Wealth of Nations: Defining and Measuring Macroeconomic Aggregates

Aggregate Incomes

Economic Growth

Why Isn't the Whole World Developed?

Employment and Unemployment

Credit Markets

The Monetary System

Countercyclical Macroeconomic Policy

Macroeconomics and International Trade

Open Economy Macroeconomics

Filters

The in employment during a recession is smaller if wages are .

A(n) monetary policy causes the real interest rate to .

The Great Depression and World War II both caused major deviations from trend GDP.The Great Depression resulted in real GDP moving significantly trend GDP; World War II resulted in real GDP moving significantly trend GDP.