Question 1

The unemployment rate that many economists believe represents full employment is

Accepted Answer

A)  0 percent. 
B)  0-4 percent. 
C)  4-6 percent. 
D)  6-8 percent. 
E)  8-10 percent 
A)  0 percent. 
B)  0-4 percent. 
C)  4-6 percent. 
D)  6-8 percent. 
E)  8-10 percent

Question 2

Someone unemployed for a long period of time due to technological change would be described as structurally unemployed.

Accepted Answer

A) True 
 B)False

Question 3

The use of automated teller machines (ATMs)has caused some bank tellers to lose their jobs.This is an example of

Accepted Answer

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

Question 4

A nation's standard of living depends on its population and labor productivity.

Accepted Answer

A) True 
 B)False

Question 5

Technological change or the effects of automation cause

Accepted Answer

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

Question 6

When nominal interest rates are held below inflation rates,then households will have an incentive to

Accepted Answer

A)  consume. 
B)  save. 
C)  purchase financial assets. 
D)  postpone current consumption plans. 
A)  consume. 
B)  save. 
C)  purchase financial assets. 
D)  postpone current consumption plans.

Question 7

The production function shows the volume of output that can be produced from given inputs.

Accepted Answer

A) True 
 B)False

Question 8

Due to the distortionary effects of inflation,capital investment may be reduced due to higher price levels.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following countries has not experienced hyperinflation in the twentieth century?

Accepted Answer

A)  Germany 
B)  Russia 
C)  Argentina 
D)  United States 
A)  Germany 
B)  Russia 
C)  Argentina 
D)  United States

Question 10

Adding together the growth rate of labor input and the growth rate of labor productivity yields the growth rate of

Accepted Answer

A)  nominal GDP. 
B)  actual GDP. 
C)  potential GDP. 
D)  final GDP. 
A)  nominal GDP. 
B)  actual GDP. 
C)  potential GDP. 
D)  final GDP.

Question 11

Which country most recently experienced hyperinflation?

Accepted Answer

A)  Germany 
B)  Zimbabwe 
C)  Chile 
D)  all of the above 
A)  Germany 
B)  Zimbabwe 
C)  Chile 
D)  all of the above

Question 12

If both borrowers and lenders anticipate the rate of inflation correctly,then

Accepted Answer

A)  borrowers will lose real income. 
B)  lenders will lose real income. 
C)  both borrowers and lenders will lose real income. 
D)  neither borrowers nor lenders will lose real income. 
A)  borrowers will lose real income. 
B)  lenders will lose real income. 
C)  both borrowers and lenders will lose real income. 
D)  neither borrowers nor lenders will lose real income.

Question 13

In 2009 the average unemployment rate in U.S.averaged

Accepted Answer

A) 4.6 percent. 
B) 5.4 percent. 
C) 7.2 percent. 
D) 9.3 percent. 
A) 4.6 percent. 
B) 5.4 percent. 
C) 7.2 percent. 
D) 9.3 percent.

Question 14

Someone who is out of work because they are between jobs is experiencing

Accepted Answer

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

Question 15

Structural unemployment may be particularly severe for

Accepted Answer

A)  younger workers 
B)  college graduates. 
C)  older workers. 
D)  workers with "high tech" skills. 
A)  younger workers 
B)  college graduates. 
C)  older workers. 
D)  workers with "high tech" skills.

Question 16

One of the social benefits of frictional unemployment is that

Accepted Answer

A)  workers get time off from work. 
B)  economic growth is limited. 
C)  workers move from less to more valuable firms. 
D)  wage rates decrease. 
A)  workers get time off from work. 
B)  economic growth is limited. 
C)  workers move from less to more valuable firms. 
D)  wage rates decrease.

Question 17

One of the distinguishing differences between periods of low inflation and periods of high inflation is that

Accepted Answer

A)  low inflation periods are short-lived. 
B)  high inflation periods are short-lived. 
C)  high inflation periods are long-lived. 
D)  low inflation leads to high inflation. 
A)  low inflation periods are short-lived. 
B)  high inflation periods are short-lived. 
C)  high inflation periods are long-lived. 
D)  low inflation leads to high inflation.

Question 18

Labor productivity is calculated by dividing GDP by

Accepted Answer

A)  population. 
B)  the price level. 
C)  capital stock 
D)  labor force. 
A)  population. 
B)  the price level. 
C)  capital stock 
D)  labor force.

Question 19

Unemployment insurance has an important macroeconomic effect because it

Accepted Answer

A)  props up aggregate supply. 
B)  props up aggregate demand. 
C)  props up aggregate exports. 
D)  helps balance the federal budget. 
A)  props up aggregate supply. 
B)  props up aggregate demand. 
C)  props up aggregate exports. 
D)  helps balance the federal budget.

Question 20

The term frictional unemployment refers to persons who are out of work

Accepted Answer

A)  due to technological change. 
B)  due to strikes or lockouts. 
C)  and have given up looking for work. 
D)  because they are between jobs. 
A)  due to technological change. 
B)  due to strikes or lockouts. 
C)  and have given up looking for work. 
D)  because they are between jobs.

The unemployment rate that many economists believe represents full employment is

Someone unemployed for a long period of time due to technological change would be described as structurally unemployed.

The use of automated teller machines (ATMs)has caused some bank tellers to lose their jobs.This is an example of

A nation's standard of living depends on its population and labor productivity.

Technological change or the effects of automation cause

When nominal interest rates are held below inflation rates,then households will have an incentive to

The production function shows the volume of output that can be produced from given inputs.

Due to the distortionary effects of inflation,capital investment may be reduced due to higher price levels.

Which of the following countries has not experienced hyperinflation in the twentieth century?

Adding together the growth rate of labor input and the growth rate of labor productivity yields the growth rate of

Which country most recently experienced hyperinflation?

If both borrowers and lenders anticipate the rate of inflation correctly,then

In 2009 the average unemployment rate in U.S.averaged

Someone who is out of work because they are between jobs is experiencing

Structural unemployment may be particularly severe for

One of the social benefits of frictional unemployment is that

One of the distinguishing differences between periods of low inflation and periods of high inflation is that

Labor productivity is calculated by dividing GDP by

Unemployment insurance has an important macroeconomic effect because it

The term frictional unemployment refers to persons who are out of work

What Is Economics?

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

An Introduction to Macroeconomics

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

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Exam 6: The Goals of Macroeconomic Policy

The unemployment rate that many economists believe represents full employment is

Someone unemployed for a long period of time due to technological change would be described as structurally unemployed.

The use of automated teller machines (ATMs)has caused some bank tellers to lose their jobs.This is an example of

A nation's standard of living depends on its population and labor productivity.

Technological change or the effects of automation cause

When nominal interest rates are held below inflation rates,then households will have an incentive to

The production function shows the volume of output that can be produced from given inputs.

Due to the distortionary effects of inflation,capital investment may be reduced due to higher price levels.

Which of the following countries has not experienced hyperinflation in the twentieth century?

Adding together the growth rate of labor input and the growth rate of labor productivity yields the growth rate of

Which country most recently experienced hyperinflation?

If both borrowers and lenders anticipate the rate of inflation correctly,then

In 2009 the average unemployment rate in U.S.averaged

Someone who is out of work because they are between jobs is experiencing

Structural unemployment may be particularly severe for

One of the social benefits of frictional unemployment is that

One of the distinguishing differences between periods of low inflation and periods of high inflation is that

Labor productivity is calculated by dividing GDP by

Unemployment insurance has an important macroeconomic effect because it

The term frictional unemployment refers to persons who are out of work

What Is Economics?

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

An Introduction to Macroeconomics

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

Filters