Question 1

The short-run relationship between the rate of change in the wage level and the level of unemployment is generally

Accepted Answer

A)  positive. 
B)  inverse. 
C)  nonexistent. 
D)  reflexive. 
E)  inert. 
A)  positive. 
B)  inverse. 
C)  nonexistent. 
D)  reflexive. 
E)  inert.

Question 2

Which of the following conditions imposes the largest disincentive to speculate in precious metals and collectibles?

Accepted Answer

A)  runaway inflation 
B)  negative real interest rates 
C)  price stability 
D)  significant increases in the general price level 
E)  a breakdown in the monetary system 
A)  runaway inflation 
B)  negative real interest rates 
C)  price stability 
D)  significant increases in the general price level 
E)  a breakdown in the monetary system

Question 3

The nonaccelerating inflation rate of unemployment is another name for the ________ rate of unemployment.

Accepted Answer

A)  cyclical 
B)  Keynesian 
C)  natural 
D)  actual 
E)  sedentary 
A)  cyclical 
B)  Keynesian 
C)  natural 
D)  actual 
E)  sedentary

Question 4

Inflation accelerates or decelerates when the

Accepted Answer

A)  NAIRU equals the natural rate of unemployment. 
B)  actual rate of unemployment remains below or above the NAIRU. 
C)  full-employment rate of unemployment remains above or below the natural rate of unemployment. 
D)  rate of change in productivity exceeds or falls short of the NAIRU. 
E)  unemployment rate exceeds or falls short of the rate of inflation. 
A)  NAIRU equals the natural rate of unemployment. 
B)  actual rate of unemployment remains below or above the NAIRU. 
C)  full-employment rate of unemployment remains above or below the natural rate of unemployment. 
D)  rate of change in productivity exceeds or falls short of the NAIRU. 
E)  unemployment rate exceeds or falls short of the rate of inflation.

Question 5

Inflation

Accepted Answer

A)  means demand is falling and supply is rising. 
B)  increases the value of the money supply. 
C)  rarely affects the distribution of income or wealth. 
D)  is generally highest when there is plenty of excess capacity and unemployed resources. 
E)  is a general upward movement in the average level of prices. 
A)  means demand is falling and supply is rising. 
B)  increases the value of the money supply. 
C)  rarely affects the distribution of income or wealth. 
D)  is generally highest when there is plenty of excess capacity and unemployed resources. 
E)  is a general upward movement in the average level of prices.

Question 6

Unanticipated inflation clearly imposes a cost on

Accepted Answer

A)  everyone, because it reduces money incomes. 
B)  employees working under contracts with cost-of-living increase clauses. 
C)  borrowers. 
D)  lenders. 
E)  foreigners, because our exports cost more. 
A)  everyone, because it reduces money incomes. 
B)  employees working under contracts with cost-of-living increase clauses. 
C)  borrowers. 
D)  lenders. 
E)  foreigners, because our exports cost more.

Question 7

A consumer price index of 325 means that prices are ________ percent higher than those in the base year.

Accepted Answer

A)  325 
B)  225 
C)  125 
D)  25 
E)  3.25 
A)  325 
B)  225 
C)  125 
D)  25 
E)  3.25

Question 8

The following question are based on the following graph, which shows the relationship between price levels and unemployment:
  
-If the rate of unemployment is 5 percent,the annual rate of change in prices is ________ percent.

Accepted Answer

A)  7 
B)  4 
C)  3 
D)  2 
E)  1 
A)  7 
B)  4 
C)  3 
D)  2 
E)  1

Question 9

The primary reason President Johnson opposed raising taxes during his administration was that

Accepted Answer

A)  until rather late in his administration, he feared that falling price levels would reduce government income. 
B)  he believed a tax increase to fund an unpopular war would be politically unwise. 
C)  his Council of Economic Advisers warned him that such a move would harm more than help the economy. 
D)  his attention was largely consumed with putting a man on the moon. 
E)  he felt the Federal Reserve System could control inflation by issuing more money. 
A)  until rather late in his administration, he feared that falling price levels would reduce government income. 
B)  he believed a tax increase to fund an unpopular war would be politically unwise. 
C)  his Council of Economic Advisers warned him that such a move would harm more than help the economy. 
D)  his attention was largely consumed with putting a man on the moon. 
E)  he felt the Federal Reserve System could control inflation by issuing more money.

Question 10

The following question are based on the following diagram:
  
-The rate of inflation is likely to be lowest when the economy's aggregate demand curve intersects the aggregate supply curve in

Accepted Answer

A)  the horizontal range. 
B)  the upward-sloping range. 
C)  the vertical range. 
D)  all three ranges. 
E)  a manner impossible to determine from the diagram. 
A)  the horizontal range. 
B)  the upward-sloping range. 
C)  the vertical range. 
D)  all three ranges. 
E)  a manner impossible to determine from the diagram.

The short-run relationship between the rate of change in the wage level and the level of unemployment is generally

Which of the following conditions imposes the largest disincentive to speculate in precious metals and collectibles?

The nonaccelerating inflation rate of unemployment is another name for the ________ rate of unemployment.

Inflation accelerates or decelerates when the

Inflation

Unanticipated inflation clearly imposes a cost on

A consumer price index of 325 means that prices are ________ percent higher than those in the base year.

The following question are based on the following graph, which shows the relationship between price levels and unemployment: -If the rate of unemployment is 5 percent,the annual rate of change in prices is ________ percent.

The primary reason President Johnson opposed raising taxes during his administration was that

The following question are based on the following diagram: -The rate of inflation is likely to be lowest when the economy's aggregate demand curve intersects the aggregate supply curve in

What is Economics

Markets and Prices

The Business Firm: Organization,motivation,and Optimal Input Decisions

Getting Behind the Demand and Supply Curves

Market Demand and Price Elasticity

Economic Efficiency,market Supply,and Perfect Competition

Monopoly and Its Regulation

Monopolistic Competition,oligopoly,and Antitrust Policy

Pollution and the Environment

The Supply and Demand for Labor

Interest,rent,and Profit

Poverty,income Inequality,and Discrimination

Economic Growth

Public Goods and the Role of the Government

National Income and Product

Business Fluctuations and Unemployment

The Determination of National Output and the Keynesian Multiplier

Fiscal Policy and National Output

Money and the Banking System

The Federal Reserve and Monetary Policy

Supply Shocks and Inflation

Productivity,growth,and Technology Policy

Surpluses,deficits,public Debt,and the Federal Budget

Monetary Policy,interest Rates,and Economic Activity

Controversies Over Stabilization Policy

International Trade

Exchange Rates and the Balance of Payments

Filters

Exam 19: Inflation

The short-run relationship between the rate of change in the wage level and the level of unemployment is generally

Which of the following conditions imposes the largest disincentive to speculate in precious metals and collectibles?

The nonaccelerating inflation rate of unemployment is another name for the ________ rate of unemployment.

Inflation accelerates or decelerates when the

Inflation

Unanticipated inflation clearly imposes a cost on

A consumer price index of 325 means that prices are ________ percent higher than those in the base year.

The following question are based on the following graph, which shows the relationship between price levels and unemployment: -If the rate of unemployment is 5 percent,the annual rate of change in prices is ________ percent.

The primary reason President Johnson opposed raising taxes during his administration was that

The following question are based on the following diagram: -The rate of inflation is likely to be lowest when the economy's aggregate demand curve intersects the aggregate supply curve in

What is Economics

Markets and Prices

The Business Firm: Organization,motivation,and Optimal Input Decisions

Getting Behind the Demand and Supply Curves

Market Demand and Price Elasticity

Economic Efficiency,market Supply,and Perfect Competition

Monopoly and Its Regulation

Monopolistic Competition,oligopoly,and Antitrust Policy

Pollution and the Environment

The Supply and Demand for Labor

Interest,rent,and Profit

Poverty,income Inequality,and Discrimination

Economic Growth

Public Goods and the Role of the Government

National Income and Product

Business Fluctuations and Unemployment

The Determination of National Output and the Keynesian Multiplier

Fiscal Policy and National Output

Money and the Banking System

The Federal Reserve and Monetary Policy

Supply Shocks and Inflation

Productivity,growth,and Technology Policy

Surpluses,deficits,public Debt,and the Federal Budget

Monetary Policy,interest Rates,and Economic Activity

Controversies Over Stabilization Policy

International Trade

Exchange Rates and the Balance of Payments

Filters