Question 1

The natural rate of unemployment is the unemployment rate that would exist in the absence of _____.

Accepted Answer

A)  structural unemployment 
B)  educated unemployment 
C)  cyclical unemployment 
D)  frictional unemployment 
E)  underemployment 
A)  structural unemployment 
B)  educated unemployment 
C)  cyclical unemployment 
D)  frictional unemployment 
E)  underemployment

Question 2

Which of the following is observed in an economy during the contraction phase of the business cycle?

Accepted Answer

A)  Nominal GDP begins to rise 
B)  Real GDP remains constant 
C)  Real GDP falls 
D)  Productivity of resources increase 
E)  Unemployment falls 
A)  Nominal GDP begins to rise 
B)  Real GDP remains constant 
C)  Real GDP falls 
D)  Productivity of resources increase 
E)  Unemployment falls

Question 3

Economists call a severe prolonged economic recession a:

Accepted Answer

A)  slump. 
B)  depression. 
C)  stagnation. 
D)  stagflation. 
E)  trend. 
A)  slump. 
B)  depression. 
C)  stagnation. 
D)  stagflation. 
E)  trend.

Question 4

Which of the following will be considered a lagging indicator of the business cycle?

Accepted Answer

A)  Money supply 
B)  New building permits 
C)  Unemployment duration 
D)  Unemployment claims 
E)  New plant and equipment orders 
A)  Money supply 
B)  New building permits 
C)  Unemployment duration 
D)  Unemployment claims 
E)  New plant and equipment orders

Question 5

If the inflation rate for a given year is 5 percent, then $1.00 in the previous year will buy goods worth approximately $0.95 this year.

Accepted Answer

A) True 
 B)False

Question 6

The effect of _____ is to produce an unemployment rate that understates actual unemployment.

Accepted Answer

A)  the underground economy 
B)  discouraged workers and underemployment 
C)  the growth in real GDP 
D)  institutionalized and retired labor force 
E)  seasonally unemployed workers 
A)  the underground economy 
B)  discouraged workers and underemployment 
C)  the growth in real GDP 
D)  institutionalized and retired labor force 
E)  seasonally unemployed workers

Question 7

According to general trends in the incidence of unemployment across different demographic groups in the United States, which of the following groups have the lowest unemployment rates in the country?

Accepted Answer

A)  Asians 
B)  Hispanics 
C)  Whites 
D)  Nonwhites 
E)  Latinos 
A)  Asians 
B)  Hispanics 
C)  Whites 
D)  Nonwhites 
E)  Latinos

Question 8

When inflation is much higher than expected, which of the following is true?

Accepted Answer

A)  Nominal incomes are lower than expected. 
B)  Real interest rates are higher than expected. 
C)  Income is redistributed from those whose expenditures are fixed toward those who receive a fixed income. 
D)  Nominal interest rates are lower than expected. 
E)  Real interest rates are lower than expected. 
A)  Nominal incomes are lower than expected. 
B)  Real interest rates are higher than expected. 
C)  Income is redistributed from those whose expenditures are fixed toward those who receive a fixed income. 
D)  Nominal interest rates are lower than expected. 
E)  Real interest rates are lower than expected.

Question 9

Scenario 7.1?Of 1,350 people surveyed, 318 are not working.?The status of those not working is as follows:?122 full-time students?29 discouraged workers?18 in long-term-care facilities?21 seeking employment and aged 16 or older?50 retirees?63 under age 16
15 working in the underground economy and not looking for a "real" job?Eight of those working were under 16 years of age.
-Refer to Scenario 7.1. According to the data provided, the official unemployment rate is:

Accepted Answer

A)  0.02 percent. 
B)  2.0 percent. 
C)  10 percent. 
D)  3.6 percent 
E)  33.7 percent.. 
A)  0.02 percent. 
B)  2.0 percent. 
C)  10 percent. 
D)  3.6 percent 
E)  33.7 percent..

The natural rate of unemployment is the unemployment rate that would exist in the absence of _____.

Which of the following is observed in an economy during the contraction phase of the business cycle?

Economists call a severe prolonged economic recession a:

Which of the following will be considered a lagging indicator of the business cycle?

If the inflation rate for a given year is 5 percent, then $1.00 in the previous year will buy goods worth approximately $0.95 this year.

The effect of _____ is to produce an unemployment rate that understates actual unemployment.

According to general trends in the incidence of unemployment across different demographic groups in the United States, which of the following groups have the lowest unemployment rates in the country?

When inflation is much higher than expected, which of the following is true?

The Wealth of Nations: Ownership and Economic Freedom

Scarcity and Opportunity Costs

The Market and Price System

The Aggregate Economy

National Income Accounting

An Introduction to the Foreign Exchapterange Market and the Balance of Payments

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Economic Growth

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchapterange Rates and Financial Links Between Countries

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Exam 7: Unemployment and Inflation

The natural rate of unemployment is the unemployment rate that would exist in the absence of _____.

Which of the following is observed in an economy during the contraction phase of the business cycle?

Economists call a severe prolonged economic recession a:

Which of the following will be considered a lagging indicator of the business cycle?

If the inflation rate for a given year is 5 percent, then $1.00 in the previous year will buy goods worth approximately $0.95 this year.

The effect of _____ is to produce an unemployment rate that understates actual unemployment.

According to general trends in the incidence of unemployment across different demographic groups in the United States, which of the following groups have the lowest unemployment rates in the country?

When inflation is much higher than expected, which of the following is true?

The Wealth of Nations: Ownership and Economic Freedom

Scarcity and Opportunity Costs

The Market and Price System

The Aggregate Economy

National Income Accounting

An Introduction to the Foreign Exchapterange Market and the Balance of Payments

Macroeconomic Equilibrium: Aggregate Demand and Supply

Aggregate Expenditures

Income and Expenditures Equilibrium

Fiscal Policy

Money and Banking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

Economic Growth

Development Economics

Globalization

World Trade Equilibrium

International Trade Restrictions

Exchapterange Rates and Financial Links Between Countries

Filters