Question 1

Adjustable rate mortgages (ARMs)

Accepted Answer

A)  were first introduced in the 1960s 
B)  offer a variable interest rate that is tied to another interest rate such as Treasury securities 
C)  usually have higher rates and higher closing costs than fixed rate mortgages 
D)  have no caps on interest that can be charged over the life of the mortgage 
A)  were first introduced in the 1960s 
B)  offer a variable interest rate that is tied to another interest rate such as Treasury securities 
C)  usually have higher rates and higher closing costs than fixed rate mortgages 
D)  have no caps on interest that can be charged over the life of the mortgage

Question 2

Cost-push inflation would be the result of a(n)

Accepted Answer

A)  increase in the economy's level of total spending 
B)  increase in the economy's level of employment 
C)  decrease in the economy's productivity 
D)  decrease in the resource prices of the economy 
A)  increase in the economy's level of total spending 
B)  increase in the economy's level of employment 
C)  decrease in the economy's productivity 
D)  decrease in the resource prices of the economy

Question 3

During the ______ stage of a business cycle, real GDP increases, industrial output expands, profits usually increase, and employment moves toward full employment.

Accepted Answer

A)  peak 
B)  recovery 
C)  recession 
D)  trough 
A)  peak 
B)  recovery 
C)  recession 
D)  trough

Question 4

Suppose that of all adult Americans, 140 million are employed, 10 million are unemployed and actively seek jobs, 5 million are not in the labor force, and 10 million are part-time workers looking for full-time jobs. The unemployment rate equals

Accepted Answer

A)  4.4 percent 
B)  5.5 percent 
C)  6.7 percent 
D)  7.3 percent 
A)  4.4 percent 
B)  5.5 percent 
C)  6.7 percent 
D)  7.3 percent

Question 5

For the consumer price index to register inflation, the prices of all goods and services must increase over a period of time.

Accepted Answer

A) True 
 B)False

Question 6

The low point of real GDP, just before it begins to turn up, is called the ______ of a business cycle.

Accepted Answer

A)  recession 
B)  depression 
C)  peak 
D)  trough 
A)  recession 
B)  depression 
C)  peak 
D)  trough

Question 7

Nominal income is the actual number of dollars of income received during a year. Real income is the actual number of dollars received, adjusted for any change in price.

Accepted Answer

A) True 
 B)False

Adjustable rate mortgages (ARMs)

Cost-push inflation would be the result of a(n)

During the ______ stage of a business cycle, real GDP increases, industrial output expands, profits usually increase, and employment moves toward full employment.

Suppose that of all adult Americans, 140 million are employed, 10 million are unemployed and actively seek jobs, 5 million are not in the labor force, and 10 million are part-time workers looking for full-time jobs. The unemployment rate equals

For the consumer price index to register inflation, the prices of all goods and services must increase over a period of time.

The low point of real GDP, just before it begins to turn up, is called the ______ of a business cycle.

Nominal income is the actual number of dollars of income received during a year. Real income is the actual number of dollars received, adjusted for any change in price.

Scarcity and Choice

Market Transactions: Demand and Supply Analysis

Demand and Supply Applications

Production and the Costs of Production

Competition and Monopoly: Virtues and Vices

Imperfect Competition

Labor Markets

Government and Markets

The Mixed Economy of the United States

Gross Domestic Product and Economic Growth

Macroeconomic Instability: Aggregate Demand and Aggregate Supply

Fiscal Policy and the Federal Budget

Money and the Banking System

The Federal Reserve and Monetary Policy

The United States and the Global Economy

International Finance

Economic Systems and Developing Countries

Filters

Exam 11: The Business Cycle, Unemployment, and Inflation

Adjustable rate mortgages (ARMs)

Cost-push inflation would be the result of a(n)

During the ______ stage of a business cycle, real GDP increases, industrial output expands, profits usually increase, and employment moves toward full employment.

Suppose that of all adult Americans, 140 million are employed, 10 million are unemployed and actively seek jobs, 5 million are not in the labor force, and 10 million are part-time workers looking for full-time jobs. The unemployment rate equals

For the consumer price index to register inflation, the prices of all goods and services must increase over a period of time.

The low point of real GDP, just before it begins to turn up, is called the ______ of a business cycle.

Nominal income is the actual number of dollars of income received during a year. Real income is the actual number of dollars received, adjusted for any change in price.

Scarcity and Choice

Market Transactions: Demand and Supply Analysis

Demand and Supply Applications

Production and the Costs of Production

Competition and Monopoly: Virtues and Vices

Imperfect Competition

Labor Markets

Government and Markets

The Mixed Economy of the United States

Gross Domestic Product and Economic Growth

Macroeconomic Instability: Aggregate Demand and Aggregate Supply

Fiscal Policy and the Federal Budget

Money and the Banking System

The Federal Reserve and Monetary Policy

The United States and the Global Economy

International Finance

Economic Systems and Developing Countries

Filters