Exam 8: Economic Fluctuations, unemployment, and Inflation

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Virtually all economists and policy makers agree that,within limits,higher employment is better.If this is true,couldn't the government create more employment by hiring people to dig holes and fill them in again? Is this good economic policy?

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Question 1

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The fallacy in this policy is in believing that "jobs" are inherently valuable.This view is incorrect.Jobs are valuable only when they contribute to producing goods and services valued by society.Jobs are only a means to an end,and higher employment is only beneficial if it's accompanied by the efficient production of valuable goods and services.

The type of unemployment caused by changes in the business cycle is

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Which of the following is an example of someone with inflationary expectations taking a step designed to insulate themselves from the higher expected rates of inflation?

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The employment/population ratio identifies the proportion of the population age 16 and over that is

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Question 4

If an economy is at its potential output level,which of the following is not true?

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Question 5

Which of the following best explains why the rate of unemployment is highest among individuals aged 16 through 19?

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Question 6

Tara just graduated from college.In order to devote all her efforts to college,she didn't hold a job.She is going to cruise around the country on her motorcycle for awhile before she starts looking for work.As a result,the unemployment rate

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Question 7

Which of the following is true of high and variable rates of inflation?

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Question 8

Which type of unemployment is most likely to help the economy become more efficient?

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Question 9

The difference between actual real GDP and potential GDP

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Question 10

The natural rate of unemployment

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Question 11

Full employment means which of the following is zero?

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Question 12

Use the data below to answer the following question. Table 8-1 -Refer to Table 8-1.The figures above (in millions)are for the United States in 2003.The U.S.rates of labor force participation and unemployment equaled what percentages?

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Question 13

In the early 1990s,the U.S.government substantially reduced defense expenditures.The resulting unemployment of defense-related workers,who possessed skills no longer needed by the economy,is an example of

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Question 14

(I)Changes in the age composition of the labor force will affect the natural rate of unemployment (for example,an increase in the relative number of youthful workers). (II)Institutional changes such as an increase in the minimum wage may increase cyclical unemployment but will not affect the natural rate of unemployment.

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Question 15

The period of declining growth in real GDP between the peak of the business cycle and the trough is called the

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Question 16

Suppose there are 25,000 employed and 5,000 unemployed persons. a.What is the unemployment rate? b.If 2,000 of those unemployed became discouraged and quit actively seeking work,what would happen to the unemployment rate? Calculate the new unemployment rate.

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Question 17

The natural rate of unemployment is not zero because

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Question 18

Which type of unemployment is most closely connected with the saying "you can't teach an old dog new tricks"?

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Question 19

Which of the following is true?

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Question 20

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Exam 8: Economic Fluctuations, unemployment, and Inflation

Virtually all economists and policy makers agree that,within limits,higher employment is better.If this is true,couldn't the government create more employment by hiring people to dig holes and fill them in again? Is this good economic policy?

The type of unemployment caused by changes in the business cycle is

Which of the following is an example of someone with inflationary expectations taking a step designed to insulate themselves from the higher expected rates of inflation?

The employment/population ratio identifies the proportion of the population age 16 and over that is

If an economy is at its potential output level,which of the following is not true?

Which of the following best explains why the rate of unemployment is highest among individuals aged 16 through 19?

Tara just graduated from college.In order to devote all her efforts to college,she didn't hold a job.She is going to cruise around the country on her motorcycle for awhile before she starts looking for work.As a result,the unemployment rate

Which of the following is true of high and variable rates of inflation?

Which type of unemployment is most likely to help the economy become more efficient?

The difference between actual real GDP and potential GDP

The natural rate of unemployment

Full employment means which of the following is zero?

Use the data below to answer the following question. Table 8-1 -Refer to Table 8-1.The figures above (in millions)are for the United States in 2003.The U.S.rates of labor force participation and unemployment equaled what percentages?

In the early 1990s,the U.S.government substantially reduced defense expenditures.The resulting unemployment of defense-related workers,who possessed skills no longer needed by the economy,is an example of

The period of declining growth in real GDP between the peak of the business cycle and the trough is called the

Suppose there are 25,000 employed and 5,000 unemployed persons. a.What is the unemployment rate? b.If 2,000 of those unemployed became discouraged and quit actively seeking work,what would happen to the unemployment rate? Calculate the new unemployment rate.

The natural rate of unemployment is not zero because

Which type of unemployment is most closely connected with the saying "you can't teach an old dog new tricks"?

Which of the following is true?

The Economic Approach

Asome Tools of the Economist

Asupply,demand,and the Market Process

Asupply and Demand: Applications and Extensions

Difficult Cases for the Market and the Role of Government

The Economics of Collective Decision-Making

Ataking the Nations Economic Pulse

Aan Introduction to Basic Macroeconomic Markets

Dynamic Change, economic Fluctuations, and the Ad-As Model

Fiscal Policy: the Keynesian View and Historical Perspective

Fiscal Policy, incentives, and Secondary Effects

Amoney and the Banking System

Modern Macroeconomics and Monetary Policy

Stabilization Policy, output, and Employment

Creating an Environment for Growth and Prosperity

Institutions,policies,and Cross-Country Differences in Income and Growth

Gaining From International Trade

International Finance and the Foreign Exchange Market

Consumer Choice and Elasticity

Acosts and the Supply of Goods

Aprice Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

Aprice-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Government Spending and Taxation

The Economics of Social Security

The Stock Market: Its Function, Performance, and Potential As an Investment Opportunity

Great Debates in Economics: Keynes Versus Hayek

The Crisis of 2008: Causes and Lessons for the Future

Lessons From the Great Depression

Lessons From Japan and Canada

The Federal Budget and the National Debt

The Economics of Healthcare

Education: Problems and Performance

Earnings Differences Between Men and Women

Do Labor Unions Increase the Wages of Workers

The Question of Resource Exhaustion

Difficult Environmental Cases and the Role of Government

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