Question 1

How will increased usage of the Internet by employers and employees influence the job search process?

Accepted Answer

A) It will make job-related information more costly and,therefore,tend to increase the rate of unemployment. 
B) It will make job-related information less costly and,therefore,tend to increase the rate of unemployment. 
C) It will make job-related information more costly and,therefore,tend to reduce the rate of unemployment. 
D) It will make job-related information less costly and,therefore,tend to reduce the rate of unemployment. 
A) It will make job-related information more costly and,therefore,tend to increase the rate of unemployment. 
B) It will make job-related information less costly and,therefore,tend to increase the rate of unemployment. 
C) It will make job-related information more costly and,therefore,tend to reduce the rate of unemployment. 
D) It will make job-related information less costly and,therefore,tend to reduce the rate of unemployment.

Question 2

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

Accepted Answer

A) Actual unemployment is equal to the natural rate of unemployment. 
B) The unemployment rate is about 2 percent. 
C) The economy is producing its maximum sustainable output. 
D) The actual price level equals the expected price level. 
A) Actual unemployment is equal to the natural rate of unemployment. 
B) The unemployment rate is about 2 percent. 
C) The economy is producing its maximum sustainable output. 
D) The actual price level equals the expected price level.

Question 3

A decrease in aggregate demand and the subsequent cutbacks in production lead to

Accepted Answer

A) frictional unemployment. 
B) cyclical unemployment. 
C) cost-push unemployment. 
D) structural unemployment. 
E) transitory unemployment. 
A) frictional unemployment. 
B) cyclical unemployment. 
C) cost-push unemployment. 
D) structural unemployment. 
E) transitory unemployment.

Question 4

Which of the following is true?

Accepted Answer

A) During a recession,actual GDP will exceed potential GDP. 
B) Actual GDP cannot exceed potential GDP,even for short periods. 
C) Actual output may be either above or below potential output depending on how fully resources are utilized. 
D) The economy's potential output is the maximum output that could be achieved temporarily during a time of economic boom. 
A) During a recession,actual GDP will exceed potential GDP. 
B) Actual GDP cannot exceed potential GDP,even for short periods. 
C) Actual output may be either above or below potential output depending on how fully resources are utilized. 
D) The economy's potential output is the maximum output that could be achieved temporarily during a time of economic boom.

Question 5

The current U.S.unemployment insurance program

Accepted Answer

A) tends to significantly lower the unemployment rate. 
B) tends to modestly lower the unemployment rate. 
C) has no effect on the unemployment rate. 
D) tends to raise the unemployment rate. 
A) tends to significantly lower the unemployment rate. 
B) tends to modestly lower the unemployment rate. 
C) has no effect on the unemployment rate. 
D) tends to raise the unemployment rate.

Question 6

The labor force participation rate is

Accepted Answer

A) the number of persons employed divided by the number of persons unemployed. 
B) the number of persons 16 years of age and older who are either employed or actively seeking work divided by the total noninstitutional population 16 years of age and older. 
C) the number of persons employed divided by the number of persons 16 years of age and older. 
D) the number of persons who are actively seeking work divided by the number of persons who are employed. 
A) the number of persons employed divided by the number of persons unemployed. 
B) the number of persons 16 years of age and older who are either employed or actively seeking work divided by the total noninstitutional population 16 years of age and older. 
C) the number of persons employed divided by the number of persons 16 years of age and older. 
D) the number of persons who are actively seeking work divided by the number of persons who are employed.

Question 7

Frictional unemployment results from

Accepted Answer

A) not enough jobs in the economy. 
B) not enough employers. 
C) not enough employees. 
D) scarce information about job opportunities and the time it takes to acquire that information. 
A) not enough jobs in the economy. 
B) not enough employers. 
C) not enough employees. 
D) scarce information about job opportunities and the time it takes to acquire that information.

Question 8

Older Americans living on a pension and therefore on a fixed income,tend to be made

Accepted Answer

A) better off when prices rise. 
B) better off when the inflation rate rises. 
C) worse off when prices rise. 
D) worse off when prices fall. 
A) better off when prices rise. 
B) better off when the inflation rate rises. 
C) worse off when prices rise. 
D) worse off when prices fall.

Question 9

The employment/population ratio is the number of persons employed divided by the number of persons

Accepted Answer

A) in the labor force. 
B) unemployed. 
C) employed plus the number unemployed. 
D) in the civilian population age 16 and over. 
A) in the labor force. 
B) unemployed. 
C) employed plus the number unemployed. 
D) in the civilian population age 16 and over.

Question 10

Which of the following would be most likely to reduce the rate of unemployment?

Accepted Answer

A) a business recession 
B) an Internet job listing system that makes it easier to get information about job openings and available employees 
C) an increase in unemployment compensation benefits 
D) a rise in the minimum wage 
A) a business recession 
B) an Internet job listing system that makes it easier to get information about job openings and available employees 
C) an increase in unemployment compensation benefits 
D) a rise in the minimum wage

Question 11

Which of the following is true?

Accepted Answer

A) Anticipated inflation is an increase in the price level that comes as a surprise,at least to most individuals. 
B) Unanticipated inflation is a change in the price level that is widely expected. 
C) When the inflation rate is high and variable,decision makers will generally be able to anticipate year-to-year changes in inflation quite accurately. 
D) Inflation will tend to increase the nominal values of both prices and wages. 
A) Anticipated inflation is an increase in the price level that comes as a surprise,at least to most individuals. 
B) Unanticipated inflation is a change in the price level that is widely expected. 
C) When the inflation rate is high and variable,decision makers will generally be able to anticipate year-to-year changes in inflation quite accurately. 
D) Inflation will tend to increase the nominal values of both prices and wages.

Question 12

Which of the following is true?

Accepted Answer

A) During a boom,the natural rate of unemployment falls below the actual rate of unemployment. 
B) During a boom,the output of the economy will exceed its long-run potential output. 
C) During a boom,there will be widespread unemployment. 
D) During a boom,the actual rate of unemployment will exceed the natural rate of unemployment. 
A) During a boom,the natural rate of unemployment falls below the actual rate of unemployment. 
B) During a boom,the output of the economy will exceed its long-run potential output. 
C) During a boom,there will be widespread unemployment. 
D) During a boom,the actual rate of unemployment will exceed the natural rate of unemployment.

Question 13

The primary cause of frictional unemployment is

Accepted Answer

A) the low level of the current minimum wages. 
B) the lack of and cost of acquiring information about available job opportunities. 
C) a mismatch of the skills of unemployed workers with the skills needed for job openings. 
D) discouraged workers who quit looking for a job after extended periods of unsuccessful job search. 
A) the low level of the current minimum wages. 
B) the lack of and cost of acquiring information about available job opportunities. 
C) a mismatch of the skills of unemployed workers with the skills needed for job openings. 
D) discouraged workers who quit looking for a job after extended periods of unsuccessful job search.

Question 14

Which of the following is true?

Accepted Answer

A) Anticipated inflation is an increase in the price level that comes as a surprise,at least to most individuals. 
B) Unanticipated inflation is a change in the price level that is widely expected. 
C) Decision makers are generally able to anticipate slow steady rates of inflation with a fairly high degree of accuracy. 
D) Inflation will increase the prices of goods and services that households purchase but not the wage rates of workers. 
A) Anticipated inflation is an increase in the price level that comes as a surprise,at least to most individuals. 
B) Unanticipated inflation is a change in the price level that is widely expected. 
C) Decision makers are generally able to anticipate slow steady rates of inflation with a fairly high degree of accuracy. 
D) Inflation will increase the prices of goods and services that households purchase but not the wage rates of workers.

Question 15

Which one of the following persons would be considered employed?

Accepted Answer

A) a retired construction worker 
B) a part-time worker looking for a full-time job 
C) a construction worker laid off due to cold weather 
D) a full-time college student who is not a member of the labor force 
A) a retired construction worker 
B) a part-time worker looking for a full-time job 
C) a construction worker laid off due to cold weather 
D) a full-time college student who is not a member of the labor force

Question 16

Suppose that the consumer price index at year-end 2008 was 140 and by year-end 2009 had risen to 150.What was the inflation rate during 2009?

Accepted Answer

A) 7.1 percent 
B) 10 percent 
C) 14.2 percent 
D) 50 percent 
A) 7.1 percent 
B) 10 percent 
C) 14.2 percent 
D) 50 percent

Question 17

The distinguishing characteristics of business cycles are

Accepted Answer

A) periods of inflation followed by periods of deflation. 
B) high rates of economic growth coupled with high rates of unemployment. 
C) a constant rate of economic growth coupled with ups and downs in the general level of prices. 
D) periods of growth in real output followed by periods of decline. 
A) periods of inflation followed by periods of deflation. 
B) high rates of economic growth coupled with high rates of unemployment. 
C) a constant rate of economic growth coupled with ups and downs in the general level of prices. 
D) periods of growth in real output followed by periods of decline.

Question 18

Sally is on a temporary layoff from her factory job.If Sally participates in the BLS survey,she will be classified as

Accepted Answer

A) unemployed and in the labor force. 
B) unemployed and out of the labor force. 
C) employed and in the labor force. 
D) employed and out of the labor force. 
A) unemployed and in the labor force. 
B) unemployed and out of the labor force. 
C) employed and in the labor force. 
D) employed and out of the labor force.

Question 19

Which of the following is true?

Accepted Answer

A) When a dynamic labor market is operating efficiently,mostly cyclical unemployment will be present. 
B) Some unemployment will be present even when a dynamic labor market is operating efficiently. 
C) When full employment is present,the rate of unemployment will be zero. 
D) When full employment is present,there will not be any frictional unemployment. 
E) When full employment is present,it will be impossible to sustain the current rate of output in the future. 
A) When a dynamic labor market is operating efficiently,mostly cyclical unemployment will be present. 
B) Some unemployment will be present even when a dynamic labor market is operating efficiently. 
C) When full employment is present,the rate of unemployment will be zero. 
D) When full employment is present,there will not be any frictional unemployment. 
E) When full employment is present,it will be impossible to sustain the current rate of output in the future.

Question 20

Which of the following will most likely occur during the contractionary phase of a business cycle?

Accepted Answer

A) Real GDP rises,and the unemployment rate falls. 
B) Real GDP declines,and the rate of inflation rises. 
C) The sales of most businesses decline,and the unemployment rate rises. 
D) Inflation rises,and employment/population ratio falls. 
A) Real GDP rises,and the unemployment rate falls. 
B) Real GDP declines,and the rate of inflation rises. 
C) The sales of most businesses decline,and the unemployment rate rises. 
D) Inflation rises,and employment/population ratio falls.

Exam 8: Economic Fluctuations, unemployment, and Inflation

How will increased usage of the Internet by employers and employees influence the job search process?

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

A decrease in aggregate demand and the subsequent cutbacks in production lead to

Which of the following is true?

The current U.S.unemployment insurance program

The labor force participation rate is

Frictional unemployment results from

Older Americans living on a pension and therefore on a fixed income,tend to be made

The employment/population ratio is the number of persons employed divided by the number of persons

Which of the following would be most likely to reduce the rate of unemployment?

Which of the following is true?

Which of the following is true?

The primary cause of frictional unemployment is

Which of the following is true?

Which one of the following persons would be considered employed?

Suppose that the consumer price index at year-end 2008 was 140 and by year-end 2009 had risen to 150.What was the inflation rate during 2009?

The distinguishing characteristics of business cycles are

Sally is on a temporary layoff from her factory job.If Sally participates in the BLS survey,she will be classified as

Which of the following is true?

Which of the following will most likely occur during the contractionary phase of a business cycle?

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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