Question 1

The nominal interest rate plus the inflation rate equals the real interest rate.

Accepted Answer

A) True 
 B)False

Question 2

Jack lost his job six months ago,and he's been actively looking for a new job ever since.The Bureau of Labor Statistics would classify Jack as

Accepted Answer

A) unemployed. 
B) out of the labor force. 
C) a discouraged worker. 
D) all of the above. 
A) unemployed. 
B) out of the labor force. 
C) a discouraged worker. 
D) all of the above.

Question 3

If your nominal wage rises more slowly than the price level,we can say your real wage has ________ and the purchasing power of a dollar has ________.

Accepted Answer

A) fallen; fallen 
B) fallen; risen 
C) risen; risen 
D) risen; fallen 
A) fallen; fallen 
B) fallen; risen 
C) risen; risen 
D) risen; fallen

Question 4

If firms pay what are called "efficiency wages," they pay wages that

Accepted Answer

A) motivate workers to increase their productivity. 
B) are lower than average to ensure maximum profit. 
C) will eventually lower the unemployment rate. 
D) are mandated by the government. 
A) motivate workers to increase their productivity. 
B) are lower than average to ensure maximum profit. 
C) will eventually lower the unemployment rate. 
D) are mandated by the government.

Question 5

Suppose 180,000 people are employed,20,000 people are unemployed,and 50,000 people are out of the labor force,then calculate the labor force participation rate.

Accepted Answer

The labor force participation rate is ca

Question 6

You lend $5,000 to a friend for one year at a nominal interest rate of 10%.Inflation during that year is 5%.As a result,you will receive ________ at the end of the year,but that money has a purchasing power of ________.

Accepted Answer

A) $5,050; $5,025 
B) $5,100; $5,050 
C) $5,500; $5,250 
D) $6,000; $5,500 
A) $5,050; $5,025 
B) $5,100; $5,050 
C) $5,500; $5,250 
D) $6,000; $5,500

Question 7

In recent years,economists have come to rely more on the establishment survey rather than the household survey to analyze current labor market statistics.

Accepted Answer

A) True 
 B)False

Question 8

Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower

Accepted Answer

A) frictional unemployment. 
B) structural unemployment. 
C) cyclical unemployment. 
D) seasonal unemployment. 
E) unnatural unemployment. 
A) frictional unemployment. 
B) structural unemployment. 
C) cyclical unemployment. 
D) seasonal unemployment. 
E) unnatural unemployment.

Question 9

Which of the following describes a situation in which the person is hurt by inflation?

Accepted Answer

A) a retiree whose pension is adjusted for inflation 
B) a person who borrows money during a period when inflation is under-predicted 
C) a person who lends money during a period when inflation is over-predicted 
D) a person paid a fixed income during an inflationary period 
A) a retiree whose pension is adjusted for inflation 
B) a person who borrows money during a period when inflation is under-predicted 
C) a person who lends money during a period when inflation is over-predicted 
D) a person paid a fixed income during an inflationary period

Question 10

The household survey is compiled from firms who answer questions about the number of persons who are employed and on the company payroll.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following policies would reduce structural unemployment?

Accepted Answer

A) an increase in the minimum wage 
B) a job retraining program 
C) implementing an unemployment insurance policy 
D) building an on-line job database that helps workers find jobs 
A) an increase in the minimum wage 
B) a job retraining program 
C) implementing an unemployment insurance policy 
D) building an on-line job database that helps workers find jobs

Question 12

Most economists believe that biases cause changes in the CPI to overstate the inflation rate by ________ percentage points.

Accepted Answer

A) 0.1 to 0.2 
B) 0.2 to 2.0 
C) 0.4 
D) 0.5 to 1.0 
E) 1.0 to 3.0 
A) 0.1 to 0.2 
B) 0.2 to 2.0 
C) 0.4 
D) 0.5 to 1.0 
E) 1.0 to 3.0

The nominal interest rate plus the inflation rate equals the real interest rate.

Jack lost his job six months ago,and he's been actively looking for a new job ever since.The Bureau of Labor Statistics would classify Jack as

If your nominal wage rises more slowly than the price level,we can say your real wage has and the purchasing power of a dollar has .

If firms pay what are called "efficiency wages," they pay wages that

Suppose 180,000 people are employed,20,000 people are unemployed,and 50,000 people are out of the labor force,then calculate the labor force participation rate.

You lend $5,000 to a friend for one year at a nominal interest rate of 10%.Inflation during that year is 5%.As a result,you will receive at the end of the year,but that money has a purchasing power of .

In recent years,economists have come to rely more on the establishment survey rather than the household survey to analyze current labor market statistics.

Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower

Which of the following describes a situation in which the person is hurt by inflation?

The household survey is compiled from firms who answer questions about the number of persons who are employed and on the company payroll.

Which of the following policies would reduce structural unemployment?

Most economists believe that biases cause changes in the CPI to overstate the inflation rate by ________ percentage points.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

Exam 13: Unemployment and Inflation

The nominal interest rate plus the inflation rate equals the real interest rate.

Jack lost his job six months ago,and he's been actively looking for a new job ever since.The Bureau of Labor Statistics would classify Jack as

If your nominal wage rises more slowly than the price level,we can say your real wage has ________ and the purchasing power of a dollar has ________.

If firms pay what are called "efficiency wages," they pay wages that

Suppose 180,000 people are employed,20,000 people are unemployed,and 50,000 people are out of the labor force,then calculate the labor force participation rate.

You lend $5,000 to a friend for one year at a nominal interest rate of 10%.Inflation during that year is 5%.As a result,you will receive ________ at the end of the year,but that money has a purchasing power of ________.

In recent years,economists have come to rely more on the establishment survey rather than the household survey to analyze current labor market statistics.

Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower

Which of the following describes a situation in which the person is hurt by inflation?

The household survey is compiled from firms who answer questions about the number of persons who are employed and on the company payroll.

Which of the following policies would reduce structural unemployment?

Most economists believe that biases cause changes in the CPI to overstate the inflation rate by ________ percentage points.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Market Efficiency and Market Failure

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Consumer Choice and Elasticity

Technology, production, and Costs

Firms in Perfectly Competitive Markets

Monopoly and Antitrust Policy

Monopolistic Competition and Oligopoly

Gdp: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Aggregate Demand and Aggregate Supply Analysis

Money, banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Comparative Advantage, international Trade, and Exchange Rates

Filters

If your nominal wage rises more slowly than the price level,we can say your real wage has and the purchasing power of a dollar has .

You lend $5,000 to a friend for one year at a nominal interest rate of 10%.Inflation during that year is 5%.As a result,you will receive at the end of the year,but that money has a purchasing power of .