Question 1

If the discouraged workers were included in the labor force,

Accepted Answer

A) the unemployment rate would fall. 
B) the labor force would decrease. 
C) the employment rate would rise. 
D) the unemployment rate would rise. 
A) the unemployment rate would fall. 
B) the labor force would decrease. 
C) the employment rate would rise. 
D) the unemployment rate would rise.

Question 2

If the price of pizzas has risen from $4 to $5 at the same time that the price of an hour of spinning class has risen from $20 to $30, then

Accepted Answer

A) pizzas have become relatively more expensive. 
B) spinning classes have become relatively more expensive. 
C) the relative prices of pizzas and spinning classes have remained constant. 
D) workers' real income must have decreased. 
A) pizzas have become relatively more expensive. 
B) spinning classes have become relatively more expensive. 
C) the relative prices of pizzas and spinning classes have remained constant. 
D) workers' real income must have decreased.

Question 3

If borrowers and lenders expect a higher rate of inflation,

Accepted Answer

A) nominal interest rates should decrease. 
B) nominal interest rates should remain constant. 
C) nominal interest rates should increase. 
D) real interest rates should increase. 
A) nominal interest rates should decrease. 
B) nominal interest rates should remain constant. 
C) nominal interest rates should increase. 
D) real interest rates should increase.

Question 4

If the capital stock decreases, then the economy will produce ____ output with the ____ amount of labor.

Accepted Answer

A) same, same 
B) less, same 
C) more, same 
D) more, decreased 
A) same, same 
B) less, same 
C) more, same 
D) more, decreased

Question 5

Workers are generally in a better position to protect themselves from inflation in comparison to retired persons because workers' incomes

Accepted Answer

A) are more likely to be fixed. 
B) are more likely to be variable. 
C) always rise during inflation. 
D) are guaranteed by the federal government. 
A) are more likely to be fixed. 
B) are more likely to be variable. 
C) always rise during inflation. 
D) are guaranteed by the federal government.

Question 6

Over long periods of time, the growth rates of actual and potential GDP have been

Accepted Answer

A) diverging. 
B) similar. 
C) declining together. 
D) usually far apart. 
A) diverging. 
B) similar. 
C) declining together. 
D) usually far apart.

Question 7

If a borrower arbitrarily gains purchasing power as the result of a particular loan agreement, then

Accepted Answer

A) actual inflation was greater than expected inflation. 
B) actual inflation was equal to expected inflation. 
C) actual inflation was less than expected inflation. 
D) the real interest rate was greater than the nominal interest rate. 
A) actual inflation was greater than expected inflation. 
B) actual inflation was equal to expected inflation. 
C) actual inflation was less than expected inflation. 
D) the real interest rate was greater than the nominal interest rate.

Question 8

An increase in capital stock will shift the production function

Accepted Answer

A) downward. 
B) rightward. 
C) upward. 
D) outward. 
A) downward. 
B) rightward. 
C) upward. 
D) outward.

Question 9

If ten years ago the price of a movie ticket was $5 and the average hourly wage was $10, and today the price of a movie ticket is $8 and the average hourly wage is $20, then

Accepted Answer

A) movies are now relatively cheaper in terms of work hours. 
B) movies are now relatively more expensive in terms of work hours. 
C) the relative price of movies has remained constant. 
D) workers now need to work longer hours to earn one movie ticket. 
A) movies are now relatively cheaper in terms of work hours. 
B) movies are now relatively more expensive in terms of work hours. 
C) the relative price of movies has remained constant. 
D) workers now need to work longer hours to earn one movie ticket.

Question 10

Economists generally assume that faster economic growth is negative for society.

Accepted Answer

A) True 
 B)False

Question 11

The term "unemployed" includes all people who want a job, but don't have one.

Accepted Answer

A) True 
 B)False

Question 12

Americans would probably be supportive of

Accepted Answer

A) strict controls on hours of work. 
B) limits on income potential. 
C) mandatory work limits. 
D) loose controls on economic activities. 
A) strict controls on hours of work. 
B) limits on income potential. 
C) mandatory work limits. 
D) loose controls on economic activities.

Question 13

Economic growth is most likely to solve the problems of

Accepted Answer

A) environmental pollution. 
B) world poverty. 
C) emotional stress. 
D) social alienation. 
A) environmental pollution. 
B) world poverty. 
C) emotional stress. 
D) social alienation.

Question 14

When governments rapidly increase the supply of money, the usual result is

Accepted Answer

A) deflation. 
B) low inflation. 
C) hyperinflation. 
D) increasing long-term investment. 
A) deflation. 
B) low inflation. 
C) hyperinflation. 
D) increasing long-term investment.

Question 15

Describe how the labor force, the nation's capital stock, and the rate of technical progress contribute to potential GDP growth and labor productivity.

Accepted Answer

Potential GDP growth depends on the grow

Question 16

Full employment is defined by most economists as the minimization of

Accepted Answer

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

Question 17

According to the U.S.Bureau of Labor Statistics, the term "employed" includes all full time workers and part-time workers.

Accepted Answer

A) True 
 B)False

Question 18

Some economists believe that technological progress could be increased if the federal government

Accepted Answer

A) nationalized research facilities. 
B) levied taxes on nominal capital gains. 
C) levied taxes on real capital gains. 
D) levied taxes on gross rather than net investment. 
A) nationalized research facilities. 
B) levied taxes on nominal capital gains. 
C) levied taxes on real capital gains. 
D) levied taxes on gross rather than net investment.

Question 19

Small differences in economic growth rates translate into significant differences in living standards.

Accepted Answer

A) True 
 B)False

Question 20

Someone unemployed for a long period of time due to technological change would be described as structurally unemployed.

Accepted Answer

A) True 
 B)False

Exam 23: The Goals of Macroeconomic Policy

If the discouraged workers were included in the labor force,

If the price of pizzas has risen from $4 to $5 at the same time that the price of an hour of spinning class has risen from $20 to $30, then

If borrowers and lenders expect a higher rate of inflation,

If the capital stock decreases, then the economy will produce ____ output with the ____ amount of labor.

Workers are generally in a better position to protect themselves from inflation in comparison to retired persons because workers' incomes

Over long periods of time, the growth rates of actual and potential GDP have been

If a borrower arbitrarily gains purchasing power as the result of a particular loan agreement, then

An increase in capital stock will shift the production function

If ten years ago the price of a movie ticket was $5 and the average hourly wage was $10, and today the price of a movie ticket is $8 and the average hourly wage is $20, then

Economists generally assume that faster economic growth is negative for society.

The term "unemployed" includes all people who want a job, but don't have one.

Americans would probably be supportive of

Economic growth is most likely to solve the problems of

When governments rapidly increase the supply of money, the usual result is

Describe how the labor force, the nation's capital stock, and the rate of technical progress contribute to potential GDP growth and labor productivity.

Full employment is defined by most economists as the minimization of

According to the U.S.Bureau of Labor Statistics, the term "employed" includes all full time workers and part-time workers.

Some economists believe that technological progress could be increased if the federal government

Small differences in economic growth rates translate into significant differences in living standards.

Someone unemployed for a long period of time due to technological change would be described as structurally unemployed.

What Is Economics

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: the Importance of Marginal Analysis

Securities: Business Finance and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets: the Price System

The Shortcomings of Free Markets

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

Poverty, Inequality, and Discrimination

Is Useconomic Leadership Threatened

An Introduction to Macroeconomics

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

He Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

Filters

If the capital stock decreases, then the economy will produce output with the amount of labor.