Question 1

Table 20-1
   
Consider the data above for a simple economy.
-Refer to Table 20-1.The labor force participation rate for this simple economy equals

Accepted Answer

A)  (1,000/1,100) × 100. 
B)  (1,000/15,000) × 100. 
C)  (1,100/15,000) × 100. 
D)  (1,100/20,000) × 100. 
A)  (1,000/1,100) × 100. 
B)  (1,000/15,000) × 100. 
C)  (1,100/15,000) × 100. 
D)  (1,100/20,000) × 100.

Question 2

After the recession of 2007-2009,the unemployment rate peaked at 10.1 percent in October 2009.23 months later,it had

Accepted Answer

A)  dropped by 50 percent. 
B)  declined by only 1 percentage point. 
C)  remained at 10.1 percent. 
D)  fallen to the natural rate of unemployment. 
A)  dropped by 50 percent. 
B)  declined by only 1 percentage point. 
C)  remained at 10.1 percent. 
D)  fallen to the natural rate of unemployment.

Question 3

Most of the unemployment that occurred during the Great Depression was

Accepted Answer

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

Question 4

In the modern U.S.economy,the typical unemployed person stays unemployed for

Accepted Answer

A)  a relatively long time, over a year. 
B)  a relatively short time, less than six months. 
C)  for a long time during expansions and short time during recessions. 
D)  an amount of time that is hard to quantify. 
A)  a relatively long time, over a year. 
B)  a relatively short time, less than six months. 
C)  for a long time during expansions and short time during recessions. 
D)  an amount of time that is hard to quantify.

Question 5

Suppose you borrow $1,000 at an interest rate of 12 percent.If the expected real interest rate is 5 percent,then the rate of inflation over the upcoming year that would be most beneficial to you would be a rate of inflation

Accepted Answer

A)  equal to 0 percent. 
B)  greater than 7 percent. 
C)  equal to 7 percent. 
D)  less than 7 percent. 
A)  equal to 0 percent. 
B)  greater than 7 percent. 
C)  equal to 7 percent. 
D)  less than 7 percent.

Question 6

During the Great Depression,cyclical unemployment increased as the recession continued.This increase in cyclical unemployment

Accepted Answer

A)  increased the natural rate of unemployment. 
B)  decreased the natural rate of unemployment. 
C)  had no effect on the natural rate of unemployment. 
D)  could have increased or decreased the natural rate of unemployment. 
A)  increased the natural rate of unemployment. 
B)  decreased the natural rate of unemployment. 
C)  had no effect on the natural rate of unemployment. 
D)  could have increased or decreased the natural rate of unemployment.

Question 7

Frictional unemployment is the result of

Accepted Answer

A)  a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. 
B)  the search process of matching workers with jobs. 
C)  the ups and downs in inflation. 
D)  a slowdown in the economy. 
A)  a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. 
B)  the search process of matching workers with jobs. 
C)  the ups and downs in inflation. 
D)  a slowdown in the economy.

Question 8

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

Accepted Answer

A)  times 
B)  divided by 
C)  plus 
D)  minus 
A)  times 
B)  divided by 
C)  plus 
D)  minus

Question 9

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 10

If the price level rose in three consecutive years from 100 to 120 to 140,then the annual inflation rate over those years would

Accepted Answer

A)  increase. 
B)  remain the same. 
C)  decrease. 
D)  equal 20%. 
A)  increase. 
B)  remain the same. 
C)  decrease. 
D)  equal 20%.

Question 11

Currently,the base year for the CPI is the average of prices in the years 1982 to 1984.

Accepted Answer

A) True 
 B)False

Question 12

The reasons why someone cannot get a job are similar to the reasons why someone cannot get a date.Using the ideas of frictionally unemployed,structurally unemployed,and cyclically unemployed,describe and explain how a student at your university might be frictionally "undated," structurally "undated," and cyclically "undated."

Accepted Answer

The frictionally "undated" student does

Question 13

The increased generosity of unemployment insurance programs in Canada as compared to the United States should

Accepted Answer

A)  decrease the duration of unemployment in Canada as compared to the United States. 
B)  increase the duration of unemployment in Canada as compared to the United States. 
C)  have no impact on the duration of unemployment in Canada. 
D)  raise the duration of unemployment in the United States. 
A)  decrease the duration of unemployment in Canada as compared to the United States. 
B)  increase the duration of unemployment in Canada as compared to the United States. 
C)  have no impact on the duration of unemployment in Canada. 
D)  raise the duration of unemployment in the United States.

Question 14

Most economists believe that the biases in the consumer price index cause the CPI to overstate the true inflation rate by about

Accepted Answer

A)  one-half to one percentage point. 
B)  one to two percentage points. 
C)  one quarter percentage point. 
D)  one and one-half percentage points. 
A)  one-half to one percentage point. 
B)  one to two percentage points. 
C)  one quarter percentage point. 
D)  one and one-half percentage points.

Question 15

A lumberjack loses his job because timber cutting restrictions were imposed by the EPA to protect the spotted owl habitat.This lumberjack would be

Accepted Answer

A)  frictionally unemployed. 
B)  cyclically unemployed. 
C)  structurally unemployed. 
D)  seasonally unemployed. 
A)  frictionally unemployed. 
B)  cyclically unemployed. 
C)  structurally unemployed. 
D)  seasonally unemployed.

Question 16

What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?

Accepted Answer

Workers in Western Europe and Canada are

Question 17

Which of the following would increase the unemployment rate?

Accepted Answer

A)  a law making it illegal to work more than 35 hours per week 
B)  a cut in unemployment compensation 
C)  an increase in unemployment insurance payments 
D)  a decrease in the minimum wage 
A)  a law making it illegal to work more than 35 hours per week 
B)  a cut in unemployment compensation 
C)  an increase in unemployment insurance payments 
D)  a decrease in the minimum wage

Question 18

Using a broader measure of the unemployment rate where discouraged workers and part-time workers who wished to work full time were counted as unemployed,the BLS estimates the unemployment rate in September 2011 would have ________ compared to the measured unemployment rate.

Accepted Answer

A)  increased by more that 7 percentage points 
B)  more than doubled 
C)  decreased by less than 1 percentage point 
D)  barely changed 
A)  increased by more that 7 percentage points 
B)  more than doubled 
C)  decreased by less than 1 percentage point 
D)  barely changed

Question 19

Table 20-6
  
-Refer to Table 20-6.Consider the following values of the consumer price index for 1996,1997,and 1998: The inflation rate for 1997 was equal to

Accepted Answer

A)  1.2 percent. 
B)  2.0 percent. 
C)  2.5 percent. 
D)  4.0 percent. 
A)  1.2 percent. 
B)  2.0 percent. 
C)  2.5 percent. 
D)  4.0 percent.

Question 20

The labor force participation rates of women have rapidly increased since 1948.

Accepted Answer

A) True 
 B)False

Table 20-1 Consider the data above for a simple economy. -Refer to Table 20-1.The labor force participation rate for this simple economy equals

After the recession of 2007-2009,the unemployment rate peaked at 10.1 percent in October 2009.23 months later,it had

Most of the unemployment that occurred during the Great Depression was

In the modern U.S.economy,the typical unemployed person stays unemployed for

Suppose you borrow $1,000 at an interest rate of 12 percent.If the expected real interest rate is 5 percent,then the rate of inflation over the upcoming year that would be most beneficial to you would be a rate of inflation

During the Great Depression,cyclical unemployment increased as the recession continued.This increase in cyclical unemployment

Frictional unemployment is the result of

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

If the price level rose in three consecutive years from 100 to 120 to 140,then the annual inflation rate over those years would

Currently,the base year for the CPI is the average of prices in the years 1982 to 1984.

The increased generosity of unemployment insurance programs in Canada as compared to the United States should

Most economists believe that the biases in the consumer price index cause the CPI to overstate the true inflation rate by about

A lumberjack loses his job because timber cutting restrictions were imposed by the EPA to protect the spotted owl habitat.This lumberjack would be

What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?

Which of the following would increase the unemployment rate?

Using a broader measure of the unemployment rate where discouraged workers and part-time workers who wished to work full time were counted as unemployed,the BLS estimates the unemployment rate in September 2011 would have ________ compared to the measured unemployment rate.

Table 20-6 -Refer to Table 20-6.Consider the following values of the consumer price index for 1996,1997,and 1998: The inflation rate for 1997 was equal to

The labor force participation rates of women have rapidly increased since 1948.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 9: Unemployment and Inflation

Table 20-1 Consider the data above for a simple economy. -Refer to Table 20-1.The labor force participation rate for this simple economy equals

After the recession of 2007-2009,the unemployment rate peaked at 10.1 percent in October 2009.23 months later,it had

Most of the unemployment that occurred during the Great Depression was

In the modern U.S.economy,the typical unemployed person stays unemployed for

Suppose you borrow $1,000 at an interest rate of 12 percent.If the expected real interest rate is 5 percent,then the rate of inflation over the upcoming year that would be most beneficial to you would be a rate of inflation

During the Great Depression,cyclical unemployment increased as the recession continued.This increase in cyclical unemployment

Frictional unemployment is the result of

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

If the price level rose in three consecutive years from 100 to 120 to 140,then the annual inflation rate over those years would

Currently,the base year for the CPI is the average of prices in the years 1982 to 1984.

The increased generosity of unemployment insurance programs in Canada as compared to the United States should

Most economists believe that the biases in the consumer price index cause the CPI to overstate the true inflation rate by about

A lumberjack loses his job because timber cutting restrictions were imposed by the EPA to protect the spotted owl habitat.This lumberjack would be

What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?

Which of the following would increase the unemployment rate?

Using a broader measure of the unemployment rate where discouraged workers and part-time workers who wished to work full time were counted as unemployed,the BLS estimates the unemployment rate in September 2011 would have ________ compared to the measured unemployment rate.

Table 20-6 -Refer to Table 20-6.Consider the following values of the consumer price index for 1996,1997,and 1998: The inflation rate for 1997 was equal to

The labor force participation rates of women have rapidly increased since 1948.

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

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 .