Question 1

In September 2011,Bank of America laid off 30,000 employees.The employees who were laid off due to the effects of the recession would be considered

Accepted Answer

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

Question 2

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

Question 3

If the number of unemployed workers is 200 million,the number of employed workers is 300 million,and the working-age population is 800 million,what is the labor force participation rate?

Accepted Answer

A)  12.5% 
B)  37.5% 
C)  40% 
D)  62.5% 
A)  12.5% 
B)  37.5% 
C)  40% 
D)  62.5%

Question 4

The labor force participation rate is defined as

Accepted Answer

A)  the percentage of the working-age population that is employed. 
B)  the percentage of the working-age population that is unemployed. 
C)  the percentage of the labor force that is employed. 
D)  the percentage of the labor force that is unemployed. 
E)  the percentage of the working-age population in the labor force. 
A)  the percentage of the working-age population that is employed. 
B)  the percentage of the working-age population that is unemployed. 
C)  the percentage of the labor force that is employed. 
D)  the percentage of the labor force that is unemployed. 
E)  the percentage of the working-age population in the labor force.

Question 5

You agree to lend $1,000 for one year at a nominal interest rate of 10%.You anticipate that inflation will be 4% over that year.If inflation is instead 3% over that year,which of the following is true?

Accepted Answer

A)  The real interest rate you earn on your money is lower than you expected. 
B)  The purchasing power of the money that will be repaid to you will be lower than you expected. 
C)  The person who borrowed the $1,000 will be worse off as a result of the unanticipated decrease in inflation. 
D)  The real interest rate you earn on your money will be negative. 
A)  The real interest rate you earn on your money is lower than you expected. 
B)  The purchasing power of the money that will be repaid to you will be lower than you expected. 
C)  The person who borrowed the $1,000 will be worse off as a result of the unanticipated decrease in inflation. 
D)  The real interest rate you earn on your money will be negative.

Question 6

What is the natural rate of unemployment,and what types of unemployment constitute the natural rate of unemployment?

Accepted Answer

The natural rate of unemployment is the

Question 7

Explain how the CPI is constructed.

Accepted Answer

The Bureau of Labor statistics surveys 3

Question 8

Except for recessions,the duration of unemployment for the typical person lasts

Accepted Answer

A)  less than six months. 
B)  six to nine months. 
C)  over nine months. 
D)  over one year. 
E)  over five years. 
A)  less than six months. 
B)  six to nine months. 
C)  over nine months. 
D)  over one year. 
E)  over five years.

Question 9

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 10

Table 20-6
  
-Refer to Table 20-6.Consider a simple economy that produces only three products: burritos,flashlights,and golf balls.Use the information in the table to calculate the inflation rate for 2012,as measured by the consumer price index.

Accepted Answer

Total expenditures for 2001 = (10 × $1.0

Question 11

The real rate of interest is

Accepted Answer

A)  the nominal interest rate plus the inflation rate. 
B)  the nominal interest rate minus the inflation rate. 
C)  the interest rate determined by the supply and demand in the money market. 
D)  the nominal interest rate. 
A)  the nominal interest rate plus the inflation rate. 
B)  the nominal interest rate minus the inflation rate. 
C)  the interest rate determined by the supply and demand in the money market. 
D)  the nominal interest rate.

Question 12

If the nominal interest rate is 6% and the inflation rate is 2% then the real interest rate is

Accepted Answer

A)  8%. 
B)  4%. 
C)  3%. 
D)  2%. 
E)  1%. 
A)  8%. 
B)  4%. 
C)  3%. 
D)  2%. 
E)  1%.

Question 13

The unemployment rate tends to be higher in the European Union as compared to the United States.

Accepted Answer

A) True 
 B)False

Question 14

An example of a seasonally unemployed worker would be

Accepted Answer

A)  a software engineer who is laid off because of declining demand for the software he writes. 
B)  a day care provider who quits his job to go back to school. 
C)  a General Motors employee loses her job because the company is downsizing its work force. 
D)  a ski lift operator who loses his job when the snow melts in the spring. 
E)  a mother who quits her job to stay home with her children. 
A)  a software engineer who is laid off because of declining demand for the software he writes. 
B)  a day care provider who quits his job to go back to school. 
C)  a General Motors employee loses her job because the company is downsizing its work force. 
D)  a ski lift operator who loses his job when the snow melts in the spring. 
E)  a mother who quits her job to stay home with her children.

Question 15

The most widely used measure of inflation is based on which of the following price indices?

Accepted Answer

A)  the producer price index 
B)  the consumer price index 
C)  the GDP deflator 
D)  the wholesale price index 
A)  the producer price index 
B)  the consumer price index 
C)  the GDP deflator 
D)  the wholesale price index

Question 16

Eliminating structural unemployment would be good for the economy.

Accepted Answer

A) True 
 B)False

Question 17

Table 20-8
  
-Refer to Table 20-8.Looking at the table above,real average hourly earnings in 2010 were

Accepted Answer

A)  $3.67. 
B)  $5.63. 
C)  $10.24. 
D)  $11.37. 
A)  $3.67. 
B)  $5.63. 
C)  $10.24. 
D)  $11.37.

Question 18

In September 2011,Bank of America announced it would be laying off 30,000 employees,an indication of how slowly the U.S.economy was recovering from the recession of 2007-2009.At this time,economists at the White House and the Federal Reserve were forecasting that unemployment

Accepted Answer

A)  was beginning to fall back to its pre-recession levels. 
B)  would continue to rise for the next 5 years. 
C)  would not return to more normal levels for at least another two years. 
D)  had peaked and would decrease by 50 percent by the end of 2012. 
A)  was beginning to fall back to its pre-recession levels. 
B)  would continue to rise for the next 5 years. 
C)  would not return to more normal levels for at least another two years. 
D)  had peaked and would decrease by 50 percent by the end of 2012.

Question 19

A full-time student who is not working is categorized as

Accepted Answer

A)  unemployed. 
B)  employed. 
C)  not in the labor force. 
D)  a discouraged worker. 
E)  frictionally unemployed. 
A)  unemployed. 
B)  employed. 
C)  not in the labor force. 
D)  a discouraged worker. 
E)  frictionally unemployed.

Question 20

The CPI in 1990 was 131,and the CPI in 2010 was 218.If you earned a salary of $40,000 in 1990,what would be a salary with equivalent purchasing power in 2010?

Accepted Answer

A)  $45,977 
B)  $66,565 
C)  $87,200 
D)  $143,486 
A)  $45,977 
B)  $66,565 
C)  $87,200 
D)  $143,486

In September 2011,Bank of America laid off 30,000 employees.The employees who were laid off due to the effects of the recession would be considered

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

If the number of unemployed workers is 200 million,the number of employed workers is 300 million,and the working-age population is 800 million,what is the labor force participation rate?

The labor force participation rate is defined as

You agree to lend $1,000 for one year at a nominal interest rate of 10%.You anticipate that inflation will be 4% over that year.If inflation is instead 3% over that year,which of the following is true?

What is the natural rate of unemployment,and what types of unemployment constitute the natural rate of unemployment?

Explain how the CPI is constructed.

Except for recessions,the duration of unemployment for the typical person lasts

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

Table 20-6 -Refer to Table 20-6.Consider a simple economy that produces only three products: burritos,flashlights,and golf balls.Use the information in the table to calculate the inflation rate for 2012,as measured by the consumer price index.

The real rate of interest is

If the nominal interest rate is 6% and the inflation rate is 2% then the real interest rate is

The unemployment rate tends to be higher in the European Union as compared to the United States.

An example of a seasonally unemployed worker would be

The most widely used measure of inflation is based on which of the following price indices?

Eliminating structural unemployment would be good for the economy.

Table 20-8 -Refer to Table 20-8.Looking at the table above,real average hourly earnings in 2010 were

In September 2011,Bank of America announced it would be laying off 30,000 employees,an indication of how slowly the U.S.economy was recovering from the recession of 2007-2009.At this time,economists at the White House and the Federal Reserve were forecasting that unemployment

A full-time student who is not working is categorized as

The CPI in 1990 was 131,and the CPI in 2010 was 218.If you earned a salary of $40,000 in 1990,what would be a salary with equivalent purchasing power in 2010?

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

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Exam 9: Unemployment and Inflation

In September 2011,Bank of America laid off 30,000 employees.The employees who were laid off due to the effects of the recession would be considered

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

If the number of unemployed workers is 200 million,the number of employed workers is 300 million,and the working-age population is 800 million,what is the labor force participation rate?

The labor force participation rate is defined as

You agree to lend $1,000 for one year at a nominal interest rate of 10%.You anticipate that inflation will be 4% over that year.If inflation is instead 3% over that year,which of the following is true?

What is the natural rate of unemployment,and what types of unemployment constitute the natural rate of unemployment?

Explain how the CPI is constructed.

Except for recessions,the duration of unemployment for the typical person lasts

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

Table 20-6 -Refer to Table 20-6.Consider a simple economy that produces only three products: burritos,flashlights,and golf balls.Use the information in the table to calculate the inflation rate for 2012,as measured by the consumer price index.

The real rate of interest is

If the nominal interest rate is 6% and the inflation rate is 2% then the real interest rate is

The unemployment rate tends to be higher in the European Union as compared to the United States.

An example of a seasonally unemployed worker would be

The most widely used measure of inflation is based on which of the following price indices?

Eliminating structural unemployment would be good for the economy.

Table 20-8 -Refer to Table 20-8.Looking at the table above,real average hourly earnings in 2010 were

In September 2011,Bank of America announced it would be laying off 30,000 employees,an indication of how slowly the U.S.economy was recovering from the recession of 2007-2009.At this time,economists at the White House and the Federal Reserve were forecasting that unemployment

A full-time student who is not working is categorized as

The CPI in 1990 was 131,and the CPI in 2010 was 218.If you earned a salary of $40,000 in 1990,what would be a salary with equivalent purchasing power in 2010?

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