Question 1

Unemployment is a

Accepted Answer

A) flow concept. 
B) stock concept. 
C) both a flow and a stock concept. 
D) neither a stock nor a flow concept. 
A) flow concept. 
B) stock concept. 
C) both a flow and a stock concept. 
D) neither a stock nor a flow concept.

Question 2

The term "unemployment" is best described as the total number of

Accepted Answer

A) people not working. 
B) people who have been laid off and have stopped looking for work. 
C) adults who work fewer hours than they wish to work. 
D) adults who are looking for work but have not found a job. 
A) people not working. 
B) people who have been laid off and have stopped looking for work. 
C) adults who work fewer hours than they wish to work. 
D) adults who are looking for work but have not found a job.

Question 3

The GDP deflator is a

Accepted Answer

A) statistical measure of a weighted average of prices of a specific set of goods and services purchased by wage earners in urban areas. 
B) statistical measure of a weighted average of prices of commodities that firms produce and sell. 
C) price index measuring the changes in prices of all new goods and services produced in the economy. 
D) price index that tracks the price level of commodities that firms purchase from other firms. 
A) statistical measure of a weighted average of prices of a specific set of goods and services purchased by wage earners in urban areas. 
B) statistical measure of a weighted average of prices of commodities that firms produce and sell. 
C) price index measuring the changes in prices of all new goods and services produced in the economy. 
D) price index that tracks the price level of commodities that firms purchase from other firms.

Question 4

A business fluctuation when the pace of business activity is speeding up is known as

Accepted Answer

A) a contraction. 
B) a trough. 
C) an expansion. 
D) a recession. 
A) a contraction. 
B) a trough. 
C) an expansion. 
D) a recession.

Question 5

According to the text, during which time period did the United States have the highest unemployment rates?

Accepted Answer

A) 1930s 
B) 1950s 
C) 1980s 
D) 2000s 
A) 1930s 
B) 1950s 
C) 1980s 
D) 2000s

Question 6

Last year a pair of jeans had a price of $20 and this year the price is $25. Which of the following expresses this price change accurately?

Accepted Answer

A) If this year is the base year, the index number for last year would be 120. 
B) If last year is the base year, the index number for this year would be 120. 
C) If this year is the base year, the index number for last year would be 80. 
D) If last year is the base year, the index number for this year would be 80. 
A) If this year is the base year, the index number for last year would be 120. 
B) If last year is the base year, the index number for this year would be 120. 
C) If this year is the base year, the index number for last year would be 80. 
D) If last year is the base year, the index number for this year would be 80.

Question 7

-Refer the above figure. Stage "1" of the economy is called

Accepted Answer

A) the top. 
B) the peak. 
C) the trend. 
D) the climax. 
A) the top. 
B) the peak. 
C) the trend. 
D) the climax.

Question 8

The formula for computing a basic price index is

Accepted Answer

A) (cost of market basket today/cost of market basket in base year)× 100. 
B) (cost of market basket in base year/100)× cost of market basket today. 
C) (cost of market basket in base year/cost of market basket today)× 100. 
D) (100/cost of market basket in base year)+ cost of market basket today. 
A) (cost of market basket today/cost of market basket in base year)× 100. 
B) (cost of market basket in base year/100)× cost of market basket today. 
C) (cost of market basket in base year/cost of market basket today)× 100. 
D) (100/cost of market basket in base year)+ cost of market basket today.

Question 9

If a person is laid off from a job, he is considered by the Bureau of Labor Statistics to be a

Accepted Answer

A) job loser. 
B) reentrant. 
C) job leaver. 
D) new entrant. 
A) job loser. 
B) reentrant. 
C) job leaver. 
D) new entrant.

Question 10

Structural unemployment is

Accepted Answer

A) due to the fact that workers must search for appropriate job offers. 
B) a result of a poor match of worker's abilities and skills with current requirements of employers. 
C) a result of business recessions that occur when aggregate demand is insufficient to create full employment. 
D) a result of the seasonal pattern of work in specific industries. 
A) due to the fact that workers must search for appropriate job offers. 
B) a result of a poor match of worker's abilities and skills with current requirements of employers. 
C) a result of business recessions that occur when aggregate demand is insufficient to create full employment. 
D) a result of the seasonal pattern of work in specific industries.

Question 11

Full employment is

Accepted Answer

A) zero unemployment. 
B) when the unemployment level is reduced to the goal set by Congress. 
C) the unemployment level when the normal friction in the economy is taken in account. 
D) when all adults looking for work can find full time occupation. 
A) zero unemployment. 
B) when the unemployment level is reduced to the goal set by Congress. 
C) the unemployment level when the normal friction in the economy is taken in account. 
D) when all adults looking for work can find full time occupation.

Question 12

Which of the following statements is TRUE if your money income stays the same but the price of one good that you are buying goes up?

Accepted Answer

A) Your effective purchasing power falls. 
B) Your nominal income has been decreased. 
C) You will have to reduce the quantities you purchase of all goods. 
D) Your real income has increased. 
A) Your effective purchasing power falls. 
B) Your nominal income has been decreased. 
C) You will have to reduce the quantities you purchase of all goods. 
D) Your real income has increased.

Question 13

Which of the following would NOT be considered unemployed?

Accepted Answer

A) a new entrant to the labor force 
B) a job leaver who is looking for a better job 
C) an individual fired by her employer 
D) a newly retired worker 
A) a new entrant to the labor force 
B) a job leaver who is looking for a better job 
C) an individual fired by her employer 
D) a newly retired worker

Question 14

-Using the above table, the unemployment rate X is

Accepted Answer

A) 2.6 percent. 
B) 5.0 percent. 
C) 3.5 percent. 
D) 2.1 percent. 
A) 2.6 percent. 
B) 5.0 percent. 
C) 3.5 percent. 
D) 2.1 percent.

Question 15

The nominal rate of interest is

Accepted Answer

A) the interest rate observed in today's market. 
B) the interest rate observed in the market minus the inflation premium. 
C) not influenced by inflation. 
D) a value that depends upon the stock market. 
A) the interest rate observed in today's market. 
B) the interest rate observed in the market minus the inflation premium. 
C) not influenced by inflation. 
D) a value that depends upon the stock market.

Question 16

Which of the following best describes an economy with full employment?

Accepted Answer

A) "Everyone who is looking for a job will have one." 
B) "No person is unemployed for whatever reason." 
C) "Full employment occurs only when the economy has a zero percent unemployment rate." 
D) "The level of unemployment that corresponds to the normal friction in the labor market." 
A) "Everyone who is looking for a job will have one." 
B) "No person is unemployed for whatever reason." 
C) "Full employment occurs only when the economy has a zero percent unemployment rate." 
D) "The level of unemployment that corresponds to the normal friction in the labor market."

Question 17

Which of the following is TRUE of unemployment?

Accepted Answer

A) It is defined as the number of people actively looking for work who do not have jobs. 
B) The result is that the economy operates inside its production possibilities curve. 
C) There are psychological consequences associated with unemployment. 
D) All of the above. 
A) It is defined as the number of people actively looking for work who do not have jobs. 
B) The result is that the economy operates inside its production possibilities curve. 
C) There are psychological consequences associated with unemployment. 
D) All of the above.

Question 18

Inflation can be defined as

Accepted Answer

A) an increase in the purchasing power of money. 
B) a decrease in the purchasing power of money. 
C) no change in the purchasing power of money. 
D) an increase in real income. 
A) an increase in the purchasing power of money. 
B) a decrease in the purchasing power of money. 
C) no change in the purchasing power of money. 
D) an increase in real income.

Question 19

The nominal rate of interest is

Accepted Answer

A) CPI minus an inflationary premium. 
B) PPI minus an inflationary premium. 
C) the market rate of interest expressed in today's dollars. 
D) the real rate of interest minus the anticipated rate of inflation. 
A) CPI minus an inflationary premium. 
B) PPI minus an inflationary premium. 
C) the market rate of interest expressed in today's dollars. 
D) the real rate of interest minus the anticipated rate of inflation.

Question 20

During an unanticipated inflation

Accepted Answer

A) creditors are helped and debtors are hurt. 
B) creditors are hurt and debtors are helped. 
C) both creditors and debtors are hurt. 
D) both creditors and debtors are helped. 
A) creditors are helped and debtors are hurt. 
B) creditors are hurt and debtors are helped. 
C) both creditors and debtors are hurt. 
D) both creditors and debtors are helped.

Unemployment is a

The term "unemployment" is best described as the total number of

The GDP deflator is a

A business fluctuation when the pace of business activity is speeding up is known as

According to the text, during which time period did the United States have the highest unemployment rates?

Last year a pair of jeans had a price of $20 and this year the price is $25. Which of the following expresses this price change accurately?

-Refer the above figure. Stage "1" of the economy is called

The formula for computing a basic price index is

If a person is laid off from a job, he is considered by the Bureau of Labor Statistics to be a

Structural unemployment is

Full employment is

Which of the following statements is TRUE if your money income stays the same but the price of one good that you are buying goes up?

Which of the following would NOT be considered unemployed?

-Using the above table, the unemployment rate X is

The nominal rate of interest is

Which of the following best describes an economy with full employment?

Which of the following is TRUE of unemployment?

Inflation can be defined as

The nominal rate of interest is

During an unanticipated inflation

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters

Exam 7: The Macroeconomy: Unemployment, Inflation, and Deflation

Unemployment is a

The term "unemployment" is best described as the total number of

The GDP deflator is a

A business fluctuation when the pace of business activity is speeding up is known as

According to the text, during which time period did the United States have the highest unemployment rates?

Last year a pair of jeans had a price of $20 and this year the price is $25. Which of the following expresses this price change accurately?

-Refer the above figure. Stage "1" of the economy is called

The formula for computing a basic price index is

If a person is laid off from a job, he is considered by the Bureau of Labor Statistics to be a

Structural unemployment is

Full employment is

Which of the following statements is TRUE if your money income stays the same but the price of one good that you are buying goes up?

Which of the following would NOT be considered unemployed?

-Using the above table, the unemployment rate X is

The nominal rate of interest is

Which of the following best describes an economy with full employment?

Which of the following is TRUE of unemployment?

Inflation can be defined as

The nominal rate of interest is

During an unanticipated inflation

The Nature of Economics

Scarcity and the World of Trade-Offs

Demand and Supply

Extensions of Demand and Supply Analysis

Public Spending and Public Choice

Funding the Public Sector

Global Economic Growth and Development

Real GDP and the Price Level in the Long Run

Classical and Keynesian Macro Analyses

Consumption, Real GDP, and the Multiplier

Fiscal Policy

Deficit Spending and the Public Debt

Money Banking and Central Banking

Domestic and International Dimensions of Monetary Policy

Stabilization in an Integrated World Economy

Policies and Prospects for Global Economic Growth

Comparative Advantage and the Open Economy

Exchange Rates and the Balance of Payments

Filters