Question 1

Describe the major types of unemployment.

Accepted Answer

Frictional unemployment is the continuou

Question 2

The U.S. Department of Labor classifies all individuals in the United States as

Accepted Answer

A) labor force participants. 
B) either employed, unemployed, or not in the labor force. 
C) either overemployed or underemployed. 
D) potential employees. 
A) labor force participants. 
B) either employed, unemployed, or not in the labor force. 
C) either overemployed or underemployed. 
D) potential employees.

Question 3

The fact that a number of lifeguards lose their jobs at the end of each summer would be counted as

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 4

Full employment is defined by the Council of Economic Advisers as

Accepted Answer

A) 4 percent. 
B) every adult who wants to work has a job. 
C) the unemployment rate associated with zero inflation. 
D) the unemployment rate associated with the normal frictions in the labor market. 
A) 4 percent. 
B) every adult who wants to work has a job. 
C) the unemployment rate associated with zero inflation. 
D) the unemployment rate associated with the normal frictions in the labor market.

Question 5

The number of people that are fired in a month is

Accepted Answer

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

Question 6

A recession causes a decrease in the demand for housing, resulting in substantial layoffs in the construction industry. This is an example 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 7

In a small country, the adult population equals 5,000. There are 4,000 people in the labor force and 3,000 people are employed. The labor force participation rate equals

Accepted Answer

A) 25 percent. 
B) 80 percent. 
C) 30 percent. 
D) an undetermined amount given the lack of information. 
A) 25 percent. 
B) 80 percent. 
C) 30 percent. 
D) an undetermined amount given the lack of information.

Question 8

In the history of the United States, unemployment reached its highest rate

Accepted Answer

A) in the Panic of 1893. 
B) in the 1930s. 
C) in the period between World War II and the Korean War. 
D) in the Great Recession of the late 2000s. 
A) in the Panic of 1893. 
B) in the 1930s. 
C) in the period between World War II and the Korean War. 
D) in the Great Recession of the late 2000s.

Question 9

How is inflation related to interest rates?

Accepted Answer

People base their decisions on borrowing

Question 10

Since 1950, the labor force participation rate in the United States

Accepted Answer

A) of men and women both increased. 
B) of men increased and women decreased. 
C) of men and women both decreased. 
D) of men decreased and for women increased. 
A) of men and women both increased. 
B) of men increased and women decreased. 
C) of men and women both decreased. 
D) of men decreased and for women increased.

Question 11

Deflation refers to a situation in which

Accepted Answer

A) the inflation rate decreases. 
B) the average of all prices is falling. 
C) there is a recession and inflation. 
D) prices are not changing. 
A) the inflation rate decreases. 
B) the average of all prices is falling. 
C) there is a recession and inflation. 
D) prices are not changing.

Question 12

The term "business fluctuations" refers to

Accepted Answer

A) changes in overall business activity, as evidenced by changes in national income, employment, and the price level. 
B) changes in the general price level from inflation to deflation, or vice versa. 
C) changes in the full employment level of economic activity. 
D) changes in the value of the dollar. 
A) changes in overall business activity, as evidenced by changes in national income, employment, and the price level. 
B) changes in the general price level from inflation to deflation, or vice versa. 
C) changes in the full employment level of economic activity. 
D) changes in the value of the dollar.

Question 13

The value of an item expressed in today's dollars is known as

Accepted Answer

A) inflation. 
B) deflation. 
C) the nominal value. 
D) the real value. 
A) inflation. 
B) deflation. 
C) the nominal value. 
D) the real value.

Question 14

Which of the following measures gives the earliest warning of increasing inflation?

Accepted Answer

A) the Consumer Price Index 
B) the Producer Price Index 
C) the Personal Consumption Expenditure Index 
D) All of these should signal the same short-run inflation. 
A) the Consumer Price Index 
B) the Producer Price Index 
C) the Personal Consumption Expenditure Index 
D) All of these should signal the same short-run inflation.

Question 15

In a small country, there are 5,000 people in the labor force and 3,000 people are employed. The labor force participation rate equals

Accepted Answer

A) 40 percent. 
B) 60 percent. 
C) 62.5 percent. 
D) an undetermined amount given the lack of information. 
A) 40 percent. 
B) 60 percent. 
C) 62.5 percent. 
D) an undetermined amount given the lack of information.

Question 16

All of the following are signals of a recession EXCEPT

Accepted Answer

A) a cyclical reduction in employment of labor. 
B) a slight reduction in a currently high rate of growth in economic activity. 
C) increasing unemployment. 
D) a falling level of economic activity. 
A) a cyclical reduction in employment of labor. 
B) a slight reduction in a currently high rate of growth in economic activity. 
C) increasing unemployment. 
D) a falling level of economic activity.

Question 17

The major change in American labor markets this century is

Accepted Answer

A) the steady rise of the unemployment rate. 
B) the steady rise of the employment rate. 
C) the increase in the female labor-force participation rate. 
D) the increase in the labor-force participation rate. 
A) the steady rise of the unemployment rate. 
B) the steady rise of the employment rate. 
C) the increase in the female labor-force participation rate. 
D) the increase in the labor-force participation rate.

Question 18

The rate of unemployment is found by

Accepted Answer

A) dividing the number unemployed by the number of people in the labor force. 
B) dividing the number unemployed by the number employed. 
C) dividing the number employed by the number of people in the labor force. 
D) dividing the number employed by the number unemployed. 
A) dividing the number unemployed by the number of people in the labor force. 
B) dividing the number unemployed by the number employed. 
C) dividing the number employed by the number of people in the labor force. 
D) dividing the number employed by the number unemployed.

Question 19

When an individual is frictionally unemployed, the unemployment arises from

Accepted Answer

A) a short-term elimination of jobs because of a slowdown in business activity. 
B) imperfect labor market information which requires individuals to search for appropriate employment. 
C) the permanent elimination of jobs because of a change in the structure of the economy. 
D) a reduction in the overall demand for labor's skills. 
A) a short-term elimination of jobs because of a slowdown in business activity. 
B) imperfect labor market information which requires individuals to search for appropriate employment. 
C) the permanent elimination of jobs because of a change in the structure of the economy. 
D) a reduction in the overall demand for labor's skills.

Question 20

The definition of a job leaver is an individual

Accepted Answer

A) who terminates his job voluntarily in order to work for a family business. 
B) whose employment was terminated involuntarily. 
C) who competed for a promotion at his company and did not get it. 
D) who is underemployed. 
A) who terminates his job voluntarily in order to work for a family business. 
B) whose employment was terminated involuntarily. 
C) who competed for a promotion at his company and did not get it. 
D) who is underemployed.

Describe the major types of unemployment.

The U.S. Department of Labor classifies all individuals in the United States as

The fact that a number of lifeguards lose their jobs at the end of each summer would be counted as

Full employment is defined by the Council of Economic Advisers as

The number of people that are fired in a month is

A recession causes a decrease in the demand for housing, resulting in substantial layoffs in the construction industry. This is an example of

In a small country, the adult population equals 5,000. There are 4,000 people in the labor force and 3,000 people are employed. The labor force participation rate equals

In the history of the United States, unemployment reached its highest rate

How is inflation related to interest rates?

Since 1950, the labor force participation rate in the United States

Deflation refers to a situation in which

The term "business fluctuations" refers to

The value of an item expressed in today's dollars is known as

Which of the following measures gives the earliest warning of increasing inflation?

In a small country, there are 5,000 people in the labor force and 3,000 people are employed. The labor force participation rate equals

All of the following are signals of a recession EXCEPT

The major change in American labor markets this century is

The rate of unemployment is found by

When an individual is frictionally unemployed, the unemployment arises from

The definition of a job leaver is an individual

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

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

Describe the major types of unemployment.

The U.S. Department of Labor classifies all individuals in the United States as

The fact that a number of lifeguards lose their jobs at the end of each summer would be counted as

Full employment is defined by the Council of Economic Advisers as

The number of people that are fired in a month is

A recession causes a decrease in the demand for housing, resulting in substantial layoffs in the construction industry. This is an example of

In a small country, the adult population equals 5,000. There are 4,000 people in the labor force and 3,000 people are employed. The labor force participation rate equals

In the history of the United States, unemployment reached its highest rate

How is inflation related to interest rates?

Since 1950, the labor force participation rate in the United States

Deflation refers to a situation in which

The term "business fluctuations" refers to

The value of an item expressed in today's dollars is known as

Which of the following measures gives the earliest warning of increasing inflation?

In a small country, there are 5,000 people in the labor force and 3,000 people are employed. The labor force participation rate equals

All of the following are signals of a recession EXCEPT

The major change in American labor markets this century is

The rate of unemployment is found by

When an individual is frictionally unemployed, the unemployment arises from

The definition of a job leaver is an individual

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