Question 1

The statistical measure of a weighted average of prices of goods and services that firms produce and sell is known as

Accepted Answer

A) the inflation rate. 
B) the consumer price index (CPI). 
C) the producer price index (PPI). 
D) the Gross Domestic Product (GDP)deflator. 
A) the inflation rate. 
B) the consumer price index (CPI). 
C) the producer price index (PPI). 
D) the Gross Domestic Product (GDP)deflator.

Question 2

Which of the following groups would NOT be considered as part of the civilian labor force?

Accepted Answer

A) full-time students who are not working or looking for work 
B) those already employed 
C) those who are unemployed 
D) all individuals only working part-time 
A) full-time students who are not working or looking for work 
B) those already employed 
C) those who are unemployed 
D) all individuals only working part-time

Question 3

Suppose the rate of inflation unexpectedly decreases from 7% to 4%. Which one of the following would most likely benefit from this unexpected reduction in the rate of inflation?

Accepted Answer

A) creditors. 
B) a borrower whose loan has a fixed nominal interest rate. 
C) debtors. 
D) workers who are covered by a COLA agreement. 
A) creditors. 
B) a borrower whose loan has a fixed nominal interest rate. 
C) debtors. 
D) workers who are covered by a COLA agreement.

Question 4

In conditions of full employment

Accepted Answer

A) no one in or out of the labor force is unemployed. 
B) the only unemployment results from a normal frictions and structural mismatches in the labor market. 
C) the only unemployment results from cyclical swings in economic activity. 
D) no one in the labor force is unemployed. 
A) no one in or out of the labor force is unemployed. 
B) the only unemployment results from a normal frictions and structural mismatches in the labor market. 
C) the only unemployment results from cyclical swings in economic activity. 
D) no one in the labor force is unemployed.

Question 5

-Refer the above figure. Stage "4" of the economy is called

Accepted Answer

A) a maturity. 
B) a spreading out. 
C) an expansion. 
D) a development. 
A) a maturity. 
B) a spreading out. 
C) an expansion. 
D) a development.

Question 6

-Refer to the above table. You are given information on Jasmin's consumption for 2005 and 2015. Using 2005 as the base year compute the price index for 2015. The index equals

Accepted Answer

A) 40.35. 
B) 247.826. 
C) 0.4035. 
D) 0.2478. 
A) 40.35. 
B) 247.826. 
C) 0.4035. 
D) 0.2478.

Question 7

If 2010 is the base year in the table shown above, what is the price index for the year 2015?

Accepted Answer

A) 100.0 
B) 114.7 
C) 147.1 
D) 141.7 
A) 100.0 
B) 114.7 
C) 147.1 
D) 141.7

Question 8

Currently, economists estimate that the natural rate of unemployment in the United States is about

Accepted Answer

A) 10 percent. 
B) 2 percent. 
C) 5 percent. 
D) 0 percent. 
A) 10 percent. 
B) 2 percent. 
C) 5 percent. 
D) 0 percent.

Question 9

The average duration of unemployment across the labor force is about

Accepted Answer

A) 25 weeks. 
B) 15 weeks. 
C) 8 weeks. 
D) 4 weeks. 
A) 25 weeks. 
B) 15 weeks. 
C) 8 weeks. 
D) 4 weeks.

Question 10

If an outdoor vendor loses her job when winter weather comes, this individual is

Accepted Answer

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

Question 11

Individuals who have stopped looking for work because they are convinced that they will not find a job are considered

Accepted Answer

A) structurally unemployed. 
B) discouraged workers. 
C) part of the labor force. 
D) underemployed. 
A) structurally unemployed. 
B) discouraged workers. 
C) part of the labor force. 
D) underemployed.

Question 12

The definition of the adult population is those who are 16 years and older and who are

Accepted Answer

A) employed or unemployed. 
B) in the labor force. 
C) in the labor force or not in the labor force. 
D) not in the labor force. 
A) employed or unemployed. 
B) in the labor force. 
C) in the labor force or not in the labor force. 
D) not in the labor force.

Question 13

Business fluctuations in the United States are

Accepted Answer

A) smooth and steady. 
B) predictable. 
C) controllable. 
D) irregular and unpredictable. 
A) smooth and steady. 
B) predictable. 
C) controllable. 
D) irregular and unpredictable.

Question 14

The population is 1,000 million, the labor force is 750 million, and the number of unemployed is 30 million. What is the unemployment rate?

Accepted Answer

A) 7.5 percent 
B) 4 percent 
C) 10 percent 
D) 3 percent 
A) 7.5 percent 
B) 4 percent 
C) 10 percent 
D) 3 percent

Question 15

The estimate of the current natural rate of unemployment rate in the United States is approximately

Accepted Answer

A) 0 percent. 
B) 0.5 percent. 
C) 10 percent. 
D) none of the above. 
A) 0 percent. 
B) 0.5 percent. 
C) 10 percent. 
D) none of the above.

Question 16

The total civilian labor force is comprised of

Accepted Answer

A) the unemployed and the employed. 
B) only the employed. 
C) all individuals over 16 years of age, whether or not they work or are seeking work. 
D) only full-time employed individuals between the ages of 18 and 55. 
A) the unemployed and the employed. 
B) only the employed. 
C) all individuals over 16 years of age, whether or not they work or are seeking work. 
D) only full-time employed individuals between the ages of 18 and 55.

Question 17

The indices that are based on a fixed market basket of goods and services are

Accepted Answer

A) CPI and GDP deflator. 
B) PPI and GDP deflator. 
C) CPI and PPI. 
D) CPI, PPI and GDP deflator. 
A) CPI and GDP deflator. 
B) PPI and GDP deflator. 
C) CPI and PPI. 
D) CPI, PPI and GDP deflator.

Question 18

To be officially counted as unemployed, a person must be

Accepted Answer

A) at least 16 years old. 
B) at least 18 years old. 
C) at least 21 years old. 
D) any age, so long as you are looking for work. 
A) at least 16 years old. 
B) at least 18 years old. 
C) at least 21 years old. 
D) any age, so long as you are looking for work.

Question 19

Deflation is the situation when

Accepted Answer

A) the rate at which prices increase falls. 
B) the average of all prices is declining. 
C) the real rate of interest is negative. 
D) some prices are increasing and some are declining. 
A) the rate at which prices increase falls. 
B) the average of all prices is declining. 
C) the real rate of interest is negative. 
D) some prices are increasing and some are declining.

Question 20

Which of the following individuals is NOT counted as unemployed?

Accepted Answer

A) Jamil, who recently quit his job and is looking for a new position 
B) Jackie, who was recently fired and is now applying for another job 
C) Jack, who has become discouraged about ever finding a job and has stopped looking 
D) Jennifer, who just graduated from college and is now seeking employment with the company of her dreams. 
A) Jamil, who recently quit his job and is looking for a new position 
B) Jackie, who was recently fired and is now applying for another job 
C) Jack, who has become discouraged about ever finding a job and has stopped looking 
D) Jennifer, who just graduated from college and is now seeking employment with the company of her dreams.

The statistical measure of a weighted average of prices of goods and services that firms produce and sell is known as

Which of the following groups would NOT be considered as part of the civilian labor force?

Suppose the rate of inflation unexpectedly decreases from 7% to 4%. Which one of the following would most likely benefit from this unexpected reduction in the rate of inflation?

In conditions of full employment

-Refer the above figure. Stage "4" of the economy is called

-Refer to the above table. You are given information on Jasmin's consumption for 2005 and 2015. Using 2005 as the base year compute the price index for 2015. The index equals

If 2010 is the base year in the table shown above, what is the price index for the year 2015?

Currently, economists estimate that the natural rate of unemployment in the United States is about

The average duration of unemployment across the labor force is about

If an outdoor vendor loses her job when winter weather comes, this individual is

Individuals who have stopped looking for work because they are convinced that they will not find a job are considered

The definition of the adult population is those who are 16 years and older and who are

Business fluctuations in the United States are

The population is 1,000 million, the labor force is 750 million, and the number of unemployed is 30 million. What is the unemployment rate?

The estimate of the current natural rate of unemployment rate in the United States is approximately

The total civilian labor force is comprised of

The indices that are based on a fixed market basket of goods and services are

To be officially counted as unemployed, a person must be

Deflation is the situation when

Which of the following individuals is NOT counted as unemployed?

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

The statistical measure of a weighted average of prices of goods and services that firms produce and sell is known as

Which of the following groups would NOT be considered as part of the civilian labor force?

Suppose the rate of inflation unexpectedly decreases from 7% to 4%. Which one of the following would most likely benefit from this unexpected reduction in the rate of inflation?

In conditions of full employment

-Refer the above figure. Stage "4" of the economy is called

-Refer to the above table. You are given information on Jasmin's consumption for 2005 and 2015. Using 2005 as the base year compute the price index for 2015. The index equals

If 2010 is the base year in the table shown above, what is the price index for the year 2015?

Currently, economists estimate that the natural rate of unemployment in the United States is about

The average duration of unemployment across the labor force is about

If an outdoor vendor loses her job when winter weather comes, this individual is

Individuals who have stopped looking for work because they are convinced that they will not find a job are considered

The definition of the adult population is those who are 16 years and older and who are

Business fluctuations in the United States are

The population is 1,000 million, the labor force is 750 million, and the number of unemployed is 30 million. What is the unemployment rate?

The estimate of the current natural rate of unemployment rate in the United States is approximately

The total civilian labor force is comprised of

The indices that are based on a fixed market basket of goods and services are

To be officially counted as unemployed, a person must be

Deflation is the situation when

Which of the following individuals is NOT counted as unemployed?

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