Question 1

Unemployment is measured as

Accepted Answer

A) all teens and adults in the civilian labor force who are not working. 
B) all adults in the civilian labor force who are willing and able to work and who are actively looking for work, but have not found a job. 
C) all adults in the civilian labor force, regardless of whether or not they have been engaged in actively seeking employment, who do not have the job they want. 
D) all adults in the civilian labor force who are not working. 
A) all teens and adults in the civilian labor force who are not working. 
B) all adults in the civilian labor force who are willing and able to work and who are actively looking for work, but have not found a job. 
C) all adults in the civilian labor force, regardless of whether or not they have been engaged in actively seeking employment, who do not have the job they want. 
D) all adults in the civilian labor force who are not working.

Question 2

The purchasing power of money increases when

Accepted Answer

A) the inflation rate increases. 
B) there is inflation. 
C) there is deflation. 
D) there are more dollars in the economy. 
A) the inflation rate increases. 
B) there is inflation. 
C) there is deflation. 
D) there are more dollars in the economy.

Question 3

If a bank advertises 3 percent interest for a checking account and the anticipated rate of inflation is 3.5 percent

Accepted Answer

A) the real rate of interest earned on the account is 0.5 percent. 
B) the real rate of interest earned on the account is -0.5 percent. 
C) the real rate of interest earned on the account is 6.5 percent. 
D) the real rate of interest earned on the account is 3.25 percent. 
A) the real rate of interest earned on the account is 0.5 percent. 
B) the real rate of interest earned on the account is -0.5 percent. 
C) the real rate of interest earned on the account is 6.5 percent. 
D) the real rate of interest earned on the account is 3.25 percent.

Question 4

When did the United States register its lowest unemployment rate?

Accepted Answer

A) in the 1920s 
B) in the economic boom of the 1990s 
C) in the Roaring Nineties (1890s) 
D) at the end of World War II 
A) in the 1920s 
B) in the economic boom of the 1990s 
C) in the Roaring Nineties (1890s) 
D) at the end of World War II

Question 5

Which one of the following accurately describes the trends in U.S. labor force participation over the past 50 years?

Accepted Answer

A) The labor force participation rate of men has climbed from about 75 percent to 90 percent. 
B) The labor force participation rate of women has climbed from below 40 percent to about 60 percent. 
C) The labor force participation rates for both men and women have declined. 
D) The overall labor force participation rate has held steady at about 85 percent. 
A) The labor force participation rate of men has climbed from about 75 percent to 90 percent. 
B) The labor force participation rate of women has climbed from below 40 percent to about 60 percent. 
C) The labor force participation rates for both men and women have declined. 
D) The overall labor force participation rate has held steady at about 85 percent.

Question 6

-In the table shown above, the total cost of the market basket in 2015 was

Accepted Answer

A) $6.00. 
B) $8.50. 
C) $60.00. 
D) $85.00. 
A) $6.00. 
B) $8.50. 
C) $60.00. 
D) $85.00.

Question 7

Collin has lost his job with a telemarketing company, which has moved its operation to India. Collin is considered

Accepted Answer

A) structurally unemployed. 
B) frictionally unemployed. 
C) seasonally unemployed. 
D) a discouraged worker. 
A) structurally unemployed. 
B) frictionally unemployed. 
C) seasonally unemployed. 
D) a discouraged worker.

Question 8

The annual rate of inflation averaged 2 percent during the past decade, but borrowers and lenders anticipate that the price level will rise at a rate of 3 percent next year. The current nominal interest rate is 7 percent. The real rate of interest is

Accepted Answer

A) 10 percent. 
B) 9 percent. 
C) 5 percent. 
D) 4 percent. 
A) 10 percent. 
B) 9 percent. 
C) 5 percent. 
D) 4 percent.

Question 9

The labor force participation rate includes

Accepted Answer

A) only those who are employed. 
B) only those employed but looking for a job. 
C) both employed workers and discouraged workers not seeking jobs. 
D) both employed workers and those unemployed but seeking employment. 
A) only those who are employed. 
B) only those employed but looking for a job. 
C) both employed workers and discouraged workers not seeking jobs. 
D) both employed workers and those unemployed but seeking employment.

Question 10

Which of the following is a stock variable? The number of

Accepted Answer

A) unemployed people. 
B) reentrants. 
C) job losers. 
D) job leavers. 
A) unemployed people. 
B) reentrants. 
C) job losers. 
D) job leavers.

Question 11

Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment. Matt would be

Accepted Answer

A) counted as still being employed. 
B) included in the economy's "hidden employment." 
C) counted as frictionally unemployed. 
D) counted as cyclically unemployed. 
A) counted as still being employed. 
B) included in the economy's "hidden employment." 
C) counted as frictionally unemployed. 
D) counted as cyclically unemployed.

Question 12

The trough of a contraction is

Accepted Answer

A) the point in time at which the level of national business activity reaches a minimum before expanding again. 
B) the point in time at which the level of national business activity reaches a maximum before contracting again. 
C) the rate at which the level of business activity is declining. 
D) an external shock that causes economic activity to decline. 
A) the point in time at which the level of national business activity reaches a minimum before expanding again. 
B) the point in time at which the level of national business activity reaches a maximum before contracting again. 
C) the rate at which the level of business activity is declining. 
D) an external shock that causes economic activity to decline.

Question 13

How are inflation and the purchasing power of money related?

Accepted Answer

Inflation is the situation in which the

Question 14

A new entrant is an individual

Accepted Answer

A) in the labor force whose employment was involuntarily terminated. 
B) who used to work full time but left the labor force and has now reentered it looking for a job. 
C) in the labor force who quits voluntarily. 
D) who has never held a full-time job lasting two weeks or longer but is now seeking employment. 
A) in the labor force whose employment was involuntarily terminated. 
B) who used to work full time but left the labor force and has now reentered it looking for a job. 
C) in the labor force who quits voluntarily. 
D) who has never held a full-time job lasting two weeks or longer but is now seeking employment.

Question 15

Lois worked for General Motors and was laid off when car sales fell during a recession with falling incomes. This is an example of

Accepted Answer

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

Question 16

The index that is not based on a fixed market basket of goods and services is the

Accepted Answer

A) CPI. 
B) PPI. 
C) Wholesale Price Index. 
D) GDP Price Deflator. 
A) CPI. 
B) PPI. 
C) Wholesale Price Index. 
D) GDP Price Deflator.

Question 17

Frictional unemployment will always exist since

Accepted Answer

A) some workers will always want to make a job transition. 
B) the capitalist system promotes unemployment. 
C) mismatches in skills will always exist. 
D) the U.S. economy will continue to shrink. 
A) some workers will always want to make a job transition. 
B) the capitalist system promotes unemployment. 
C) mismatches in skills will always exist. 
D) the U.S. economy will continue to shrink.

Question 18

When, over a sustained period of time, the growth of aggregate business activity falls below what is considered the normal growth rate, the economy necessarily experiences

Accepted Answer

A) inflation. 
B) deflation. 
C) an expansion. 
D) a recession. 
A) inflation. 
B) deflation. 
C) an expansion. 
D) a recession.

Question 19

When computing a price index, the base year is

Accepted Answer

A) the earliest year for which data are available. 
B) the year that is chosen as the point of reference for comparison of prices with other years. 
C) the most recent year for which data are available. 
D) the most recent year in which the inflation rate was close to zero. 
A) the earliest year for which data are available. 
B) the year that is chosen as the point of reference for comparison of prices with other years. 
C) the most recent year for which data are available. 
D) the most recent year in which the inflation rate was close to zero.

Question 20

How has the pattern of fluctuations in overall U.S. business activity changed since World War II?

Accepted Answer

A) It has become less volatile. 
B) Expansions have been eliminated. 
C) Contractions have been eliminated. 
D) Recessions have been eliminated. 
A) It has become less volatile. 
B) Expansions have been eliminated. 
C) Contractions have been eliminated. 
D) Recessions have been eliminated.

Unemployment is measured as

The purchasing power of money increases when

If a bank advertises 3 percent interest for a checking account and the anticipated rate of inflation is 3.5 percent

When did the United States register its lowest unemployment rate?

Which one of the following accurately describes the trends in U.S. labor force participation over the past 50 years?

-In the table shown above, the total cost of the market basket in 2015 was

Collin has lost his job with a telemarketing company, which has moved its operation to India. Collin is considered

The annual rate of inflation averaged 2 percent during the past decade, but borrowers and lenders anticipate that the price level will rise at a rate of 3 percent next year. The current nominal interest rate is 7 percent. The real rate of interest is

The labor force participation rate includes

Which of the following is a stock variable? The number of

Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment. Matt would be

The trough of a contraction is

How are inflation and the purchasing power of money related?

A new entrant is an individual

Lois worked for General Motors and was laid off when car sales fell during a recession with falling incomes. This is an example of

The index that is not based on a fixed market basket of goods and services is the

Frictional unemployment will always exist since

When, over a sustained period of time, the growth of aggregate business activity falls below what is considered the normal growth rate, the economy necessarily experiences

When computing a price index, the base year is

How has the pattern of fluctuations in overall U.S. business activity changed since World War II?

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

Unemployment is measured as

The purchasing power of money increases when

If a bank advertises 3 percent interest for a checking account and the anticipated rate of inflation is 3.5 percent

When did the United States register its lowest unemployment rate?

Which one of the following accurately describes the trends in U.S. labor force participation over the past 50 years?

-In the table shown above, the total cost of the market basket in 2015 was

Collin has lost his job with a telemarketing company, which has moved its operation to India. Collin is considered

The annual rate of inflation averaged 2 percent during the past decade, but borrowers and lenders anticipate that the price level will rise at a rate of 3 percent next year. The current nominal interest rate is 7 percent. The real rate of interest is

The labor force participation rate includes

Which of the following is a stock variable? The number of

Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment. Matt would be

The trough of a contraction is

How are inflation and the purchasing power of money related?

A new entrant is an individual

Lois worked for General Motors and was laid off when car sales fell during a recession with falling incomes. This is an example of

The index that is not based on a fixed market basket of goods and services is the

Frictional unemployment will always exist since

When, over a sustained period of time, the growth of aggregate business activity falls below what is considered the normal growth rate, the economy necessarily experiences

When computing a price index, the base year is

How has the pattern of fluctuations in overall U.S. business activity changed since World War II?

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