Exam 24: Short-Term Economic Fluctuations: An Introduction

Which of the following workers is least likely to lose his/her job during a recession?

The increasing availability of temporary job placement agencies and online job services has ________ the efficiency of matching workers and jobs, and has therefore ________ the natural rate of unemployment in the United States.

In Macroland potential GDP equals $20 billion and real GDP equals $19.2 billion. Macroland has a(n)________ gap equal to ________ percent of potential GDP.

The changing age structure of the U.S. population and more efficient labor markets are both possible explanations for:

The economy of Omega operates according to Okun's law. In Omega, potential GDP and real GDP both equal $7 trillion, and the natural rate of unemployment equals 6 percent. What is the actual rate of unemployment in Omega?

If real GDP is greater than potential GDP, then:

Recessions in the United States typically are:

The economy of Alpha operates according to Okun's law. In Alpha, potential GDP equals $500 billion, actual GDP equals $480 billion, and the natural rate of unemployment is 5 percent. What is the actual rate of unemployment in Alpha?

Which of the following workers is most likely to lose his/her job during a recession?

According to Okun's law, each extra percentage point of ________ unemployment is associated with a ________ widening of a negative output gap, measured in relation to potential output.

The natural rate of unemployment is equal to the unemployment rate when there is only:

For policymakers, the problem with a recessionary gap is ________ and the problem with an expansionary gap is ________.

If the natural rate of unemployment equals 5 percent and the actual rate of unemployment equals 6 percent, then cyclical unemployment equals:

According to Okun's law, when the output gap is positive, cyclical unemployment:

Typically, the unemployment rate ________ during a recession and ________ during an expansion.

In Macroland, potential output equals $100 trillion and the natural rate of unemployment is 4 percent. If the actual unemployment rate is 3 percent, then real GDP equals:

Suppose the natural rate of unemployment is 4 percent. What is the actual rate of unemployment if actual output is 2 percent below potential output?

Suppose the natural rate of unemployment is 6 percent. What is the actual rate of unemployment if actual output is 2 percent below potential output?

Which of the following is most likely to occur in the labor market during a recession?

The proposition each extra percentage point of cyclical unemployment is associated with about a 2 percent widening of a negative output gap, measured in relation to potential output, is known as: