Question 1

Frictional unemployment is the result of

Accepted Answer

A) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. 
B) the process of matching workers with jobs. 
C) the ups and downs in inflation. 
D) a slowdown in the economy. 
A) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. 
B) the process of matching workers with jobs. 
C) the ups and downs in inflation. 
D) a slowdown in the economy.

Question 2

When the labor market is at full employment

Accepted Answer

A) there is only cyclical unemployment in the economy. 
B) there is only structural unemployment in the economy. 
C) the unemployment rate is 0%. 
D) there is no cyclical unemployment in the economy. 
A) there is only cyclical unemployment in the economy. 
B) there is only structural unemployment in the economy. 
C) the unemployment rate is 0%. 
D) there is no cyclical unemployment in the economy.

Question 3

The labor force is the sum of

Accepted Answer

A) employed workers and discouraged workers. 
B) employed workers and unemployed workers. 
C) employed workers and individuals not looking for work. 
D) unemployed workers and the working-age population. 
A) employed workers and discouraged workers. 
B) employed workers and unemployed workers. 
C) employed workers and individuals not looking for work. 
D) unemployed workers and the working-age population.

Question 4

Unemployment caused by a business cycle recession is called cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 5

Table 9-7
  
-Refer to Table 9-7.Suppose that the data in the table above reflect price levels in the economy.What is the inflation rate between 2017 and 2018?

Accepted Answer

A) 2.9% 
B) 3.5% 
C) 4.6% 
D) 5% 
E) 7.5% 
A) 2.9% 
B) 3.5% 
C) 4.6% 
D) 5% 
E) 7.5%

Question 6

Table 9-10
  
-Refer to Table 9-10.Suppose an economy has only three goods and the typical family purchases the amounts given in the table above.If 2013 is the base year,then what is the CPI for 2018?

Accepted Answer

A) 14.3 
B) 87.5 
C) 114.3 
D) 160 
A) 14.3 
B) 87.5 
C) 114.3 
D) 160

Question 7

Which of the following is an example of a worker experiencing frictional unemployment?

Accepted Answer

A) A worker quits his job at the U.S.Post Office to find more interesting work. 
B) A computer programmer loses her job because it is outsourced to India. 
C) An employee is laid off because the economy is suffering a recession. 
D) A United Airlines pilot loses her job because of lack of demand for air travel. 
A) A worker quits his job at the U.S.Post Office to find more interesting work. 
B) A computer programmer loses her job because it is outsourced to India. 
C) An employee is laid off because the economy is suffering a recession. 
D) A United Airlines pilot loses her job because of lack of demand for air travel.

Question 8

The nominal interest rate will be less than the real interest rate when

Accepted Answer

A) the rate of inflation is positive but decreasing. 
B) the rate of inflation is positive and increasing. 
C) the rate of inflation is negative. 
D) the real interest rate is negative. 
A) the rate of inflation is positive but decreasing. 
B) the rate of inflation is positive and increasing. 
C) the rate of inflation is negative. 
D) the real interest rate is negative.

Question 9

What impact would including members of the military in employment,labor force,and working-age population statistics have on the unemployment rate and the labor force participation rate?

Accepted Answer

A) Including members of the military would increase the unemployment rate and reduce the labor force participation rate. 
B) Including members of the military would reduce the unemployment rate and increase the labor force participation rate. 
C) Including the military would increase both the unemployment rate and the labor force participation rate. 
D) Including the military would reduce both the unemployment rate and the labor force participation rate. 
A) Including members of the military would increase the unemployment rate and reduce the labor force participation rate. 
B) Including members of the military would reduce the unemployment rate and increase the labor force participation rate. 
C) Including the military would increase both the unemployment rate and the labor force participation rate. 
D) Including the military would reduce both the unemployment rate and the labor force participation rate.

Question 10

The GDP deflator is the best measure that reflects the prices of goods and services purchased by the typical household.

Accepted Answer

A) True 
 B)False

Question 11

An unemployment insurance program has which of the following effects?

Accepted Answer

A) It decreases the amount of personal income of the unemployed. 
B) It increases the severity of a recession because it makes it more difficult for the unemployed to find jobs. 
C) It increases the amount of time spent searching for a job. 
D) It lowers the overall unemployment rate. 
A) It decreases the amount of personal income of the unemployed. 
B) It increases the severity of a recession because it makes it more difficult for the unemployed to find jobs. 
C) It increases the amount of time spent searching for a job. 
D) It lowers the overall unemployment rate.

Question 12

Jack was unemployed two weeks ago but just started a new job.As a result of this increase in the number of employed workers,which of the following occurred?

Accepted Answer

A) The labor force participation rate increased. 
B) The unemployment rate increased. 
C) The labor force participation rate decreased. 
D) The unemployment rate decreased. 
A) The labor force participation rate increased. 
B) The unemployment rate increased. 
C) The labor force participation rate decreased. 
D) The unemployment rate decreased.

Question 13

Table 9-11
  
-Refer to Table 9-11.Suppose an economy has only three goods and the typical family purchases the amounts given in the table above.If 2013 is the base year,then what is the CPI for 2018?

Accepted Answer

A) 40.08 
B) 100 
C) 180 
D) 208 
A) 40.08 
B) 100 
C) 180 
D) 208

Question 14

If the number of unemployed workers is 19 million,the number in the working-age population is 500 million,and the unemployment rate is 4%,how many workers are in the labor force?

Accepted Answer

A) 1 million 
B) 20 million 
C) 475 million 
D) 481 million 
A) 1 million 
B) 20 million 
C) 475 million 
D) 481 million

Question 15

Imagine that you borrow $1,000 for one year and at the end of the year you repay the $1,000 plus $100 of interest.If the inflation rate was 7%,what was the real interest rate you paid?

Accepted Answer

A) 17 percent 
B) 10 percent 
C) 7 percent 
D) 3 percent 
A) 17 percent 
B) 10 percent 
C) 7 percent 
D) 3 percent

Question 16

Table 9-19
  
-Refer to Table 9-19.Looking at the table above,what is the approximate rate of growth of real average hourly earnings from 2016 to 2017?

Accepted Answer

A) 15% 
B) 4.4% 
C) -1.5% 
D) -4.8% 
A) 15% 
B) 4.4% 
C) -1.5% 
D) -4.8%

Question 17

If the CPI rises from 206.7 to 212.7 between two consecutive years,by how much has the cost of living changed between these two years?

Accepted Answer

A) The cost of living has increased by 6%. 
B) The cost of living has increased by 2.9%. 
C) The cost of living has increased by 12.7%. 
D) The cost of living has decreased by 6%. 
A) The cost of living has increased by 6%. 
B) The cost of living has increased by 2.9%. 
C) The cost of living has increased by 12.7%. 
D) The cost of living has decreased by 6%.

Question 18

Table 9-2
Base Year (2013)2018
  
-Refer to Table 9-2.Assume the market basket for the consumer price index has two products-bread and milk-with the following values in 2013 and 2018 for price and quantity: The Consumer Price Index for 2018 equals

Accepted Answer

A) 118. 
B) 116. 
C) 86. 
D) 85. 
A) 118. 
B) 116. 
C) 86. 
D) 85.

Question 19

Table 9-16
  
-Refer to Table 9-16.Looking at the table above,real wages ________ from 2016 to 2017,and real wages ________ from 2017 to 2018.

Accepted Answer

A) rose; rose 
B) rose; fell 
C) fell; rose 
D) fell; fell 
A) rose; rose 
B) rose; fell 
C) fell; rose 
D) fell; fell

Question 20

Jack lost his job six months ago,and he's been actively looking for a new job ever since.The Bureau of Labor Statistics would classify Jack as

Accepted Answer

A) unemployed. 
B) out of the labor force. 
C) a discouraged worker. 
D) all of the above. 
A) unemployed. 
B) out of the labor force. 
C) a discouraged worker. 
D) all of the above.

Frictional unemployment is the result of

When the labor market is at full employment

The labor force is the sum of

Unemployment caused by a business cycle recession is called cyclical unemployment.

Table 9-7 -Refer to Table 9-7.Suppose that the data in the table above reflect price levels in the economy.What is the inflation rate between 2017 and 2018?

Table 9-10 -Refer to Table 9-10.Suppose an economy has only three goods and the typical family purchases the amounts given in the table above.If 2013 is the base year,then what is the CPI for 2018?

Which of the following is an example of a worker experiencing frictional unemployment?

The nominal interest rate will be less than the real interest rate when

What impact would including members of the military in employment,labor force,and working-age population statistics have on the unemployment rate and the labor force participation rate?

The GDP deflator is the best measure that reflects the prices of goods and services purchased by the typical household.

An unemployment insurance program has which of the following effects?

Jack was unemployed two weeks ago but just started a new job.As a result of this increase in the number of employed workers,which of the following occurred?

Table 9-11 -Refer to Table 9-11.Suppose an economy has only three goods and the typical family purchases the amounts given in the table above.If 2013 is the base year,then what is the CPI for 2018?

If the number of unemployed workers is 19 million,the number in the working-age population is 500 million,and the unemployment rate is 4%,how many workers are in the labor force?

Imagine that you borrow $1,000 for one year and at the end of the year you repay the $1,000 plus $100 of interest.If the inflation rate was 7%,what was the real interest rate you paid?

Table 9-19 -Refer to Table 9-19.Looking at the table above,what is the approximate rate of growth of real average hourly earnings from 2016 to 2017?

If the CPI rises from 206.7 to 212.7 between two consecutive years,by how much has the cost of living changed between these two years?

Table 9-2 Base Year (2013)2018 -Refer to Table 9-2.Assume the market basket for the consumer price index has two products-bread and milk-with the following values in 2013 and 2018 for price and quantity: The Consumer Price Index for 2018 equals

Table 9-16 -Refer to Table 9-16.Looking at the table above,real wages from 2016 to 2017,and real wages from 2017 to 2018.

Jack lost his job six months ago,and he's been actively looking for a new job ever since.The Bureau of Labor Statistics would classify Jack as

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 9: Unemployment and Inflation

Frictional unemployment is the result of

When the labor market is at full employment

The labor force is the sum of

Unemployment caused by a business cycle recession is called cyclical unemployment.

Table 9-7 -Refer to Table 9-7.Suppose that the data in the table above reflect price levels in the economy.What is the inflation rate between 2017 and 2018?

Table 9-10 -Refer to Table 9-10.Suppose an economy has only three goods and the typical family purchases the amounts given in the table above.If 2013 is the base year,then what is the CPI for 2018?

Which of the following is an example of a worker experiencing frictional unemployment?

The nominal interest rate will be less than the real interest rate when

What impact would including members of the military in employment,labor force,and working-age population statistics have on the unemployment rate and the labor force participation rate?

The GDP deflator is the best measure that reflects the prices of goods and services purchased by the typical household.

An unemployment insurance program has which of the following effects?

Jack was unemployed two weeks ago but just started a new job.As a result of this increase in the number of employed workers,which of the following occurred?

Table 9-11 -Refer to Table 9-11.Suppose an economy has only three goods and the typical family purchases the amounts given in the table above.If 2013 is the base year,then what is the CPI for 2018?

If the number of unemployed workers is 19 million,the number in the working-age population is 500 million,and the unemployment rate is 4%,how many workers are in the labor force?

Imagine that you borrow $1,000 for one year and at the end of the year you repay the $1,000 plus $100 of interest.If the inflation rate was 7%,what was the real interest rate you paid?

Table 9-19 -Refer to Table 9-19.Looking at the table above,what is the approximate rate of growth of real average hourly earnings from 2016 to 2017?

If the CPI rises from 206.7 to 212.7 between two consecutive years,by how much has the cost of living changed between these two years?

Table 9-2 Base Year (2013)2018 -Refer to Table 9-2.Assume the market basket for the consumer price index has two products-bread and milk-with the following values in 2013 and 2018 for price and quantity: The Consumer Price Index for 2018 equals

Table 9-16 -Refer to Table 9-16.Looking at the table above,real wages ________ from 2016 to 2017,and real wages ________ from 2017 to 2018.

Jack lost his job six months ago,and he's been actively looking for a new job ever since.The Bureau of Labor Statistics would classify Jack as

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

GDP: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,Banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Table 9-16 -Refer to Table 9-16.Looking at the table above,real wages from 2016 to 2017,and real wages from 2017 to 2018.