Question 1

If the number of unemployed workers is 200 million,and the number in the labor force is 500 million,what is the unemployment rate?

Accepted Answer

A) 0.4% 
B) 4% 
C) 14% 
D) 40% 
A) 0.4% 
B) 4% 
C) 14% 
D) 40%

Question 2

Table 9-15
  
-Refer to Table 9-15.Looking at the table above,real average hourly earnings were equal to ________ in 2017.

Accepted Answer

A) $9 
B) $9.52 
C) $10 
D) $12 
A) $9 
B) $9.52 
C) $10 
D) $12

Question 3

Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower

Accepted Answer

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

Question 4

The labor force participation rates of men have gradually increased since 1948.

Accepted Answer

A) True 
 B)False

Question 5

Upon your graduation from college,you find that the economy is in recession and the unemployment rate is relatively high.Nonetheless,most Americans in this situation would continue along their career paths looking for a new job because

Accepted Answer

A) the cost of additional education is always higher during recession. 
B) high unemployment rates do not usually last for very long. 
C) looking for work is their only option. 
D) the wages of college graduates do not fall during recession. 
A) the cost of additional education is always higher during recession. 
B) high unemployment rates do not usually last for very long. 
C) looking for work is their only option. 
D) the wages of college graduates do not fall during recession.

Question 6

Which of the following would decrease the unemployment rate?

Accepted Answer

A) an increase in the minimum wage 
B) an increase in the efficiency wage 
C) an increase in labor union membership 
D) government aid to retrain unemployed workers 
A) an increase in the minimum wage 
B) an increase in the efficiency wage 
C) an increase in labor union membership 
D) government aid to retrain unemployed workers

Question 7

Discuss the likely impact of each of the following on the unemployment rate:
a.The length of time workers are eligible to receive unemployment insurance payments is cut in half.
b.The government passes a law making labor unions illegal.
c.The minimum wage is raised by 50 percent.
d.The government funds an Internet site where companies can post job openings at no charge.

Accepted Answer

a.The unemployment rate will likely decr

Question 8

The labor force participation rate equals the

Accepted Answer

A) (number of employed divided by the labor force)× 100. 
B) (labor force divided by the number of people not in the labor force)× 100. 
C) (labor force divided by working-age population)× 100. 
D) (labor force divided by the total population)× 100. 
A) (number of employed divided by the labor force)× 100. 
B) (labor force divided by the number of people not in the labor force)× 100. 
C) (labor force divided by working-age population)× 100. 
D) (labor force divided by the total population)× 100.

Question 9

The nominal interest rate plus the inflation rate equals the real interest rate.

Accepted Answer

A) True 
 B)False

Question 10

A student who just graduated from college but has not found a job would most likely be

Accepted Answer

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

Question 11

Explain why you would rather be a borrower during a period of unexpected rising inflation,and a lender during a period of unexpected declining inflation.

Accepted Answer

The nominal interest rate includes a cha

Question 12

The PPI is the

Accepted Answer

A) price parity index. 
B) prime producer index. 
C) producer price index. 
D) production performance indicator. 
A) price parity index. 
B) prime producer index. 
C) producer price index. 
D) production performance indicator.

Question 13

Which of the following would be a consequence of substitution bias in the CPI?

Accepted Answer

A) Social Security payments would not adequately compensate retired workers for inflation. 
B) Businesses would overcompensate employees for inflation when giving cost of living raises. 
C) The inflation rate based on the CPI would underestimate the true level of inflation. 
D) Judges would award child support payments that would not adequately keep up with the true cost of inflation. 
A) Social Security payments would not adequately compensate retired workers for inflation. 
B) Businesses would overcompensate employees for inflation when giving cost of living raises. 
C) The inflation rate based on the CPI would underestimate the true level of inflation. 
D) Judges would award child support payments that would not adequately keep up with the true cost of inflation.

Question 14

Suppose 180,000 people are employed,20,000 people are unemployed,and 50,000 people are not in the labor force.Calculate the labor force participation rate.

Accepted Answer

The labor force participation rate is ca

Question 15

Minimum wage laws cause unemployment because the legal minimum wage is set

Accepted Answer

A) below the market wage,causing labor demand to be greater than labor supply. 
B) below the market wage,causing labor demand to be less than labor supply. 
C) above the market wage,causing labor demand to be greater than labor supply. 
D) above the market wage,causing labor demand to be less than labor supply. 
A) below the market wage,causing labor demand to be greater than labor supply. 
B) below the market wage,causing labor demand to be less than labor supply. 
C) above the market wage,causing labor demand to be greater than labor supply. 
D) above the market wage,causing labor demand to be less than labor supply.

Question 16

A central concept in macroeconomics is the idea of the natural rate of unemployment.Why does it make sense to define full employment to occur when the unemployment rate equals the natural rate of unemployment,instead of when the unemployment rate equals zero? Elaborate and explain carefully.

Accepted Answer

With a growing,dynamic economy where bus

Question 17

If inflation is positive and is perfectly anticipated

Accepted Answer

A) those that borrow money lose. 
B) those that lend money lose. 
C) those that hold paper money lose. 
D) no one in the economy loses. 
A) those that borrow money lose. 
B) those that lend money lose. 
C) those that hold paper money lose. 
D) no one in the economy loses.

Question 18

Suppose you borrow $1,000 at an interest rate of 12 percent.If the expected real interest rate is 5 percent,then the rate of inflation over the upcoming year that would be most beneficial to you would be a rate of inflation

Accepted Answer

A) equal to 0 percent. 
B) greater than 7 percent. 
C) equal to 7 percent. 
D) less than 7 percent. 
A) equal to 0 percent. 
B) greater than 7 percent. 
C) equal to 7 percent. 
D) less than 7 percent.

Question 19

Which of the following policies would reduce structural unemployment?

Accepted Answer

A) an increase in the minimum wage 
B) a job retraining program 
C) implementing an unemployment insurance policy 
D) building an online job database that helps workers find jobs 
A) an increase in the minimum wage 
B) a job retraining program 
C) implementing an unemployment insurance policy 
D) building an online job database that helps workers find jobs

Question 20

Discouraged workers are classified by the BLS as

Accepted Answer

A) part of the labor force. 
B) not in the labor force. 
C) unemployed. 
D) employed. 
E) part-time employees. 
A) part of the labor force. 
B) not in the labor force. 
C) unemployed. 
D) employed. 
E) part-time employees.

If the number of unemployed workers is 200 million,and the number in the labor force is 500 million,what is the unemployment rate?

Table 9-15 -Refer to Table 9-15.Looking at the table above,real average hourly earnings were equal to ________ in 2017.

Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower

The labor force participation rates of men have gradually increased since 1948.

Upon your graduation from college,you find that the economy is in recession and the unemployment rate is relatively high.Nonetheless,most Americans in this situation would continue along their career paths looking for a new job because

Which of the following would decrease the unemployment rate?

The labor force participation rate equals the

The nominal interest rate plus the inflation rate equals the real interest rate.

A student who just graduated from college but has not found a job would most likely be

Explain why you would rather be a borrower during a period of unexpected rising inflation,and a lender during a period of unexpected declining inflation.

The PPI is the

Which of the following would be a consequence of substitution bias in the CPI?

Suppose 180,000 people are employed,20,000 people are unemployed,and 50,000 people are not in the labor force.Calculate the labor force participation rate.

Minimum wage laws cause unemployment because the legal minimum wage is set

A central concept in macroeconomics is the idea of the natural rate of unemployment.Why does it make sense to define full employment to occur when the unemployment rate equals the natural rate of unemployment,instead of when the unemployment rate equals zero? Elaborate and explain carefully.

If inflation is positive and is perfectly anticipated

Suppose you borrow $1,000 at an interest rate of 12 percent.If the expected real interest rate is 5 percent,then the rate of inflation over the upcoming year that would be most beneficial to you would be a rate of inflation

Which of the following policies would reduce structural unemployment?

Discouraged workers are classified by the BLS 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

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Exam 9: Unemployment and Inflation

If the number of unemployed workers is 200 million,and the number in the labor force is 500 million,what is the unemployment rate?

Table 9-15 -Refer to Table 9-15.Looking at the table above,real average hourly earnings were equal to ________ in 2017.

Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower

The labor force participation rates of men have gradually increased since 1948.

Upon your graduation from college,you find that the economy is in recession and the unemployment rate is relatively high.Nonetheless,most Americans in this situation would continue along their career paths looking for a new job because

Which of the following would decrease the unemployment rate?

The labor force participation rate equals the

The nominal interest rate plus the inflation rate equals the real interest rate.

A student who just graduated from college but has not found a job would most likely be

Explain why you would rather be a borrower during a period of unexpected rising inflation,and a lender during a period of unexpected declining inflation.

The PPI is the

Which of the following would be a consequence of substitution bias in the CPI?

Suppose 180,000 people are employed,20,000 people are unemployed,and 50,000 people are not in the labor force.Calculate the labor force participation rate.

Minimum wage laws cause unemployment because the legal minimum wage is set

A central concept in macroeconomics is the idea of the natural rate of unemployment.Why does it make sense to define full employment to occur when the unemployment rate equals the natural rate of unemployment,instead of when the unemployment rate equals zero? Elaborate and explain carefully.

If inflation is positive and is perfectly anticipated

Suppose you borrow $1,000 at an interest rate of 12 percent.If the expected real interest rate is 5 percent,then the rate of inflation over the upcoming year that would be most beneficial to you would be a rate of inflation

Which of the following policies would reduce structural unemployment?

Discouraged workers are classified by the BLS 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

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