Question 1

An economy is at full employment when ________.

Accepted Answer

A)  the unemployment rate is zero 
B)  there is no frictional unemployment 
C)  the unemployment rate equals the natural unemployment rate 
D)  there is no structural unemployment 
A)  the unemployment rate is zero 
B)  there is no frictional unemployment 
C)  the unemployment rate equals the natural unemployment rate 
D)  there is no structural unemployment

Question 2

Consider the following statement: "Real GDP and potential GDP are always equal." Is this statement true or false? Explain your answer.

Accepted Answer

Real GDP often differs from potential GD

Question 3

During a recession, the ________.

Accepted Answer

A)  number of discouraged workers decreases 
B)  unemployment rate decreases 
C)  employment-to-population ratio increases 
D)  number of marginally attached workers increases 
A)  number of discouraged workers decreases 
B)  unemployment rate decreases 
C)  employment-to-population ratio increases 
D)  number of marginally attached workers increases

Question 4

The employment-to-population ratio equals

Accepted Answer

A)  (labor force)/(working-age population) × 100. 
B)  (number of people employed)/(labor force) × 100. 
C)  (number of people with full-time jobs)/(labor force) × 100. 
D)  (number of people employed)/(working-age population) × 100. 
A)  (labor force)/(working-age population) × 100. 
B)  (number of people employed)/(labor force) × 100. 
C)  (number of people with full-time jobs)/(labor force) × 100. 
D)  (number of people employed)/(working-age population) × 100.

Question 5

For each of the following values of nominal GDP and real GDP, calculate the GDP price deflator.
a)Nominal GDP = $600; real GDP = $800.
b)Nominal GDP = $900; real GDP = $900.
c)Nominal GDP = $1,200; real GDP = $1,000

Accepted Answer

a)The GDP deflator equals ($60

Question 6

Define the unemployment rate and labor-force participation rate. Discuss the differences between these two rates.

Accepted Answer

The unemployment rate is defined as [(nu

Question 7

-The above table shows answers given by people interviewed in the Current Population Survey. Which person is cyclically unemployed?

Accepted Answer

A)  A 
B)  B 
C)  C 
D)  none of the people 
A)  A 
B)  B 
C)  C 
D)  none of the people

Question 8

A labor force survey in Brownland records the following data:
Employed: 189,000
Unemployed: 15,000
Not in the labor force: 84,000
a)Calculate the unemployment rate.
b)Calculate the labor force participation rate.

Accepted Answer

a)The unemployment rate is the number of

Question 9

From 1980 to 2000 the labor force participation rate generally ________ and from 2000 to 2014 the rate generally ________.

Accepted Answer

A)  increased; decreased 
B)  decreased; decreased 
C)  increased; increased 
D)  decreased; increased 
A)  increased; decreased 
B)  decreased; decreased 
C)  increased; increased 
D)  decreased; increased

Question 10

Unemployment caused by the normal labor turnover is called ________ unemployment.

Accepted Answer

A)  part-time 
B)  frictional 
C)  involuntary 
D)  cyclical 
A)  part-time 
B)  frictional 
C)  involuntary 
D)  cyclical

Question 11

An individual who has stopped looking for a job because he is convinced that he cannot find a job is referred to as

Accepted Answer

A)  a contingent worker. 
B)  a productive worker. 
C)  a discouraged worker. 
D)  an unemployed worker. 
A)  a contingent worker. 
B)  a productive worker. 
C)  a discouraged worker. 
D)  an unemployed worker.

Question 12

When the economy switches production toward services and away from manufacturing and workers in the manufacturing industry are permanently laid off

Accepted Answer

A)  frictional unemployment decreases. 
B)  structural unemployment increases. 
C)  cyclical unemployment increases. 
D)  frictional and cyclical unemployment increase. 
A)  frictional unemployment decreases. 
B)  structural unemployment increases. 
C)  cyclical unemployment increases. 
D)  frictional and cyclical unemployment increase.

Question 13

The currently used method for calculating the CPI

Accepted Answer

A)  accounts for people increasing consumption of a good that falls in relative price. 
B)  probably overstates inflation by about 1 percentage point. 
C)  has no effect on government expenditures. 
D)  None of the above answers are correct. 
A)  accounts for people increasing consumption of a good that falls in relative price. 
B)  probably overstates inflation by about 1 percentage point. 
C)  has no effect on government expenditures. 
D)  None of the above answers are correct.

Question 14

If unemployment equals the natural unemployment rate, then there

Accepted Answer

A)  is zero unemployment. 
B)  is only frictional or structural unemployment. 
C)  are no job openings existing at the time. 
D)  is less than full employment. 
A)  is zero unemployment. 
B)  is only frictional or structural unemployment. 
C)  are no job openings existing at the time. 
D)  is less than full employment.

Question 15

Cyclical unemployment occurs when

Accepted Answer

A)  individuals enter into the labor market making the rounds of potential employers. 
B)  individuals with skills no longer valued in the labor market cannot find employment. 
C)  individuals give up the search for employment. 
D)  a business cycle recession decreases employment. 
A)  individuals enter into the labor market making the rounds of potential employers. 
B)  individuals with skills no longer valued in the labor market cannot find employment. 
C)  individuals give up the search for employment. 
D)  a business cycle recession decreases employment.

Question 16

-In the table above, the size of the labor force is

Accepted Answer

A)  80 million. 
B)  46 million. 
C)  42 million. 
D)  40 million. 
A)  80 million. 
B)  46 million. 
C)  42 million. 
D)  40 million.

Question 17

Suppose that last year the Consumer Price Index was 124; this year it is 130.7. What was the inflation rate between these years?

Accepted Answer

A)  30.7 percent 
B)  6.7 percent 
C)  5.4 percent 
D)  5.1 percent 
A)  30.7 percent 
B)  6.7 percent 
C)  5.4 percent 
D)  5.1 percent

Question 18

Explain the relationship between real GDP and potential GDP and between the unemployment rate and the natural unemployment rate as the economy moves through a business cycle.

Accepted Answer

Potential GDP is the level of GDP when t

Question 19

Which of the following decreases the official U-3 unemployment rate?

Accepted Answer

A)  Workers leave the labor force. 
B)  More women enter the labor force and seek jobs. 
C)  Young people graduate from college and start to look for their first full-time job. 
D)  None of the above because they all increase or do not change the unemployment rate. 
A)  Workers leave the labor force. 
B)  More women enter the labor force and seek jobs. 
C)  Young people graduate from college and start to look for their first full-time job. 
D)  None of the above because they all increase or do not change the unemployment rate.

Question 20

Unemployment caused by the fluctuation of the business cycle is called ________ unemployment.

Accepted Answer

A)  structural 
B)  recession-related 
C)  frictional 
D)  cyclical 
A)  structural 
B)  recession-related 
C)  frictional 
D)  cyclical

An economy is at full employment when ________.

Consider the following statement: "Real GDP and potential GDP are always equal." Is this statement true or false? Explain your answer.

During a recession, the ________.

The employment-to-population ratio equals

For each of the following values of nominal GDP and real GDP, calculate the GDP price deflator. a)Nominal GDP = $600; real GDP = $800. b)Nominal GDP = $900; real GDP = $900. c)Nominal GDP = $1,200; real GDP = $1,000

Define the unemployment rate and labor-force participation rate. Discuss the differences between these two rates.

-The above table shows answers given by people interviewed in the Current Population Survey. Which person is cyclically unemployed?

A labor force survey in Brownland records the following data: Employed: 189,000 Unemployed: 15,000 Not in the labor force: 84,000 a)Calculate the unemployment rate. b)Calculate the labor force participation rate.

From 1980 to 2000 the labor force participation rate generally and from 2000 to 2014 the rate generally .

Unemployment caused by the normal labor turnover is called ________ unemployment.

An individual who has stopped looking for a job because he is convinced that he cannot find a job is referred to as

When the economy switches production toward services and away from manufacturing and workers in the manufacturing industry are permanently laid off

The currently used method for calculating the CPI

If unemployment equals the natural unemployment rate, then there

Cyclical unemployment occurs when

-In the table above, the size of the labor force is

Suppose that last year the Consumer Price Index was 124; this year it is 130.7. What was the inflation rate between these years?

Explain the relationship between real GDP and potential GDP and between the unemployment rate and the natural unemployment rate as the economy moves through a business cycle.

Which of the following decreases the official U-3 unemployment rate?

Unemployment caused by the fluctuation of the business cycle is called ________ unemployment.

What Is Economics?

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 5: Monitoring Jobs and Inflation

An economy is at full employment when ________.

Consider the following statement: "Real GDP and potential GDP are always equal." Is this statement true or false? Explain your answer.

During a recession, the ________.

The employment-to-population ratio equals

For each of the following values of nominal GDP and real GDP, calculate the GDP price deflator. a)Nominal GDP = $600; real GDP = $800. b)Nominal GDP = $900; real GDP = $900. c)Nominal GDP = $1,200; real GDP = $1,000

Define the unemployment rate and labor-force participation rate. Discuss the differences between these two rates.

-The above table shows answers given by people interviewed in the Current Population Survey. Which person is cyclically unemployed?

A labor force survey in Brownland records the following data: Employed: 189,000 Unemployed: 15,000 Not in the labor force: 84,000 a)Calculate the unemployment rate. b)Calculate the labor force participation rate.

From 1980 to 2000 the labor force participation rate generally ________ and from 2000 to 2014 the rate generally ________.

Unemployment caused by the normal labor turnover is called ________ unemployment.

An individual who has stopped looking for a job because he is convinced that he cannot find a job is referred to as

When the economy switches production toward services and away from manufacturing and workers in the manufacturing industry are permanently laid off

The currently used method for calculating the CPI

If unemployment equals the natural unemployment rate, then there

Cyclical unemployment occurs when

-In the table above, the size of the labor force is

Suppose that last year the Consumer Price Index was 124; this year it is 130.7. What was the inflation rate between these years?

Explain the relationship between real GDP and potential GDP and between the unemployment rate and the natural unemployment rate as the economy moves through a business cycle.

Which of the following decreases the official U-3 unemployment rate?

Unemployment caused by the fluctuation of the business cycle is called ________ unemployment.

What Is Economics?

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

From 1980 to 2000 the labor force participation rate generally and from 2000 to 2014 the rate generally .