Question 1

What makes up the natural rate of unemployment?

Accepted Answer

A)  Frictional, cyclical and structural unemployment 
B)  Frictional and structural unemployment 
C)  Cyclical and structural unemployment 
D)  Frictional and cyclical unemployment 
A)  Frictional, cyclical and structural unemployment 
B)  Frictional and structural unemployment 
C)  Cyclical and structural unemployment 
D)  Frictional and cyclical unemployment

Question 2

'Demand-pull inflation' is characterised by

Accepted Answer

A)  high levels of aggregate demand, which then pulls prices down to lower levels. 
B)  the short-run aggregate supply curve shifting to the right. 
C)  rising prices and rising employment in the short-run. 
D)  the short-run aggregate supply curve shifting to the left. 
A)  high levels of aggregate demand, which then pulls prices down to lower levels. 
B)  the short-run aggregate supply curve shifting to the right. 
C)  rising prices and rising employment in the short-run. 
D)  the short-run aggregate supply curve shifting to the left.

Question 3

If inflation is higher than expected,in the case of a fixed interest rate loan,this helps borrowers (by reducing the real interest rate they pay)and hurts lenders (by reducing the real interest rate they receive).

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not true about 'hyperinflation'?

Accepted Answer

A)  During times of hyperinflation, people try to avoid holding cash. 
B)  Economies with hyperinflation are usually in a severe recession. 
C)  Hyperinflation occurs during times of an economic boom. 
D)  During times of hyperinflation, the rate of inflation can be millions of per cent per month. 
A)  During times of hyperinflation, people try to avoid holding cash. 
B)  Economies with hyperinflation are usually in a severe recession. 
C)  Hyperinflation occurs during times of an economic boom. 
D)  During times of hyperinflation, the rate of inflation can be millions of per cent per month.

Question 5

'Frictional unemployment' can be defined as unemployed that

Accepted Answer

A)  arises due to changes in technology in the economy. 
B)  occurs as the result of a recession. 
C)  occurs when people are re-entering the labour force. 
D)  occurs when people have not had a job for 12 months or more. 
A)  arises due to changes in technology in the economy. 
B)  occurs as the result of a recession. 
C)  occurs when people are re-entering the labour force. 
D)  occurs when people have not had a job for 12 months or more.

Question 6

For purposes of unemployment,how is a full-time student who is not working categorised?

Accepted Answer

A)  Not in the labour force 
B)  A discouraged worker 
C)  Employed 
D)  Unemployed 
A)  Not in the labour force 
B)  A discouraged worker 
C)  Employed 
D)  Unemployed

Question 7

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 8

If nominal wages rise slower than the price level,then real wages have ________ and the purchasing power of income has ________.

Accepted Answer

A)  fallen; fallen 
B)  fallen; risen 
C)  risen; risen 
D)  risen; fallen 
A)  fallen; fallen 
B)  fallen; risen 
C)  risen; risen 
D)  risen; fallen

Question 9

If nominal wages rise faster than the price level,then real wages have ________ and the purchasing power of income has ________.

Accepted Answer

A)  fallen; fallen 
B)  fallen; risen 
C)  risen; risen 
D)  risen; fallen 
A)  fallen; fallen 
B)  fallen; risen 
C)  risen; risen 
D)  risen; fallen

Question 10

How is the 'labour force participation rate' defined?

Accepted Answer

A)  As the working-age population in the labour force 
B)  As the working-age population that is unemployed 
C)  As the labour force that is employed 
D)  As the working-age population that is employed 
A)  As the working-age population in the labour force 
B)  As the working-age population that is unemployed 
C)  As the labour force that is employed 
D)  As the working-age population that is employed

Question 11

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

Accepted Answer

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

Question 12

A woman named Sheila who retired becomes bored and begins to look for a job.During the time she is searching for work,she would be classified as -.

Accepted Answer

A)  structurally unemployed 
B)  cyclically unemployed 
C)  frictionally unemployed 
D)  not unemployed because she was not working before she started looking for a job 
A)  structurally unemployed 
B)  cyclically unemployed 
C)  frictionally unemployed 
D)  not unemployed because she was not working before she started looking for a job

Question 13

If the nominal interest rate is 8% and the inflation rate is 3%,then the real interest rate is -.

Accepted Answer

A)  4% 
B)  8% 
C)  3% 
D)  5% 
A)  4% 
B)  8% 
C)  3% 
D)  5%

Question 14

Most economists agree that trade unions reduce the overall unemployment rate in the economy.

Accepted Answer

A) True 
 B)False

Question 15

Explain the difference between the 'price level','inflation',and the 'inflation rate'.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

The price level is a measure of the aver

Question 16

Looking at the following table,real average hourly earnings equal ________ in 2017. $$\begin{array} { | c | c | c | } 
\hline \text { Year } & \begin{array} { c } 
\text { Nominal Average } \
\text { Hourly Earnings, } \$
\end{array} & \text { CPI } \
\hline 2016 & 10 & 100 \
\hline 2017 & 11 & 105 \
\hline 2018 & 12 & 110 \
\hline
\end{array}$$

Accepted Answer

A)  $9.52 
B)  $9.00 
C)  $10.47 
D)  $12.00 
A)  $9.52 
B)  $9.00 
C)  $10.47 
D)  $12.00

Question 17

Which of following age groups is most likely to have the longest duration of continuous unemployment?

Accepted Answer

A)  15-19 years 
B)  20-24 years 
C)  45-54 years 
D)  Over 55 years 
A)  15-19 years 
B)  20-24 years 
C)  45-54 years 
D)  Over 55 years

Question 18

Suppose that the data in the following table reflects the prices in an economy.What is the inflation rate in between 2017 and 2018? $$\begin{array} { | c | c | } 
\hline \text { Year } & \text { CPI } \
& ( \mathbf { 2 0 1 7 } = \mathbf { 1 0 0 } ) \
\hline 2017 & 100 \
\hline 2018 & 120 \
\hline
\end{array}$$

Accepted Answer

A)  2% 
B)  5% 
C)  20% 
D)  10% 
A)  2% 
B)  5% 
C)  20% 
D)  10%

Question 19

The 'labour force' is the

Accepted Answer

A)  number of people employed minus the number of people unemployed. 
B)  number of people employed plus the number of people unemployed. 
C)  ratio of the number of people employed to the number of people unemployed. 
D)  ratio of the number of people employed to the working-age population. 
A)  number of people employed minus the number of people unemployed. 
B)  number of people employed plus the number of people unemployed. 
C)  ratio of the number of people employed to the number of people unemployed. 
D)  ratio of the number of people employed to the working-age population.

Question 20

Describe the three types of unemployment.
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Accepted Answer

Cyclical unemployment is caused by a bus

What makes up the natural rate of unemployment?

'Demand-pull inflation' is characterised by

If inflation is higher than expected,in the case of a fixed interest rate loan,this helps borrowers (by reducing the real interest rate they pay)and hurts lenders (by reducing the real interest rate they receive).

Which of the following is not true about 'hyperinflation'?

'Frictional unemployment' can be defined as unemployed that

For purposes of unemployment,how is a full-time student who is not working categorised?

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. _ _

If nominal wages rise slower than the price level,then real wages have and the purchasing power of income has .

If nominal wages rise faster than the price level,then real wages have and the purchasing power of income has .

How is the 'labour force participation rate' defined?

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

A woman named Sheila who retired becomes bored and begins to look for a job.During the time she is searching for work,she would be classified as -.

If the nominal interest rate is 8% and the inflation rate is 3%,then the real interest rate is -.

Most economists agree that trade unions reduce the overall unemployment rate in the economy.

Explain the difference between the 'price level','inflation',and the 'inflation rate'. _ _

Looking at the following table,real average hourly earnings equal ________ in 2017. Year Nominal Average Hourly Earnings, \ CPI 2016 10 100 2017 11 105 2018 12 110

Which of following age groups is most likely to have the longest duration of continuous unemployment?

Suppose that the data in the following table reflects the prices in an economy.What is the inflation rate in between 2017 and 2018? Year CPI (=) 2017 100 2018 120

The 'labour force' is the

Describe the three types of unemployment. _ _

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency,government Price Setting and Taxes

Technology,production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition and Oligopoly

The Markets for Labour and Other Factors of Production

Government Intervention in the Market

Social Policy and Inequality

Gdp: Measuring Total Production, income and Economic Growth

Aggregate Demand and Aggregate Supply Analysis

Money,banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Comparative Advantage and the Gains From International Trade

Macroeconomics in an Open Economy

Filters

Exam 14: Unemployment and Inflation

What makes up the natural rate of unemployment?

'Demand-pull inflation' is characterised by

If inflation is higher than expected,in the case of a fixed interest rate loan,this helps borrowers (by reducing the real interest rate they pay)and hurts lenders (by reducing the real interest rate they receive).

Which of the following is not true about 'hyperinflation'?

'Frictional unemployment' can be defined as unemployed that

For purposes of unemployment,how is a full-time student who is not working categorised?

If nominal wages rise slower than the price level,then real wages have ________ and the purchasing power of income has ________.

If nominal wages rise faster than the price level,then real wages have ________ and the purchasing power of income has ________.

How is the 'labour force participation rate' defined?

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

A woman named Sheila who retired becomes bored and begins to look for a job.During the time she is searching for work,she would be classified as -.

If the nominal interest rate is 8% and the inflation rate is 3%,then the real interest rate is -.

Most economists agree that trade unions reduce the overall unemployment rate in the economy.

Explain the difference between the 'price level','inflation',and the 'inflation rate'. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Looking at the following table,real average hourly earnings equal ________ in 2017. Year Nominal Average Hourly Earnings, \ CPI 2016 10 100 2017 11 105 2018 12 110

Which of following age groups is most likely to have the longest duration of continuous unemployment?

Suppose that the data in the following table reflects the prices in an economy.What is the inflation rate in between 2017 and 2018? Year CPI (=) 2017 100 2018 120

The 'labour force' is the

Describe the three types of unemployment. _____________________________________________________________________________________________ _____________________________________________________________________________________________

Economics: Foundations and Models

Choices and Trade-Offs in the Market

Where Prices Come From: the Interaction of Demand and Supply

Elasticity: The Responsiveness of Demand and Supply

Economic Efficiency,government Price Setting and Taxes

Technology,production and Costs

Firms in Perfectly Competitive Markets

Monopoly Markets

Monopolistic Competition and Oligopoly

The Markets for Labour and Other Factors of Production

Government Intervention in the Market

Social Policy and Inequality

Gdp: Measuring Total Production, income and Economic Growth

Aggregate Demand and Aggregate Supply Analysis

Money,banks and the Reserve Bank of Australia

Monetary Policy

Fiscal Policy

Comparative Advantage and the Gains From International Trade

Macroeconomics in an Open Economy

Filters

If nominal wages rise slower than the price level,then real wages have and the purchasing power of income has .

If nominal wages rise faster than the price level,then real wages have and the purchasing power of income has .

Explain the difference between the 'price level','inflation',and the 'inflation rate'. _ _

Describe the three types of unemployment. _ _