Question 1

What is outlet bias?

Accepted Answer

A) the tendency for households to spend more money over time 
B) the tendency for households to spend their money at discount stores as prices rise 
C) the tendency for the quality of products to improve over time even though the CPI does not measure changes in quality 
D) the tendency for consumers to purchase newer,more technologically advanced products even though they have higher prices 
A) the tendency for households to spend more money over time 
B) the tendency for households to spend their money at discount stores as prices rise 
C) the tendency for the quality of products to improve over time even though the CPI does not measure changes in quality 
D) the tendency for consumers to purchase newer,more technologically advanced products even though they have higher prices

Question 2

During the Great Depression,cyclical unemployment increased as the recession continued.This increase in cyclical unemployment

Accepted Answer

A) increased the natural rate of unemployment. 
B) decreased the natural rate of unemployment. 
C) had no effect on the natural rate of unemployment. 
D) could have increased or decreased the natural rate of unemployment. 
A) increased the natural rate of unemployment. 
B) decreased the natural rate of unemployment. 
C) had no effect on the natural rate of unemployment. 
D) could have increased or decreased the natural rate of unemployment.

Question 3

What effect does the payment of government unemployment insurance have on the unemployment rate?

Accepted Answer

The payment of government unemployment i

Question 4

During the month of May,10 million workers moved from being classified as "unemployed" to being classified as "employed." As a result,

Accepted Answer

A) the unemployment rate rose. 
B) the labor force participation rate fell. 
C) the unemployment rate fell. 
D) the labor force participation rate rose. 
A) the unemployment rate rose. 
B) the labor force participation rate fell. 
C) the unemployment rate fell. 
D) the labor force participation rate rose.

Question 5

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 6

If we want to use a measure of inflation that foreshadows price changes before they affect prices at the retail level,we would base our measure of inflation on

Accepted Answer

A) the producer price index. 
B) the consumer price index. 
C) the GDP deflator. 
D) the household price index. 
A) the producer price index. 
B) the consumer price index. 
C) the GDP deflator. 
D) the household price index.

Question 7

Eliminating structural unemployment would be good for the economy.

Accepted Answer

A) True 
 B)False

Question 8

For the last few decades,the labor force participation rates of men have ________,and the labor force participation rates of women have ________.

Accepted Answer

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

Question 9

Fill in the missing values in the table of data collected in the household survey for December,1996.The working-age population,employment,unemployment,and labor force are measured in thousands.Show your work.

Accepted Answer

@#IMG-DLM& Unemployment rate = @#IMG-DLM& × 100. Unemployed

Question 10

Table 9-19
  
-Refer to Table 9-19.Looking at the table above,what is the rate of growth of the average price level from 2011 to 2012?

Accepted Answer

A) 1% 
B) 2% 
C) 3% 
D) 4% 
E) 5% 
A) 1% 
B) 2% 
C) 3% 
D) 4% 
E) 5%

Question 11

The unemployment rate tends to be higher in the European Union as compared to the United States.

Accepted Answer

A) True 
 B)False

Question 12

Table 9-21
   Source: Energy Information Administration
-Refer to Table 9-21.The table above reports the consumer price index and the average U.S.retail price for unleaded regular gasoline for four different periods since 1976.Note that the gasoline prices are in cents per gallon.
Calculate the real average retail price of unleaded regular gasoline in 1982-1984 dollars.In which period were gasoline prices the highest in real terms? Also,calculate the real average retail price of unleaded regular gasoline in 2011 dollars.

Accepted Answer

Real gasoline price in 1982-19

Question 13

The real wage equals the nominal wage ________ the CPI,all times 100.

Accepted Answer

A) divided by 
B) times 
C) minus 
D) plus 
A) divided by 
B) times 
C) minus 
D) plus

Question 14

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 2011 to 2012?

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 15

Suppose the labor force stays constant,and the working-age population stays constant,but a greater number of persons who were unemployed become employed.The labor force participation rate will

Accepted Answer

A) increase. 
B) decrease. 
C) remain constant. 
D) not change in a way that can be predicted. 
A) increase. 
B) decrease. 
C) remain constant. 
D) not change in a way that can be predicted.

Question 16

If the nominal interest rate is 6% and the inflation rate is 9%,then the real interest rate is

Accepted Answer

A) -3%. 
B) 3%. 
C) 6.67%. 
D) 15%. 
A) -3%. 
B) 3%. 
C) 6.67%. 
D) 15%.

Question 17

An increase in unemployment insurance payments would,in effect,________ the amount of time spent searching for a job,which would increase ________ unemployment.

Accepted Answer

A) increase; cyclical 
B) increase; frictional 
C) decrease; cyclical 
D) decrease; frictional 
A) increase; cyclical 
B) increase; frictional 
C) decrease; cyclical 
D) decrease; frictional

Question 18

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 19

Upon your graduation from college,you find that the economy is in recession and the unemployment rate is relatively high.Nonetheless,you continue along your career path 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 your 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 your only option. 
D) the wages of college graduates do not fall during recession.

Question 20

If the nominal rate of interest is 6.5% and the inflation rate is 3.0%,what is the real rate of interest?

Accepted Answer

A) -9.5% 
B) -3.5% 
C) 1.5% 
D) 3.5% 
E) 9.5% 
A) -9.5% 
B) -3.5% 
C) 1.5% 
D) 3.5% 
E) 9.5%

What is outlet bias?

During the Great Depression,cyclical unemployment increased as the recession continued.This increase in cyclical unemployment

What effect does the payment of government unemployment insurance have on the unemployment rate?

During the month of May,10 million workers moved from being classified as "unemployed" to being classified as "employed." As a result,

Which of the following would decrease the unemployment rate?

If we want to use a measure of inflation that foreshadows price changes before they affect prices at the retail level,we would base our measure of inflation on

Eliminating structural unemployment would be good for the economy.

For the last few decades,the labor force participation rates of men have ,and the labor force participation rates of women have .

Fill in the missing values in the table of data collected in the household survey for December,1996.The working-age population,employment,unemployment,and labor force are measured in thousands.Show your work.

Table 9-19 -Refer to Table 9-19.Looking at the table above,what is the rate of growth of the average price level from 2011 to 2012?

The unemployment rate tends to be higher in the European Union as compared to the United States.

The real wage equals the nominal wage ________ the CPI,all times 100.

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 2011 to 2012?

Suppose the labor force stays constant,and the working-age population stays constant,but a greater number of persons who were unemployed become employed.The labor force participation rate will

If the nominal interest rate is 6% and the inflation rate is 9%,then the real interest rate is

An increase in unemployment insurance payments would,in effect, the amount of time spent searching for a job,which would increase unemployment.

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?

Upon your graduation from college,you find that the economy is in recession and the unemployment rate is relatively high.Nonetheless,you continue along your career path looking for a new job because

If the nominal rate of interest is 6.5% and the inflation rate is 3.0%,what is the real rate of interest?

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

What is outlet bias?

During the Great Depression,cyclical unemployment increased as the recession continued.This increase in cyclical unemployment

What effect does the payment of government unemployment insurance have on the unemployment rate?

During the month of May,10 million workers moved from being classified as "unemployed" to being classified as "employed." As a result,

Which of the following would decrease the unemployment rate?

If we want to use a measure of inflation that foreshadows price changes before they affect prices at the retail level,we would base our measure of inflation on

Eliminating structural unemployment would be good for the economy.

For the last few decades,the labor force participation rates of men have ________,and the labor force participation rates of women have ________.

Fill in the missing values in the table of data collected in the household survey for December,1996.The working-age population,employment,unemployment,and labor force are measured in thousands.Show your work.

Table 9-19 -Refer to Table 9-19.Looking at the table above,what is the rate of growth of the average price level from 2011 to 2012?

The unemployment rate tends to be higher in the European Union as compared to the United States.

The real wage equals the nominal wage ________ the CPI,all times 100.

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 2011 to 2012?

Suppose the labor force stays constant,and the working-age population stays constant,but a greater number of persons who were unemployed become employed.The labor force participation rate will

If the nominal interest rate is 6% and the inflation rate is 9%,then the real interest rate is

An increase in unemployment insurance payments would,in effect,________ the amount of time spent searching for a job,which would increase ________ unemployment.

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?

Upon your graduation from college,you find that the economy is in recession and the unemployment rate is relatively high.Nonetheless,you continue along your career path looking for a new job because

If the nominal rate of interest is 6.5% and the inflation rate is 3.0%,what is the real rate of interest?

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

For the last few decades,the labor force participation rates of men have ,and the labor force participation rates of women have .

An increase in unemployment insurance payments would,in effect, the amount of time spent searching for a job,which would increase unemployment.