Question 1

Which of the following price indices comes closest to measuring the cost of living of the typical household?

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

What is the natural rate of unemployment,and what types of unemployment constitute the natural rate of unemployment?

Accepted Answer

The natural rate of unemployment is the

Question 4

What is the difference between the nominal interest rate and the real interest rate?

Accepted Answer

The nominal interest rate is t

Question 5

You lend $5,000 to a friend for one year at a nominal interest rate of 10%.Inflation during that year is 5%.As a result,you will receive ________ at the end of the year,but that money has a purchasing power of ________.

Accepted Answer

A) $5,050; $5,025 
B) $5,100; $5,050 
C) $5,500; $5,250 
D) $6,000; $5,500 
A) $5,050; $5,025 
B) $5,100; $5,050 
C) $5,500; $5,250 
D) $6,000; $5,500

Question 6

Paying efficiency wages are a way for a company to cut costs and become more efficient,and are therefore lower than market wages.

Accepted Answer

A) True 
 B)False

Question 7

Since 1948,the labor force participation rate for adult men has ________ and for adult women has ________.

Accepted Answer

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

Question 8

Table 9-3
  
-Refer to Table 9-3.Assume the market basket for the consumer price index has three products - Cokes,hamburgers,and CDs - with the following values in 2006 and 2013 for price and quantity: The Consumer Price Index for 2013 equals

Accepted Answer

A) 75. 
B) 93. 
C) 108. 
D) 121. 
A) 75. 
B) 93. 
C) 108. 
D) 121.

Question 9

Table 9-2
  
-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 2006 and 2013 for price and quantity: The Consumer Price Index for 2013 equals

Accepted Answer

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

Question 10

Mike has been unemployed for over a year.He hasn't looked for a job in the last three months,but he's just started looking for work again.Because Mike started looking for a new job,

Accepted Answer

A) the unemployment rate increased. 
B) the labor force participation rate decreased. 
C) the unemployment rate decreased. 
D) the working-age population increased. 
A) the unemployment rate increased. 
B) the labor force participation rate decreased. 
C) the unemployment rate decreased. 
D) the working-age population increased.

Question 11

What are menu costs?

Accepted Answer

A) the full list of a firm's costs of production 
B) the costs to a firm of changing prices 
C) the cost to a household of borrowing money when there is deflation 
D) the opportunity cost of dining in a restaurant instead of at home 
A) the full list of a firm's costs of production 
B) the costs to a firm of changing prices 
C) the cost to a household of borrowing money when there is deflation 
D) the opportunity cost of dining in a restaurant instead of at home

Question 12

Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to overstate the true extent of joblessness?

Accepted Answer

A) inflation 
B) discouraged workers 
C) counting people as employed who are working part time,although they would prefer to be working full time 
D) unemployed persons falsely report themselves to be actively looking for a job 
A) inflation 
B) discouraged workers 
C) counting people as employed who are working part time,although they would prefer to be working full time 
D) unemployed persons falsely report themselves to be actively looking for a job

Which of the following price indices comes closest to measuring the cost of living of the typical household?

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

What is the natural rate of unemployment,and what types of unemployment constitute the natural rate of unemployment?

What is the difference between the nominal interest rate and the real interest rate?

You lend $5,000 to a friend for one year at a nominal interest rate of 10%.Inflation during that year is 5%.As a result,you will receive at the end of the year,but that money has a purchasing power of .

Paying efficiency wages are a way for a company to cut costs and become more efficient,and are therefore lower than market wages.

Since 1948,the labor force participation rate for adult men has and for adult women has .

Table 9-3 -Refer to Table 9-3.Assume the market basket for the consumer price index has three products - Cokes,hamburgers,and CDs - with the following values in 2006 and 2013 for price and quantity: The Consumer Price Index for 2013 equals

Table 9-2 -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 2006 and 2013 for price and quantity: The Consumer Price Index for 2013 equals

Mike has been unemployed for over a year.He hasn't looked for a job in the last three months,but he's just started looking for work again.Because Mike started looking for a new job,

What are menu costs?

Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to overstate the true extent of joblessness?

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

Which of the following price indices comes closest to measuring the cost of living of the typical household?

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

What is the natural rate of unemployment,and what types of unemployment constitute the natural rate of unemployment?

What is the difference between the nominal interest rate and the real interest rate?

You lend $5,000 to a friend for one year at a nominal interest rate of 10%.Inflation during that year is 5%.As a result,you will receive ________ at the end of the year,but that money has a purchasing power of ________.

Paying efficiency wages are a way for a company to cut costs and become more efficient,and are therefore lower than market wages.

Since 1948,the labor force participation rate for adult men has ________ and for adult women has ________.

Table 9-3 -Refer to Table 9-3.Assume the market basket for the consumer price index has three products - Cokes,hamburgers,and CDs - with the following values in 2006 and 2013 for price and quantity: The Consumer Price Index for 2013 equals

Table 9-2 -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 2006 and 2013 for price and quantity: The Consumer Price Index for 2013 equals

Mike has been unemployed for over a year.He hasn't looked for a job in the last three months,but he's just started looking for work again.Because Mike started looking for a new job,

What are menu costs?

Which of the following cause the unemployment rate as measured by the Bureau of Labor Statistics to overstate the true extent of joblessness?

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

You lend $5,000 to a friend for one year at a nominal interest rate of 10%.Inflation during that year is 5%.As a result,you will receive at the end of the year,but that money has a purchasing power of .

Since 1948,the labor force participation rate for adult men has and for adult women has .