Question 1

The natural level of unemployment contains no_____ unemployment.

Accepted Answer

A) minority 
B) structural 
C) frictional 
D) cyclical 
A) minority 
B) structural 
C) frictional 
D) cyclical

Question 2

If the wage rate is $20 per hour and the price level is 2, then the real wage is $40 per hour.

Accepted Answer

A) True 
 B)False

Question 3

High rates of inflation often result in people spending inordinate amounts of time trying to make transactions and finding ways to keep the real value of their money from decreasing. This is an example of _____ costs.

Accepted Answer

A) shoe-leather 
B) menu 
C) efficiency wage 
D) unit-of-account 
A) shoe-leather 
B) menu 
C) efficiency wage 
D) unit-of-account

Question 4

When the economy is at full employment, _____ is zero.

Accepted Answer

A) unemployment 
B) cyclical unemployment 
C) frictional unemployment 
D) the natural rate of unemployment 
A) unemployment 
B) cyclical unemployment 
C) frictional unemployment 
D) the natural rate of unemployment

Question 5

The real wage is the wage multiplied by the price level.

Accepted Answer

A) True 
 B)False

Question 6

Use the following to answer questions :  
-(Table: Dexter's Employment Statistics) Look at the table Dexter's Employment Statistics. Use these data for the following computations.
a. What is the unemployment rate?
b. Including discouraged workers, what is the unemployment rate?

Accepted Answer

a. The unemployment rate is the number o

Question 7

Deflation is a(n):

Accepted Answer

A) decrease in the purchasing power of a unit of money. 
B) appreciation of the nation's currency. 
C) decrease in the average level of prices. 
D) increase in the average level of prices. 
A) decrease in the purchasing power of a unit of money. 
B) appreciation of the nation's currency. 
C) decrease in the average level of prices. 
D) increase in the average level of prices.

Question 8

Use the following to answer questions :
Figure: The Minimum Wage  
-(Figure: The Minimum Wage) Look at the figure The Minimum Wage. By how much does the quantity of labor supplied rise when the government imposes a binding minimum wage of P3?

Accepted Answer

A) Q4 - Q1 
B) Q3 - Q2 
C) Q2 - Q1 
D) Q4 - Q2 
A) Q4 - Q1 
B) Q3 - Q2 
C) Q2 - Q1 
D) Q4 - Q2

Question 9

The sum of frictional and structural unemployment is the:

Accepted Answer

A) actual unemployment level. 
B) cyclical amount of unemployment. 
C) natural rate of unemployment. 
D) amount of unemployment in an economy during a recession. 
A) actual unemployment level. 
B) cyclical amount of unemployment. 
C) natural rate of unemployment. 
D) amount of unemployment in an economy during a recession.

Question 10

How is it possible for the unemployment rate to overstate the true level of unemployment?

Accepted Answer

Some workers who are searching for a job

Question 11

The severe inflation in Israel during the mid-1980s was due to a war, an unstable government, and civil unrest in the country.

Accepted Answer

A) True 
 B)False

Question 12

Ron quit his job in retail management and moved to Florida with his wife, a physician who opened a new practice there. He was not successful in his job search for the next four months. Ron's unemployment is:

Accepted Answer

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

Question 13

If deflation occurs and your income is fixed, your real income:

Accepted Answer

A) will fall. 
B) will go up. 
C) will still be equal to your nominal income. 
D) is constant. 
A) will fall. 
B) will go up. 
C) will still be equal to your nominal income. 
D) is constant.

Question 14

Low unemployment rates are often:

Accepted Answer

A) associated with recessions. 
B) associated with an ability to find a job with relative ease. 
C) an indicator that finding a job is extremely difficult. 
D) the result of high cyclical unemployment rates. 
A) associated with recessions. 
B) associated with an ability to find a job with relative ease. 
C) an indicator that finding a job is extremely difficult. 
D) the result of high cyclical unemployment rates.

Question 15

Which federal agency calculates and reports the official unemployment rate?

Accepted Answer

A) Federal Reserve Bank 
B) Treasury Department 
C) Department of Health and Human Services 
D) Bureau of Labor Statistics 
A) Federal Reserve Bank 
B) Treasury Department 
C) Department of Health and Human Services 
D) Bureau of Labor Statistics

Question 16

According to official statistics, discouraged workers are:

Accepted Answer

A) included in the employment statistics. 
B) included in the labor force. 
C) not included in the labor force. 
D) treated just like the underemployed. 
A) included in the employment statistics. 
B) included in the labor force. 
C) not included in the labor force. 
D) treated just like the underemployed.

Question 17

If there are 100 million people in the total population, a labor force of 50 million, and 47 million employed workers, the unemployment rate is:

Accepted Answer

A) 3%. 
B) 6%. 
C) 8%. 
D) 10%. 
A) 3%. 
B) 6%. 
C) 8%. 
D) 10%.

Question 18

According to historical economic data for the United States from 1949 to 2014, the unemployment rate is most likely to rise:

Accepted Answer

A) whenever the economy grows at a rate below 3.25%. 
B) only when there is no economic growth. 
C) only when there is positive economic growth. 
D) whenever the economy grows at a rate between 4% and 4.8%. 
A) whenever the economy grows at a rate below 3.25%. 
B) only when there is no economic growth. 
C) only when there is positive economic growth. 
D) whenever the economy grows at a rate between 4% and 4.8%.

Question 19

If the wage rate is $9 per hour and the price level is 2, then the real wage is:

Accepted Answer

A) $18. 
B) $11. 
C) $7. 
D) $4.50. 
A) $18. 
B) $11. 
C) $7. 
D) $4.50.

Question 20

An increase in the price level that is extremely rapid (say 400% per year) is called:

Accepted Answer

A) hyperinflation. 
B) inflation. 
C) deflation. 
D) hyperdeflation. 
A) hyperinflation. 
B) inflation. 
C) deflation. 
D) hyperdeflation.

The natural level of unemployment contains no_____ unemployment.

If the wage rate is $20 per hour and the price level is 2, then the real wage is $40 per hour.

High rates of inflation often result in people spending inordinate amounts of time trying to make transactions and finding ways to keep the real value of their money from decreasing. This is an example of _____ costs.

When the economy is at full employment, _____ is zero.

The real wage is the wage multiplied by the price level.

Use the following to answer questions : -(Table: Dexter's Employment Statistics) Look at the table Dexter's Employment Statistics. Use these data for the following computations. a. What is the unemployment rate? b. Including discouraged workers, what is the unemployment rate?

Deflation is a(n):

Use the following to answer questions : Figure: The Minimum Wage -(Figure: The Minimum Wage) Look at the figure The Minimum Wage. By how much does the quantity of labor supplied rise when the government imposes a binding minimum wage of P₃?

The sum of frictional and structural unemployment is the:

How is it possible for the unemployment rate to overstate the true level of unemployment?

The severe inflation in Israel during the mid-1980s was due to a war, an unstable government, and civil unrest in the country.

Ron quit his job in retail management and moved to Florida with his wife, a physician who opened a new practice there. He was not successful in his job search for the next four months. Ron's unemployment is:

If deflation occurs and your income is fixed, your real income:

Low unemployment rates are often:

Which federal agency calculates and reports the official unemployment rate?

According to official statistics, discouraged workers are:

If there are 100 million people in the total population, a labor force of 50 million, and 47 million employed workers, the unemployment rate is:

According to historical economic data for the United States from 1949 to 2014, the unemployment rate is most likely to rise:

If the wage rate is $9 per hour and the price level is 2, then the real wage is:

An increase in the price level that is extremely rapid (say 400% per year) is called:

First Principles

Economic Models

Supply and Demand

International Trade 5

Macroeconomics: the Big Picture

Gdp and Cpi: Tracking the Macroeconomy

Long-Run Economic Growth

Savings, Investment Spending, and the Financial System

Fiscal Policy Appendix Taxes and the Multiplier

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Crises and Consequences

Events and Ideas

Open-Economy Macroeconomics

Graphs in Economics

toward a Fuller Understanding of Present Value

Filters

Exam 8: Unemployment and Inflation

The natural level of unemployment contains no_____ unemployment.

If the wage rate is $20 per hour and the price level is 2, then the real wage is $40 per hour.

High rates of inflation often result in people spending inordinate amounts of time trying to make transactions and finding ways to keep the real value of their money from decreasing. This is an example of _____ costs.

When the economy is at full employment, _____ is zero.

The real wage is the wage multiplied by the price level.

Use the following to answer questions : -(Table: Dexter's Employment Statistics) Look at the table Dexter's Employment Statistics. Use these data for the following computations. a. What is the unemployment rate? b. Including discouraged workers, what is the unemployment rate?

Deflation is a(n):

Use the following to answer questions : Figure: The Minimum Wage -(Figure: The Minimum Wage) Look at the figure The Minimum Wage. By how much does the quantity of labor supplied rise when the government imposes a binding minimum wage of P3?

The sum of frictional and structural unemployment is the:

How is it possible for the unemployment rate to overstate the true level of unemployment?

The severe inflation in Israel during the mid-1980s was due to a war, an unstable government, and civil unrest in the country.

Ron quit his job in retail management and moved to Florida with his wife, a physician who opened a new practice there. He was not successful in his job search for the next four months. Ron's unemployment is:

If deflation occurs and your income is fixed, your real income:

Low unemployment rates are often:

Which federal agency calculates and reports the official unemployment rate?

According to official statistics, discouraged workers are:

If there are 100 million people in the total population, a labor force of 50 million, and 47 million employed workers, the unemployment rate is:

According to historical economic data for the United States from 1949 to 2014, the unemployment rate is most likely to rise:

If the wage rate is $9 per hour and the price level is 2, then the real wage is:

An increase in the price level that is extremely rapid (say 400% per year) is called:

First Principles

Economic Models

Supply and Demand

International Trade 5

Macroeconomics: the Big Picture

Gdp and Cpi: Tracking the Macroeconomy

Long-Run Economic Growth

Savings, Investment Spending, and the Financial System

Fiscal Policy Appendix Taxes and the Multiplier

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Crises and Consequences

Events and Ideas

Open-Economy Macroeconomics

Graphs in Economics

toward a Fuller Understanding of Present Value

Filters

Use the following to answer questions : Figure: The Minimum Wage -(Figure: The Minimum Wage) Look at the figure The Minimum Wage. By how much does the quantity of labor supplied rise when the government imposes a binding minimum wage of P₃?