Exam 9: Business Cycles, Unemployment, and Inflation

The unemployment rate is interpreted as the percentage of the:

Assume that there is a fixed rate of interest on contracts for borrowers and lenders. If unanticipated inflation occurs in the economy, then:

For a given amount of nominal income, the real income will:

Which phase of the business cycle would be most closely associated with an economic contraction?

Unemployment rates for men and women normally are very similar. In the Great Recession of 2007-09, the unemployment rate for men:

Refer to the diagram above. The phases of the business cycle from points A to D are, respectively:

Which of the following is a correct statement?

The rate of unemployment when the economy is at its potential output is called the:

The following items describe the responses of four individuals to a Bureau of Labor Statistics (BLS) survey of employment. 1. Mollie just graduated from college and is now looking for work. She has had three job interviews in the past month, but still has not gotten a job offer. 2) George used to work in an automotive assembly plant. He was laid off six months ago as the economy weakened. He expects to return to work in a few months when national economic conditions improve. 3) Jeanette worked as an aircraft design engineer for a company that produces military aircraft until she lost her job last year when the Federal government cut defense spending. She has been looking for similar work for a year but no company seems interested in her aircraft design skills. 4) Ricardo lost his job last year when his company downsized and laid off middle-level managers. He tried to find another job for a year, but was unsuccessful and quit looking for work. Refer to the above information. Which individual is frictionally unemployed?

A mismatch between the geographic location of workers and the location of job openings would result in which type of unemployment?

In what circumstances would lenders most benefit?

Unemployment rates for skilled workers compared to unemployment rates for unskilled workers are:

Proponents of zero inflation argue that even mild inflation (1 to 3 percent) reduces the economy's real output.

The following items describe the responses of four individuals to a Bureau of Labor Statistics (BLS) survey of employment. 1. Mollie just graduated from college and is now looking for work. She has had three job interviews in the past month, but still has not gotten a job offer. 2) George used to work in an automotive assembly plant. He was laid off six months ago as the economy weakened. He expects to return to work in a few months when national economic conditions improve. 3) Jeanette worked as an aircraft design engineer for a company that produces military aircraft until she lost her job last year when the Federal government cut defense spending. She has been looking for similar work for a year but no company seems interested in her aircraft design skills. 4) Ricardo lost his job last year when his company downsized and laid off middle-level managers. He tried to find another job for a year, but was unsuccessful and quit looking for work. Refer to the above information. Which individual is structurally unemployed?

The following items describe the responses of four individuals to a Bureau of Labor Statistics (BLS) survey of employment. 1. Mollie just graduated from college and is now looking for work. She has had three job interviews in the past month, but still has not gotten a job offer. 2) George used to work in an automotive assembly plant. He was laid off six months ago as the economy weakened. He expects to return to work in a few months when national economic conditions improve. 3) Jeanette worked as an aircraft design engineer for a company that produces military aircraft until she lost her job last year when the Federal government cut defense spending. She has been looking for similar work for a year but no company seems interested in her aircraft design skills. 4) Ricardo lost his job last year when his company downsized and laid off middle-level managers. He tried to find another job for a year, but was unsuccessful and quit looking for work. Refer to the above information. Which individual(s) would be included in the calculation of the natural unemployment rate?

If the CPI rises from 125 to 140 from one year to the next, then the rate of inflation is 15 percent.

If you knew that the per-unit production cost was $8 and that the total cost of inputs was $1,000, then the number of units of output would be:

Okun's law indicates that for:

Which of the following measures the changes in the prices of a "market basket" of some 300 goods and services purchased by typical urban consumers?

If the average level of nominal income in a nation is $44,000 and the price level index is 175, the average real income would be about: