Exam 9: Business Cycles, Unemployment, and Inflation

Which of the following statements is correct?

If the natural rate of unemployment is 4.5 percent and the actual unemployment rate is 6.5 percent, then Okun's law indicates that the GDP gap is:

Search and wait unemployment is another way to describe:

After the Great Recession of 2007-09 ended, real GDP increased:

A trough in the business cycle occurs when:

Deflation is when the inflation rate turns negative.

The full-employment unemployment rate for the United States economy is now generally considered to be:

The unemployment rate in an economy is 6%. The total population of the economy is 290 million, and the size of the civilian labor force is 150 million. The number of unemployed workers in this economy is:

General sources of shocks that can cause business cycles include the following, except:

The duration of a recession measures the depth of decline in real output during the recession.

The one quirk that labor markets have, which helps explain why unemployment goes up so much in a recession is that:

The inflation rate measures the percentage growth rate of:

A statement that is often used to describe demand-pull inflation is:

If the Consumer Price Index was 90 in one year and 100 in the following year, then the rate of inflation is about:

Inflation caused by a rise in the prices of inputs is referred to as:

Inflation rates in the U.S. from 2000 to 2012 were within the range of:

Possible reasons why the level of employment remained lower than before the Great Recession began, even three years after the recession ended, includes the following, except:

Potential GDP is the output that would be produced if the economy was experiencing:

If the negative GDP gap were equal to 4% of the potential GDP, Okun's law suggests that the actual unemployment rate would exceed the natural rate of unemployment by:

Which of the following statistics can turn negative?