Exam 9: Business Cycles, Unemployment, and Inflation

The downward-stickiness of wages serves like a _____ in the labor market.

If the inflation premium is 3% and the real interest on a loan is 4%, then the nominal interest rate is:

What are the primary effects of cost-push inflation?

Anyone who is not employed is classified as unemployed in the Bureau of Labor Statistics data on the labor force.

The higher the rate of unemployment:

The unemployed are those people who:

If the actual rate of unemployment is above the natural rate of unemployment, then potential GDP is:

Unemployment that occurs when there is deficient demand for the goods and services of an economy is called:

Refer to the diagram above. The straight line E drawn through the wavy lines would provide an estimate of the:

The recurrent ups and downs in the level of economic activity extending over several years are referred to as:

Which of the following groups has traditionally benefited from unanticipated inflation?

If the Consumer Price Index for a certain year is 120, this means that the average price of consumer items in that year was:

Inflation is a rise in:

Which of the following countries experienced deflation for several years in the period 2002-2012?

If the economy's actual GDP is greater than its potential GDP, then there is high unemployment in that economy.

What is the main problem with mild inflation according to some economists?

Cost-push inflation tends to be characterized by all of the following, except:

In which industry or sector of the economy is output least likely to be affected by the business cycle?

Lenders will be willing to reduce the nominal interest rates on loans if the expected inflation increases.

"Depression means idleness. And idleness means loss of skills, loss of self-respect, plummeting morale, family disintegration, and sociopolitical unrest." This quote describes some of the: