Question 1

What is another name for the natural unemployment rate?

Accepted Answer

A) Non-deteriorating low-inflationary unemployment (NDLIU) 
B) Natural rate of no-inflation unemployment (NRNIU) 
C) Non-accelerating-inflation rate of unemployment (NAIRU) 
D) Non-inflationary rate of low unemployment (NIRLU) 
E) Natural unaffected rate of inflationary unemployment (NURIU) 
A) Non-deteriorating low-inflationary unemployment (NDLIU) 
B) Natural rate of no-inflation unemployment (NRNIU) 
C) Non-accelerating-inflation rate of unemployment (NAIRU) 
D) Non-inflationary rate of low unemployment (NIRLU) 
E) Natural unaffected rate of inflationary unemployment (NURIU)

Question 2

The four phases of a business cycle, in order, are trough, depression, peak, and expansion.

Accepted Answer

A) True 
 B)False

Question 3

When inflation is much higher than expected, which of the following is true?

Accepted Answer

A) Nominal incomes are lower than expected. 
B) Real interest rates are higher than expected. 
C) Income is redistributed from those whose expenditures are fixed toward those who receive a fixed income. 
D) Nominal interest rates are lower than expected. 
E) Real interest rates are lower than expected. 
A) Nominal incomes are lower than expected. 
B) Real interest rates are higher than expected. 
C) Income is redistributed from those whose expenditures are fixed toward those who receive a fixed income. 
D) Nominal interest rates are lower than expected. 
E) Real interest rates are lower than expected.

Question 4

The table given below reports the consumer price index in a country for four different years. Table 7.1
  Refer to Table 7.1.If a bicycle used to cost $90 in 1990, what did it cost in 2003 based on the inflation rate (rounded to the first decimal place)?

Accepted Answer

A) $115.7 
B) $118.1 
C) $101.6 
D) $130.5 
E) $79.8 
A) $115.7 
B) $118.1 
C) $101.6 
D) $130.5 
E) $79.8

Question 5

Suppose statistical surveys indicate that new orders for manufactured goods and new building permits for single-family homes are declining and that business inventories are rising.This implies economic activity is slowing down and the economy is potentially entering a recessionary period.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following individuals will not be a part of the U.S.labor force?

Accepted Answer

A) An unemployed computer worker who has given up looking for a job 
B) A college graduate seeking job after graduation 
C) A person who is not working because of a labor dispute 
D) A person who can work only part-time 
E) A person who recently moved to a new city and has not yet found a job 
A) An unemployed computer worker who has given up looking for a job 
B) A college graduate seeking job after graduation 
C) A person who is not working because of a labor dispute 
D) A person who can work only part-time 
E) A person who recently moved to a new city and has not yet found a job

Question 7

Teenagers are usually the demographic group with the highest unemployment rates.

Accepted Answer

A) True 
 B)False

Question 8

The GDP gap tends to increase when the economy shifts into recession.

Accepted Answer

A) True 
 B)False

Question 9

If the nominal interest rate is less than the rate of inflation, the real interest rate:

Accepted Answer

A) will be less than zero. 
B) will be equal to the nominal interest rate. 
C) will equal zero. 
D) will be greater than zero. 
E) will be equal to the rate of inflation. 
A) will be less than zero. 
B) will be equal to the nominal interest rate. 
C) will equal zero. 
D) will be greater than zero. 
E) will be equal to the rate of inflation.

Exam 10: Unemployment and Inflation

What is another name for the natural unemployment rate?

The four phases of a business cycle, in order, are trough, depression, peak, and expansion.

When inflation is much higher than expected, which of the following is true?

The table given below reports the consumer price index in a country for four different years. Table 7.1 Refer to Table 7.1.If a bicycle used to cost $90 in 1990, what did it cost in 2003 based on the inflation rate (rounded to the first decimal place)?

Suppose statistical surveys indicate that new orders for manufactured goods and new building permits for single-family homes are declining and that business inventories are rising.This implies economic activity is slowing down and the economy is potentially entering a recessionary period.

Which of the following individuals will not be a part of the U.S.labor force?

Teenagers are usually the demographic group with the highest unemployment rates.

The GDP gap tends to increase when the economy shifts into recession.

If the nominal interest rate is less than the rate of inflation, the real interest rate:

Economics: The World Around You

Choice, Opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

Elasticity: Demand and Supply

National Income Accounting

an Introduction to the Foreign Exchange Market and the Balance of Payments

Consumer Choice

Supply: The Costs of Doing Business

Macroeconomic Equilibrium: Aggregate Demand and Supply

Profit Maximization

Aggregate Expenditures

Perfect Competition

Income and Expenditures Equilibrium

Monopoly

Fiscal Policy

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Money and Banking

Market Failures, Government Failures, and Rent Seeking

Monetary Policy

Macroeconomic Policy: Tradeoffs, Expectations, Credibility, and Sources of Business Cycles

Resource Markets

Macroeconomic Viewpoints: New Keynesian, Monetarist, and New Classical

The Labor Market

Capital Markets

Economic Growth

Development Economics

the Land Market and Natural Resources

Aging, Social Security and Health Care

Globalization

Elasticity: Demand and Supply

Income Distribution, Poverty and Government Policy

World Trade Equilibrium

Consumer Choice

International Trade Restrictions

World Trade Equilibrium

Exchange Rates and Financial Links Between Countries

International Trade Restrictions

Supply: the Costs of Doing Business

Exchange Rates and Financial Links Between Countries

Profit Maximization

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Market Failures, Government Failures, and Rent Seeking

Resource Markets

The Labor Market

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The Land Market and Natural Resources

Aging, Social Security and Health Care

Income Distribution, Poverty and Government Policy

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

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