Question 1

Hurricane Katrina caused the price of oil to increase. This is an example of

Accepted Answer

A)  inflation. 
B)  deflation. 
C)  a sustained inflation. 
D)  the operations of supply and demand. 
A)  inflation. 
B)  deflation. 
C)  a sustained inflation. 
D)  the operations of supply and demand.

Question 2

U.S. productivity grew the fastest in which of the following decades?

Accepted Answer

A)  1960s 
B)  1970s 
C)  1980s 
D)  1990s 
A)  1960s 
B)  1970s 
C)  1980s 
D)  1990s

Question 3

Per capita output is a measure of economic welfare of a country.

Accepted Answer

A) True 
 B)False

Question 4

The economy is in a recession and the housing market is in a slump. As a result of this, a real estate firm lays off half of its real estate agents. This is an example of

Accepted Answer

A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  natural unemployment. 
A)  frictional unemployment. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  natural unemployment.

Question 5

Bob is not considered unemployed if he

Accepted Answer

A)  is temporarily laid off. 
B)  is not looking for a job. 
C)  is not working but has looked for a job for the past two months. 
D)  all of the above 
A)  is temporarily laid off. 
B)  is not looking for a job. 
C)  is not working but has looked for a job for the past two months. 
D)  all of the above

Question 6

If 2015 is the base year and the inflation rate between 2015 and 2016 is 7.1, the price index in 2016 is

Accepted Answer

A)  171. 
B)  107.1. 
C)  92.9. 
D)  1.09. 
A)  171. 
B)  107.1. 
C)  92.9. 
D)  1.09.

Question 7

If the CPI in 2015 was 112 and the CPI in 2016 was 116, then the rate of inflation between 2015 and 2016 was

Accepted Answer

A)  4.00%. 
B)  3.64%. 
C)  3.57%. 
D)  3.45%. 
A)  4.00%. 
B)  3.64%. 
C)  3.57%. 
D)  3.45%.

Question 8

The ________ in unemployment that occurs during recessions and depressions is called ________ unemployment.

Accepted Answer

A)  increase; cyclical 
B)  increase; frictional 
C)  increase; natural 
D)  decrease; structural 
A)  increase; cyclical 
B)  increase; frictional 
C)  increase; natural 
D)  decrease; structural

Question 9

A decrease in search costs will decrease cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 10

A price index that tends to be a leading indicator of future inflation rates is the

Accepted Answer

A)  consumer price index. 
B)  producer price index. 
C)  GDP price index. 
D)  retail price index. 
A)  consumer price index. 
B)  producer price index. 
C)  GDP price index. 
D)  retail price index.

Question 11

The United States has not experienced high inflation since the 1970s.

Accepted Answer

A) True 
 B)False

Question 12

Output in an economy can be increased by

Accepted Answer

A)  adding more workers. 
B)  limiting the work week. 
C)  using fewer machines. 
D)  decreasing inflation. 
A)  adding more workers. 
B)  limiting the work week. 
C)  using fewer machines. 
D)  decreasing inflation.

Question 13

During the early 1990s, companies started downsizing. One of the results of this downsizing was the permanent reduction in the number of middle management positions. This change in the way businesses operate would have

Accepted Answer

A)  increased the natural rate of unemployment. 
B)  decreased the natural rate of unemployment. 
C)  not affected the natural rate of unemployment. 
D)  could have either increased or decreased the natural rate of unemployment. 
A)  increased the natural rate of unemployment. 
B)  decreased the natural rate of unemployment. 
C)  not affected the natural rate of unemployment. 
D)  could have either increased or decreased the natural rate of unemployment.

Question 14

Productivity is output per worker hour.

Accepted Answer

A) True 
 B)False

Question 15

If the number of unemployed equals 10,000, the number of employed equals 70,000, and the number not in the labor force is 20,000, the labor-force participation rate is

Accepted Answer

A)  60%. 
B)  70%. 
C)  80%. 
D)  90%. 
A)  60%. 
B)  70%. 
C)  80%. 
D)  90%.

Question 16

Refer to the information provided in Table 7.3 below to answer the questions that follow.
Table 7.3  
-Refer to Table 7.3. The employment rate is

Accepted Answer

A)  52.8%. 
B)  62.5%. 
C)  95.0%. 
D)  97.2%. 
A)  52.8%. 
B)  62.5%. 
C)  95.0%. 
D)  97.2%.

Question 17

If the number of unemployed equals 30,000, the number of employed equals 60,000, and the number not in the labor force is 10,000, the labor-force participation rate

Accepted Answer

A)  is 90%. 
B)  is 88.9%. 
C)  is 67%. 
D)  cannot be determined from this information. 
A)  is 90%. 
B)  is 88.9%. 
C)  is 67%. 
D)  cannot be determined from this information.

Question 18

A prolonged and deep recession is a

Accepted Answer

A)  hyperinflation. 
B)  slowdown. 
C)  contraction. 
D)  depression. 
A)  hyperinflation. 
B)  slowdown. 
C)  contraction. 
D)  depression.

Question 19

Cheryl graduated from college a month ago and is now without work. She accepted a job that will start next month. Today, Cheryl is

Accepted Answer

A)  not in the labor force. 
B)  in the labor force. 
C)  employed. 
D)  a discouraged worker. 
A)  not in the labor force. 
B)  in the labor force. 
C)  employed. 
D)  a discouraged worker.

Question 20

Which of the following best explains the growth in output per worker hour during the 20th century?

Accepted Answer

A)  the quality of labor declined during that period 
B)  the quantity of labor increased during that period 
C)  the quality of capital improved during that period 
D)  the worker-capital ratio increased during that period 
A)  the quality of labor declined during that period 
B)  the quantity of labor increased during that period 
C)  the quality of capital improved during that period 
D)  the worker-capital ratio increased during that period

Exam 7: Unemployment, Inflation, and Long-Run Growth

Hurricane Katrina caused the price of oil to increase. This is an example of

U.S. productivity grew the fastest in which of the following decades?

Per capita output is a measure of economic welfare of a country.

The economy is in a recession and the housing market is in a slump. As a result of this, a real estate firm lays off half of its real estate agents. This is an example of

Bob is not considered unemployed if he

If 2015 is the base year and the inflation rate between 2015 and 2016 is 7.1, the price index in 2016 is

If the CPI in 2015 was 112 and the CPI in 2016 was 116, then the rate of inflation between 2015 and 2016 was

The ________ in unemployment that occurs during recessions and depressions is called ________ unemployment.

A decrease in search costs will decrease cyclical unemployment.

A price index that tends to be a leading indicator of future inflation rates is the

The United States has not experienced high inflation since the 1970s.

Output in an economy can be increased by

During the early 1990s, companies started downsizing. One of the results of this downsizing was the permanent reduction in the number of middle management positions. This change in the way businesses operate would have

Productivity is output per worker hour.

If the number of unemployed equals 10,000, the number of employed equals 70,000, and the number not in the labor force is 20,000, the labor-force participation rate is

Refer to the information provided in Table 7.3 below to answer the questions that follow. Table 7.3 -Refer to Table 7.3. The employment rate is

If the number of unemployed equals 30,000, the number of employed equals 60,000, and the number not in the labor force is 10,000, the labor-force participation rate

A prolonged and deep recession is a

Cheryl graduated from college a month ago and is now without work. She accepted a job that will start next month. Today, Cheryl is

Which of the following best explains the growth in output per worker hour during the 20th century?

The Scope and Method of Economics

The Economic Problem: Scarcity and Choice

Demand, Supply, and Market Equilibrium

Demand and Supply Applications

Introduction to Macroeconomics

Measuring National Output and National Income

Aggregate Expenditure and Equilibrium Output

The Government and Fiscal Policy

Money, the Federal Reserve, and the Interest Rate

The Determination of Aggregate Output, the Price Level, and the Interest Rate

Policy Effects and Cost Shocks in the Asad Model

The Labor Market in the Macroeconomy

Financial Crises, Stabilization, and Deficits

Household and Firm Behavior in the Macroeconomy: a Further Look

Long-Run Growth

Alternative Views in Macroeconomics

International Trade, Comparative Advantage, and Protectionism

Open-Economy Macroeconomics: the Balance of Payments and Exchange Rates

Economic Growth in Developing Economies

Critical Thinking About Research

Filters

The in unemployment that occurs during recessions and depressions is called unemployment.