Question 1

The household survey is compiled from firms who answer questions about the number of persons who are employed and on the company payroll.

Accepted Answer

A) True 
 B)False

Question 2

An advantage of the establishment survey over the household survey of the labor market is that the establishment survey

Accepted Answer

A) is based on actual payrolls,rather than on unverified answers. 
B) includes the number of self-employed persons. 
C) includes persons employed at newly opened firms. 
D) provides an estimate of the number of persons unemployed. 
A) is based on actual payrolls,rather than on unverified answers. 
B) includes the number of self-employed persons. 
C) includes persons employed at newly opened firms. 
D) provides an estimate of the number of persons unemployed.

Question 3

Cyclical unemployment is the result of

Accepted Answer

A) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. 
B) the search process of matching workers with jobs. 
C) the ups and downs in inflation. 
D) a slowdown in the economy. 
A) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. 
B) the search process of matching workers with jobs. 
C) the ups and downs in inflation. 
D) a slowdown in the economy.

Question 4

How would the unemployment rate and the labor force participation rate change if discouraged workers were counted as unemployed rather than counted as out of the labor force? Show using the formula for both measurements.

Accepted Answer

The unemployment rate is calculated as:

Question 5

You borrow $10,000 from a bank for one year at a nominal interest rate of 5%.If inflation over the year is 2%,what is the real interest rate you are paying?

Accepted Answer

A) 2% 
B) 2.5% 
C) 3% 
D) 5% 
A) 2% 
B) 2.5% 
C) 3% 
D) 5%

Question 6

Unemployment caused by a business cycle recession is called cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 7

Sarah is a full-time student who is not looking for work.What kind of unemployment is Sarah experiencing?

Accepted Answer

A) cyclical 
B) structural 
C) frictional 
D) Sarah is not experiencing unemployment of any kind,because she is not currently part of the labor force. 
A) cyclical 
B) structural 
C) frictional 
D) Sarah is not experiencing unemployment of any kind,because she is not currently part of the labor force.

Question 8

When the price of gasoline rises,some consumers begin riding their bikes more frequently or riding the bus instead of driving their cars.The fact that the CPI does not fully account for such changes in consumer behavior is called

Accepted Answer

A) outlet bias. 
B) increase in quality bias. 
C) substitution bias. 
D) discrimination bias. 
A) outlet bias. 
B) increase in quality bias. 
C) substitution bias. 
D) discrimination bias.

Question 9

The unemployment rate equals the number of unemployed divided by the ________,all times 100.

Accepted Answer

A) number of employed 
B) labor force 
C) working-age population 
D) total population 
A) number of employed 
B) labor force 
C) working-age population 
D) total population

Question 10

The Bureau of Labor Statistics counts as employed people who work part-time,but would prefer to work full-time.Suppose the people who had part-time jobs,but wanted full-time jobs,were counted as unemployed.Explain how the unemployment rate and the labor force participation rate would change.

Accepted Answer

The unemployment rate would increase and

Question 11

To reduce the bias in the consumer price index,the Bureau of Labor Statistics

Accepted Answer

A) updates the market basket every two years,rather than every 10 years. 
B) updates the market basket every 10 years,rather than every two years. 
C) incorporates substitutions by consumers when prices of specific products rise rapidly. 
D) incorporates substitutions by consumers when prices of specific products fall rapidly. 
A) updates the market basket every two years,rather than every 10 years. 
B) updates the market basket every 10 years,rather than every two years. 
C) incorporates substitutions by consumers when prices of specific products rise rapidly. 
D) incorporates substitutions by consumers when prices of specific products fall rapidly.

Question 12

If the number of unemployed workers is 200 million,the number of employed workers is 300 million,and the working-age population is 800 million,what is the labor force participation rate?

Accepted Answer

A) 12.5% 
B) 37.5% 
C) 40% 
D) 62.5% 
A) 12.5% 
B) 37.5% 
C) 40% 
D) 62.5%

Question 13

Which of the following explains the changes in the U.S.adult male labor force participation rate since 1948?

Accepted Answer

A) More men are joining the military as compared to the past. 
B) More men are retiring later in life as compared to the past. 
C) Fewer men consider themselves discouraged workers as compared to the past. 
D) Younger men are remaining in school longer as compared to the past. 
A) More men are joining the military as compared to the past. 
B) More men are retiring later in life as compared to the past. 
C) Fewer men consider themselves discouraged workers as compared to the past. 
D) Younger men are remaining in school longer as compared to the past.

Question 14

Explain why you would rather be a borrower during a period of unexpected rising inflation,and a lender during a period of unexpected declining inflation.

Accepted Answer

The nominal interest rate includes a cha

Question 15

Which of the following would reduce the labor force participation rate,all else equal?

Accepted Answer

A) an increase in the number of people in the labor force 
B) an increase in the unemployment rate 
C) a decrease in the unemployment rate 
D) an increase in the working-age population 
A) an increase in the number of people in the labor force 
B) an increase in the unemployment rate 
C) a decrease in the unemployment rate 
D) an increase in the working-age population

Question 16

The United States has ________ social insurance programs,and generally has a ________ unemployment rate,as compared to Canada and Western Europe.

Accepted Answer

A) less generous;lower 
B) less generous;greater 
C) more generous;lower 
D) more generous;greater 
A) less generous;lower 
B) less generous;greater 
C) more generous;lower 
D) more generous;greater

Question 17

If inflation increases unexpectedly,then

Accepted Answer

A) borrowers pay a higher real interest rate than they expected. 
B) lenders receive a lower real interest rate than they expected. 
C) lenders gain and borrowers gain. 
D) neither borrowers nor lenders lose. 
A) borrowers pay a higher real interest rate than they expected. 
B) lenders receive a lower real interest rate than they expected. 
C) lenders gain and borrowers gain. 
D) neither borrowers nor lenders lose.

Question 18

The natural rate of unemployment is the amount of unemployment

Accepted Answer

A) associated with the business cycle. 
B) equal to frictional plus structural unemployment. 
C) that exists when the economy goes into recession. 
D) that exists when the economy is in an expansion. 
A) associated with the business cycle. 
B) equal to frictional plus structural unemployment. 
C) that exists when the economy goes into recession. 
D) that exists when the economy is in an expansion.

Question 19

If the price level rose in three consecutive years from 100 to 120 to 140,then the annual inflation rate over those years would

Accepted Answer

A) increase. 
B) remain the same. 
C) decrease. 
D) equal 20%. 
A) increase. 
B) remain the same. 
C) decrease. 
D) equal 20%.

Question 20

Frictional unemployment is the result of

Accepted Answer

A) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. 
B) the search process of matching workers with jobs. 
C) the ups and downs in inflation. 
D) a slowdown in the economy. 
A) a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. 
B) the search process of matching workers with jobs. 
C) the ups and downs in inflation. 
D) a slowdown in the economy.

The household survey is compiled from firms who answer questions about the number of persons who are employed and on the company payroll.

An advantage of the establishment survey over the household survey of the labor market is that the establishment survey

Cyclical unemployment is the result of

How would the unemployment rate and the labor force participation rate change if discouraged workers were counted as unemployed rather than counted as out of the labor force? Show using the formula for both measurements.

You borrow $10,000 from a bank for one year at a nominal interest rate of 5%.If inflation over the year is 2%,what is the real interest rate you are paying?

Unemployment caused by a business cycle recession is called cyclical unemployment.

Sarah is a full-time student who is not looking for work.What kind of unemployment is Sarah experiencing?

When the price of gasoline rises,some consumers begin riding their bikes more frequently or riding the bus instead of driving their cars.The fact that the CPI does not fully account for such changes in consumer behavior is called

The unemployment rate equals the number of unemployed divided by the ________,all times 100.

The Bureau of Labor Statistics counts as employed people who work part-time,but would prefer to work full-time.Suppose the people who had part-time jobs,but wanted full-time jobs,were counted as unemployed.Explain how the unemployment rate and the labor force participation rate would change.

To reduce the bias in the consumer price index,the Bureau of Labor Statistics

If the number of unemployed workers is 200 million,the number of employed workers is 300 million,and the working-age population is 800 million,what is the labor force participation rate?

Which of the following explains the changes in the U.S.adult male labor force participation rate since 1948?

Explain why you would rather be a borrower during a period of unexpected rising inflation,and a lender during a period of unexpected declining inflation.

Which of the following would reduce the labor force participation rate,all else equal?

The United States has social insurance programs,and generally has a unemployment rate,as compared to Canada and Western Europe.

If inflation increases unexpectedly,then

The natural rate of unemployment is the amount of unemployment

If the price level rose in three consecutive years from 100 to 120 to 140,then the annual inflation rate over those years would

Frictional unemployment is the result of

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation,unemployment,and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 9: Unemployment and Inflation

The household survey is compiled from firms who answer questions about the number of persons who are employed and on the company payroll.

An advantage of the establishment survey over the household survey of the labor market is that the establishment survey

Cyclical unemployment is the result of

How would the unemployment rate and the labor force participation rate change if discouraged workers were counted as unemployed rather than counted as out of the labor force? Show using the formula for both measurements.

You borrow $10,000 from a bank for one year at a nominal interest rate of 5%.If inflation over the year is 2%,what is the real interest rate you are paying?

Unemployment caused by a business cycle recession is called cyclical unemployment.

Sarah is a full-time student who is not looking for work.What kind of unemployment is Sarah experiencing?

When the price of gasoline rises,some consumers begin riding their bikes more frequently or riding the bus instead of driving their cars.The fact that the CPI does not fully account for such changes in consumer behavior is called

The unemployment rate equals the number of unemployed divided by the ________,all times 100.

The Bureau of Labor Statistics counts as employed people who work part-time,but would prefer to work full-time.Suppose the people who had part-time jobs,but wanted full-time jobs,were counted as unemployed.Explain how the unemployment rate and the labor force participation rate would change.

To reduce the bias in the consumer price index,the Bureau of Labor Statistics

If the number of unemployed workers is 200 million,the number of employed workers is 300 million,and the working-age population is 800 million,what is the labor force participation rate?

Which of the following explains the changes in the U.S.adult male labor force participation rate since 1948?

Explain why you would rather be a borrower during a period of unexpected rising inflation,and a lender during a period of unexpected declining inflation.

Which of the following would reduce the labor force participation rate,all else equal?

The United States has ________ social insurance programs,and generally has a ________ unemployment rate,as compared to Canada and Western Europe.

If inflation increases unexpectedly,then

The natural rate of unemployment is the amount of unemployment

If the price level rose in three consecutive years from 100 to 120 to 140,then the annual inflation rate over those years would

Frictional unemployment is the result of

Economics: Foundations and Models

Trade-Offs, comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency,government Price Setting,and Taxes

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Gdp: Measuring Total Production and Income

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money,banks,and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation,unemployment,and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

The United States has social insurance programs,and generally has a unemployment rate,as compared to Canada and Western Europe.