Question 1

Explain what economists mean by full employment and why this rate of unemployment is not zero.

Accepted Answer

Full employment occurs in the macro econ

Question 2

An increase in unemployment insurance payments would,in effect,________ the amount of time spent searching for a job,which would increase ________ unemployment.

Accepted Answer

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

Question 3

If your nominal wage rises more slowly than the price level,we can say your real wage has ________ and the purchasing power of a dollar has ________.

Accepted Answer

A) fallen;fallen 
B) fallen;risen 
C) risen;risen 
D) risen;fallen 
A) fallen;fallen 
B) fallen;risen 
C) risen;risen 
D) risen;fallen

Question 4

If the minimum wage is set above the market wage,

Accepted Answer

A) the quantity of labor supplied will be below the quantity of labor demanded. 
B) unemployment will rise. 
C) highly-skilled workers will have a harder time finding jobs. 
D) All of the above are correct. 
A) the quantity of labor supplied will be below the quantity of labor demanded. 
B) unemployment will rise. 
C) highly-skilled workers will have a harder time finding jobs. 
D) All of the above are correct.

Question 5

Describe the three types of unemployment.

Accepted Answer

Frictional unemployment is short-term un

Question 6

Discouraged workers are classified by the BLS as

Accepted Answer

A) part of the labor force. 
B) out of the labor force. 
C) unemployed. 
D) employed. 
E) part-time employees. 
A) part of the labor force. 
B) out of the labor force. 
C) unemployed. 
D) employed. 
E) part-time employees.

Question 7

If the number employed is 190 million,the working-age population is 230 million,and the number unemployed is 10 million,then the unemployment rate is

Accepted Answer

A) 5%. 
B) 5.2%. 
C) 8%. 
D) 10%. 
E) 50%. 
A) 5%. 
B) 5.2%. 
C) 8%. 
D) 10%. 
E) 50%.

Question 8

The advice to "retrain" would be most appropriate for which of the following types of unemployment?

Accepted Answer

A) frictional unemployment 
B) structural unemployment 
C) cyclical unemployment 
D) core unemployment 
A) frictional unemployment 
B) structural unemployment 
C) cyclical unemployment 
D) core unemployment

Question 9

During a deflationary period,

Accepted Answer

A) the nominal interest rate is less than the real interest rate. 
B) the real interest rate is less than the nominal interest rate. 
C) the price level rises. 
D) the nominal interest rate does not change. 
A) the nominal interest rate is less than the real interest rate. 
B) the real interest rate is less than the nominal interest rate. 
C) the price level rises. 
D) the nominal interest rate does not change.

Question 10

Table 9-4
Base Year (2011)2016
  
-Refer to Table 9-4.Assume the market basket for the consumer price index has two products - meat and potatoes - with the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals

Accepted Answer

A) 125. 
B) 129. 
C) 135. 
D) 141. 
A) 125. 
B) 129. 
C) 135. 
D) 141.

Question 11

Table 9-5
  
-Refer to Table 9-5.Consider the following values of the consumer price index for 2015 and 2016.The inflation rate for 2016 was equal to

Accepted Answer

A) 215 percent. 
B) 21.5 percent. 
C) 8.0 percent. 
D) 3.9 percent. 
A) 215 percent. 
B) 21.5 percent. 
C) 8.0 percent. 
D) 3.9 percent.

Question 12

The Bureau of Labor Statistics has taken several steps to reduce the bias in the consumer price index.Which of the following is not one of the steps taken to reduce the bias?

Accepted Answer

A) using statistical methods to reduce the size of the quality bias 
B) updating the market basket every two years,rather than every 10 years 
C) incorporating substitutions by consumers when prices of specific products rise rapidly 
D) conducting a point-of-purchase survey to track where consumers actually make their purchases 
A) using statistical methods to reduce the size of the quality bias 
B) updating the market basket every two years,rather than every 10 years 
C) incorporating substitutions by consumers when prices of specific products rise rapidly 
D) conducting a point-of-purchase survey to track where consumers actually make their purchases

Question 13

What is outlet bias?

Accepted Answer

A) the tendency for households to spend more money over time 
B) the tendency for households to spend their money at discount stores as prices rise 
C) the tendency for the quality of products to improve over time even though the CPI does not measure changes in quality 
D) the tendency for consumers to purchase newer,more technologically advanced products even though they have higher prices 
A) the tendency for households to spend more money over time 
B) the tendency for households to spend their money at discount stores as prices rise 
C) the tendency for the quality of products to improve over time even though the CPI does not measure changes in quality 
D) the tendency for consumers to purchase newer,more technologically advanced products even though they have higher prices

Question 14

We say that the economy is at full employment if the unemployment rate is equal to

Accepted Answer

A) zero. 
B) the natural rate of unemployment. 
C) the amount of cyclical unemployment. 
D) the sum of frictional and cyclical unemployment. 
E) the sum of structural and cyclical unemployment. 
A) zero. 
B) the natural rate of unemployment. 
C) the amount of cyclical unemployment. 
D) the sum of frictional and cyclical unemployment. 
E) the sum of structural and cyclical unemployment.

Question 15

If cyclical unemployment is eliminated in the economy,then

Accepted Answer

A) the economy is considered to be at full employment. 
B) the unemployment rate is below the natural rate of unemployment. 
C) the unemployment rate is above the natural rate of unemployment. 
D) the economy is at less than full employment. 
A) the economy is considered to be at full employment. 
B) the unemployment rate is below the natural rate of unemployment. 
C) the unemployment rate is above the natural rate of unemployment. 
D) the economy is at less than full employment.

Question 16

Minimum wage laws cause unemployment because the legal minimum wage is set

Accepted Answer

A) below the market wage,causing labor demand to be greater than labor supply. 
B) below the market wage,causing labor demand to be less than labor supply. 
C) above the market wage,causing labor demand to be greater than labor supply. 
D) above the market wage,causing labor demand to be less than labor supply. 
E) too low. 
A) below the market wage,causing labor demand to be greater than labor supply. 
B) below the market wage,causing labor demand to be less than labor supply. 
C) above the market wage,causing labor demand to be greater than labor supply. 
D) above the market wage,causing labor demand to be less than labor supply. 
E) too low.

Question 17

Table 9-13
  
-Refer to Table 9-13.Consider a simple economy that produces only three products: tacos,earplugs,and toothbrushes.Use the information in the table to calculate the inflation rate for 2016,as measured by the consumer price index.

Accepted Answer

Total expenditures for 2001 = (5 × $1.50

Question 18

Explain how the CPI is constructed.

Accepted Answer

The Bureau of Labor statistics surveys 1

Question 19

What is the natural rate of unemployment,and what types of unemployment constitute the natural rate of unemployment?

Accepted Answer

The natural rate of unemployment is the

Question 20

Table 9-18
  
-Refer to Table 9-18.Looking at the table above,what is the rate of growth of real average hourly earnings from 2015 to 2016?

Accepted Answer

A) 7.8% 
B) 6.25% 
C) 4% 
D) -4% 
A) 7.8% 
B) 6.25% 
C) 4% 
D) -4%

Explain what economists mean by full employment and why this rate of unemployment is not zero.

An increase in unemployment insurance payments would,in effect, the amount of time spent searching for a job,which would increase unemployment.

If your nominal wage rises more slowly than the price level,we can say your real wage has and the purchasing power of a dollar has .

If the minimum wage is set above the market wage,

Describe the three types of unemployment.

Discouraged workers are classified by the BLS as

If the number employed is 190 million,the working-age population is 230 million,and the number unemployed is 10 million,then the unemployment rate is

The advice to "retrain" would be most appropriate for which of the following types of unemployment?

During a deflationary period,

Table 9-4 Base Year (2011)2016 -Refer to Table 9-4.Assume the market basket for the consumer price index has two products - meat and potatoes - with the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals

Table 9-5 -Refer to Table 9-5.Consider the following values of the consumer price index for 2015 and 2016.The inflation rate for 2016 was equal to

The Bureau of Labor Statistics has taken several steps to reduce the bias in the consumer price index.Which of the following is not one of the steps taken to reduce the bias?

What is outlet bias?

We say that the economy is at full employment if the unemployment rate is equal to

If cyclical unemployment is eliminated in the economy,then

Minimum wage laws cause unemployment because the legal minimum wage is set

Table 9-13 -Refer to Table 9-13.Consider a simple economy that produces only three products: tacos,earplugs,and toothbrushes.Use the information in the table to calculate the inflation rate for 2016,as measured by the consumer price index.

Explain how the CPI is constructed.

What is the natural rate of unemployment,and what types of unemployment constitute the natural rate of unemployment?

Table 9-18 -Refer to Table 9-18.Looking at the table above,what is the rate of growth of real average hourly earnings from 2015 to 2016?

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

Explain what economists mean by full employment and why this rate of unemployment is not zero.

An increase in unemployment insurance payments would,in effect,________ the amount of time spent searching for a job,which would increase ________ unemployment.

If your nominal wage rises more slowly than the price level,we can say your real wage has ________ and the purchasing power of a dollar has ________.

If the minimum wage is set above the market wage,

Describe the three types of unemployment.

Discouraged workers are classified by the BLS as

If the number employed is 190 million,the working-age population is 230 million,and the number unemployed is 10 million,then the unemployment rate is

The advice to "retrain" would be most appropriate for which of the following types of unemployment?

During a deflationary period,

Table 9-4 Base Year (2011)2016 -Refer to Table 9-4.Assume the market basket for the consumer price index has two products - meat and potatoes - with the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals

Table 9-5 -Refer to Table 9-5.Consider the following values of the consumer price index for 2015 and 2016.The inflation rate for 2016 was equal to

The Bureau of Labor Statistics has taken several steps to reduce the bias in the consumer price index.Which of the following is not one of the steps taken to reduce the bias?

What is outlet bias?

We say that the economy is at full employment if the unemployment rate is equal to

If cyclical unemployment is eliminated in the economy,then

Minimum wage laws cause unemployment because the legal minimum wage is set

Table 9-13 -Refer to Table 9-13.Consider a simple economy that produces only three products: tacos,earplugs,and toothbrushes.Use the information in the table to calculate the inflation rate for 2016,as measured by the consumer price index.

Explain how the CPI is constructed.

What is the natural rate of unemployment,and what types of unemployment constitute the natural rate of unemployment?

Table 9-18 -Refer to Table 9-18.Looking at the table above,what is the rate of growth of real average hourly earnings from 2015 to 2016?

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

An increase in unemployment insurance payments would,in effect, the amount of time spent searching for a job,which would increase unemployment.

If your nominal wage rises more slowly than the price level,we can say your real wage has and the purchasing power of a dollar has .