Exam 28: The Labor Market in the Macroeconomy

The functioning of the labor market primarily affects the shape of the

Cyclical unemployment is that which rises in recessions and shrinks during expansions.

An increase in inflationary expectations shifts the economy's short run Phillips curve to the left.

Refer to the information provided in Figure 28.1 below to answer the question(s) that follow. Figure 28.1 -Refer to Figure 28.1. At a wage rate of $________, there is a surplus of labor equal to ________ million people.

Suppose that cruise ship employees are laid off during a period of significant decrease in demand for cruise vacations because they have a 3-year contract which has locked their wages into place. This example is consistent with the

Refer to the information provided in Figure 28.1 below to answer the question(s) that follow. Figure 28.1 -Refer to Figure 28.1. At wage rate $6, there is a ________ of labor equal to ________ million people.

If the measured unemployment rate is 8% and the natural unemployment rate is 3%, then

Refer to the information provided in Figure 28.8 below to answer the question(s) that follow. Figure 28.8 -Refer to Figure 28.8. Expected inflation at Point A ________ expected inflation at Point C.

Refer to the information provided in Figure 28.2 below to answer the question(s) that follow. Figure 28.2 -Refer to Figure 28.2. If this firm pays the efficient wage of $11

Minimum wage is an example of a price ________, and results in a ________ of labor.

Employment tends to rise when

According to the ________ economists, those who are not working have chosen not to work at the market wage.

If a policy is implemented that reduces unemployment benefits by 50 percent and reduces by 50 percent the time the unemployed can collect these benefits, then this would most likely shift the

Refer to the information provided in Figure 28.7 below to answer the question(s) that follow. Figure 28.7 -Refer to Figure 28.7. The expected inflation rate is 6% if the economy is

According to classical economists, the only types of unemployment that exist in an economy are

The government raises the marginal income tax rates so that after-tax wages are decreased. This most likely will shift the labor

Explicit contracts generally stipulate workers' wages for a period of

The economy experiences both a falling price level and falling unemployment when

Explicit contracts help explain the existence of sticky wages.

If the wage rate in the labor market is $17 and the productivity of workers decreases, which of the following statements is incorrect?