Question 1

When the economy is at full employment the unemployment rate equals the natural unemployment rate.

Accepted Answer

A) True 
 B)False

Question 2

In a period of rapid, unexpected inflation, resources can be lost

Accepted Answer

A)  when firms use resources to forecast inflation. 
B)  when firms invest in research and development instead of forecasting inflation. 
C)  because rapid inflation almost always turns into a hyperinflation. 
D)  Both answers B and C are correct. 
A)  when firms use resources to forecast inflation. 
B)  when firms invest in research and development instead of forecasting inflation. 
C)  because rapid inflation almost always turns into a hyperinflation. 
D)  Both answers B and C are correct.

Question 3

Full- time students and prisoners are _ _.

Accepted Answer

A)  in the labor force 
B)  not in the labor force 
C)  counted as discouraged workers 
D)  counted as unemployed 
A)  in the labor force 
B)  not in the labor force 
C)  counted as discouraged workers 
D)  counted as unemployed

Question 4

If nominal GDP is $230 for a period and real GDP is $200 for the same period, what is the GDP deflator for this period?

Accepted Answer

The GDP deflator equ

Question 5

The table below shows data regarding Germany's labor market.   The data show that Germany's employment- to- population ratio is in 2007.

Accepted Answer

A)  67 percent 
B)  92 percent 
C)  80 percent 
D)  47.5 percent 
A)  67 percent 
B)  92 percent 
C)  80 percent 
D)  47.5 percent

Question 6

Can frictional unemployment ever be totally eliminated? Explain your answer.

Accepted Answer

Frictional unemployment arises from norm

Question 7

Including discouraged workers in the calculation of the unemployment rate would

Accepted Answer

A)  lower the reported rate. 
B)  change the reported rate, but in an unpredictable manner. 
C)  increase the reported rate. 
D)  not change the reported rate. 
A)  lower the reported rate. 
B)  change the reported rate, but in an unpredictable manner. 
C)  increase the reported rate. 
D)  not change the reported rate.

Question 8

In late 2006, the unemployment rate increased from 4.4 percent to 4.5%. It was reported that new jo were created in several sectors including accounting, engineering services, computer design and ed These increases offset job losses in the construction and automobile industries. At the
Based on the story, the labor market reflects

Accepted Answer

A)  efficiency wages. 
B)  cyclical unemployment. 
C)  a negative output gap. 
D)  a positive output gap. 
A)  efficiency wages. 
B)  cyclical unemployment. 
C)  a negative output gap. 
D)  a positive output gap.

Question 9

Unemployment as measured includes the total number of people who

Accepted Answer

A)  are available and looking for work but unable to find employment. 
B)  would like to have a job but have stopped seeking work. 
C)  would like to have a full- time job but are working part- time. 
D)  have jobs or are currently looking for jobs. 
A)  are available and looking for work but unable to find employment. 
B)  would like to have a job but have stopped seeking work. 
C)  would like to have a full- time job but are working part- time. 
D)  have jobs or are currently looking for jobs.

Question 10

If the economy enters a recession,

Accepted Answer

A)  cyclical unemployment increases. 
B)  structural unemployment decreases. 
C)  frictional unemployment increases. 
D)  the number of workers on layoff decreases. 
A)  cyclical unemployment increases. 
B)  structural unemployment decreases. 
C)  frictional unemployment increases. 
D)  the number of workers on layoff decreases.

Question 11

The current U.S. population is about 300 million yet the current U.S. labor force is only about 150 million. What subtractions are made from the population number to set it equal to the labor force?

Accepted Answer

The population is first reduced by elimi

Question 12

The employment- to- population ratio is

Accepted Answer

A)  64 percent. 
B)  50 percent. 
C)  67 percent. 
D)  62 percent. 
A)  64 percent. 
B)  50 percent. 
C)  67 percent. 
D)  62 percent.

Question 13

Joe decided to quit his job at the University Computer Center because he did not find the work challenging enough. Joe is currently looking for a better job. Therefore, Joe would be labeled as a

Accepted Answer

A)  job loser. 
B)  reentrant. 
C)  discouraged worker. 
D)  job leaver. 
A)  job loser. 
B)  reentrant. 
C)  discouraged worker. 
D)  job leaver.

Question 14

The fluctuates more than does the _.

Accepted Answer

A)  employment- to- population ratio; unemployment rate 
B)  labor force participation rate; employment- to- population ratio 
C)  employment- to- population ratio; labor force participation rate 
D)  labor force participation rate; unemployment rate 
A)  employment- to- population ratio; unemployment rate 
B)  labor force participation rate; employment- to- population ratio 
C)  employment- to- population ratio; labor force participation rate 
D)  labor force participation rate; unemployment rate

Question 15

The type of unemployment created by the normal rate of reentry and entry into the labor force is

Accepted Answer

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

Question 16

Suppose the country of Quasiland experienced a decrease in real GDP and people were laid off from their jobs. The people would be considered part of

Accepted Answer

A)  discouraged workers. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  frictional unemployment. 
A)  discouraged workers. 
B)  structural unemployment. 
C)  cyclical unemployment. 
D)  frictional unemployment.

Question 17

-Using the information in the table above, calculate the unemployment rate.

Accepted Answer

A)  7.7 percent 
B)  53.3 percent 
C)  30.8 percent 
D)  13.3 percent 
A)  7.7 percent 
B)  53.3 percent 
C)  30.8 percent 
D)  13.3 percent

Question 18

If unemployment is at the natural rate, then there

Accepted Answer

A)  is no cyclical unemployment. 
B)  will be only cyclical unemployment. 
C)  is no frictional unemployment. 
D)  will be cyclical and frictional unemployment but not structural unemployment. 
A)  is no cyclical unemployment. 
B)  will be only cyclical unemployment. 
C)  is no frictional unemployment. 
D)  will be cyclical and frictional unemployment but not structural unemployment.

Question 19

Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is
And the new unemployment rate is .

Accepted Answer

A)  94.1 million; 5.9 percent 
B)  93.9 million; 6.1 percent 
C)  100 million; 6.1 percent 
D)  100.1 million; 5.8 percent 
A)  94.1 million; 5.9 percent 
B)  93.9 million; 6.1 percent 
C)  100 million; 6.1 percent 
D)  100.1 million; 5.8 percent

Question 20

Full employment exists when

Accepted Answer

A)  there is no cyclical unemployment. 
B)  there is only frictional and structural unemployment. 
C)  the economy is at the natural unemployment rate. 
D)  All of the above answers are correct. 
A)  there is no cyclical unemployment. 
B)  there is only frictional and structural unemployment. 
C)  the economy is at the natural unemployment rate. 
D)  All of the above answers are correct.

When the economy is at full employment the unemployment rate equals the natural unemployment rate.

In a period of rapid, unexpected inflation, resources can be lost

Full- time students and prisoners are _ _.

If nominal GDP is $230 for a period and real GDP is $200 for the same period, what is the GDP deflator for this period?

The table below shows data regarding Germany's labor market. The data show that Germany's employment- to- population ratio is in 2007.

Can frictional unemployment ever be totally eliminated? Explain your answer.

Including discouraged workers in the calculation of the unemployment rate would

Unemployment as measured includes the total number of people who

If the economy enters a recession,

The current U.S. population is about 300 million yet the current U.S. labor force is only about 150 million. What subtractions are made from the population number to set it equal to the labor force?

The employment- to- population ratio is

Joe decided to quit his job at the University Computer Center because he did not find the work challenging enough. Joe is currently looking for a better job. Therefore, Joe would be labeled as a

The fluctuates more than does the _.

The type of unemployment created by the normal rate of reentry and entry into the labor force is

Suppose the country of Quasiland experienced a decrease in real GDP and people were laid off from their jobs. The people would be considered part of

-Using the information in the table above, calculate the unemployment rate.

If unemployment is at the natural rate, then there

Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is And the new unemployment rate is .

Full employment exists when

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 5: Monitoring Jobs and Inflation

When the economy is at full employment the unemployment rate equals the natural unemployment rate.

In a period of rapid, unexpected inflation, resources can be lost

Full- time students and prisoners are _ _.

If nominal GDP is $230 for a period and real GDP is $200 for the same period, what is the GDP deflator for this period?

The table below shows data regarding Germany's labor market. The data show that Germany's employment- to- population ratio is in 2007.

Can frictional unemployment ever be totally eliminated? Explain your answer.

Including discouraged workers in the calculation of the unemployment rate would

Unemployment as measured includes the total number of people who

If the economy enters a recession,

The current U.S. population is about 300 million yet the current U.S. labor force is only about 150 million. What subtractions are made from the population number to set it equal to the labor force?

The employment- to- population ratio is

Joe decided to quit his job at the University Computer Center because he did not find the work challenging enough. Joe is currently looking for a better job. Therefore, Joe would be labeled as a

The fluctuates more than does the _.

The type of unemployment created by the normal rate of reentry and entry into the labor force is

Suppose the country of Quasiland experienced a decrease in real GDP and people were laid off from their jobs. The people would be considered part of

-Using the information in the table above, calculate the unemployment rate.

If unemployment is at the natural rate, then there

Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is And the new unemployment rate is .

Full employment exists when

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: They Keynesian Model

U.S. Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters