Question 1

The natural unemployment rate is the unemployment rate that exists when there is no

Accepted Answer

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

Question 2

If the economy enters an expansion,

Accepted Answer

A)  cyclical unemployment increases. 
B)  cyclical unemployment decreases. 
C)  structural unemployment decreases. 
D)  structural unemployment increases. 
A)  cyclical unemployment increases. 
B)  cyclical unemployment decreases. 
C)  structural unemployment decreases. 
D)  structural unemployment increases.

Question 3

Inflation is a problem when

Accepted Answer

A)  it causes the value of money to vary unpredictably. 
B)  it is unpredictable. 
C)  it causes resources to be diverted from productive uses. 
D)  All of the above answers are correct. 
A)  it causes the value of money to vary unpredictably. 
B)  it is unpredictable. 
C)  it causes resources to be diverted from productive uses. 
D)  All of the above answers are correct.

Question 4

Cyclical unemployment

Accepted Answer

A)  occurs when technology improvements change job requirements. 
B)  fluctuates over the business cycle. 
C)  is due mainly to job leavers. 
D)  may increase or decrease during an expansion. 
A)  occurs when technology improvements change job requirements. 
B)  fluctuates over the business cycle. 
C)  is due mainly to job leavers. 
D)  may increase or decrease during an expansion.

Question 5

List and define the three types of unemployment.

Accepted Answer

The three types are frictional, structur

Question 6

Structural unemployment usually lasts longer than frictional unemployment.)

Accepted Answer

A) True 
 B)False

Question 7

Hyperinflation is defined as

Accepted Answer

A)  declining inflation rates. 
B)  rising but low inflation rates. 
C)  very low inflation rates. 
D)  very high inflation rates. 
A)  declining inflation rates. 
B)  rising but low inflation rates. 
C)  very low inflation rates. 
D)  very high inflation rates.

Question 8

The employment-to-population ratio is defined as

Accepted Answer

A)  total employment divided by the labor force then multiplied by 100. 
B)  total employment divided by labor hours then multiplied by 100. 
C)  the labor force divided by the working-age population then multiplied by 100. 
D)  total employment divided by the working-age population then multiplied by 100. 
A)  total employment divided by the labor force then multiplied by 100. 
B)  total employment divided by labor hours then multiplied by 100. 
C)  the labor force divided by the working-age population then multiplied by 100. 
D)  total employment divided by the working-age population then multiplied by 100.

Question 9

The best example of a cyclically unemployed individual is

Accepted Answer

A)  Charles who lost his job as a real estate salesperson when the housing market went soft because of a recession. 
B)  Mary who lost her job in the textile industry following a decrease in the tariff on textiles. 
C)  Alice who quit her job to enter college. 
D)  Bob who has just graduated from college and is entering the labor market. 
A)  Charles who lost his job as a real estate salesperson when the housing market went soft because of a recession. 
B)  Mary who lost her job in the textile industry following a decrease in the tariff on textiles. 
C)  Alice who quit her job to enter college. 
D)  Bob who has just graduated from college and is entering the labor market.

Question 10

Cyclical unemployment occurs when

Accepted Answer

A)  individuals enter into the labor market making the rounds of potential employers. 
B)  individuals give up the search for employment. 
C)  a business cycle recession decreases employment. 
D)  individuals with skills no longer valued in the labor market cannot find employment. 
A)  individuals enter into the labor market making the rounds of potential employers. 
B)  individuals give up the search for employment. 
C)  a business cycle recession decreases employment. 
D)  individuals with skills no longer valued in the labor market cannot find employment.

Question 11

If the CPI for this year is 220 and the CPI for last year was 215, the inflation rate is

Accepted Answer

A)  5 percent. 
B)  10 percent. 
C)  just over 2 percent. 
D)  just over 5 percent. 
A)  5 percent. 
B)  10 percent. 
C)  just over 2 percent. 
D)  just over 5 percent.

Question 12

If the labor force participation rate is rising and the working-age population is not changing, then the

Accepted Answer

A)  number of unemployed people is falling and the size of the labor force is rising. 
B)  number of unemployed people is rising and the size of the labor force is falling. 
C)  size of the labor force is falling. 
D)  size of the labor force is rising. 
A)  number of unemployed people is falling and the size of the labor force is rising. 
B)  number of unemployed people is rising and the size of the labor force is falling. 
C)  size of the labor force is falling. 
D)  size of the labor force is rising.

Question 13

The working-age population is divided between those people in the labor force and those people unemployed.

Accepted Answer

A) True 
 B)False

Question 14

$$\begin{array} { | l | l | l | l | } 
\hline \begin{array} { l } 
\text { Total } \
\text { population } \
\text { (millions) }
\end{array} & \begin{array} { l } 
\text { Currently } \
\text { employed } \
\text { (millions) }
\end{array} & \begin{array} { l } 
\text { Not working } \
\text { and looking } \
\text { for work } \
\text { (millions) }
\end{array} & \begin{array} { l } 
\text { Want to work but } \
\text { no longer looking } \
\text { for work } \
\text { (millions) }
\end{array} \
\hline 80 & 40 & 2 & 4 \
\hline
\end{array}$$
-In the table above, the size of the labor force is

Accepted Answer

A)  42 million. 
B)  46 million. 
C)  40 million. 
D)  80 million. 
A)  42 million. 
B)  46 million. 
C)  40 million. 
D)  80 million.

Question 15

Suppose initially that the working-age population is 220 million, the labor force is 150 million, and the official U-3 unemployment rate is 10 percent. 5 million new jobs are created and filled by 5 million people who had previously been discouraged workers. What is the new U-3 unemployment rate?

Accepted Answer

A)  6.25 percent 
B)  6.7 percent 
C)  8.7 percent 
D)  9.7 percent 
A)  6.25 percent 
B)  6.7 percent 
C)  8.7 percent 
D)  9.7 percent

Question 16

If the basket of goods and services used to calculate the CPI cost $200 in the reference base period and $450 in a later year, the CPI for the latter year equals

Accepted Answer

A)  325. 
B)  450. 
C)  200. 
D)  225. 
A)  325. 
B)  450. 
C)  200. 
D)  225.

Question 17

The table below shows data regarding Germany?s labor market. $$\begin{array} { | c | l | c | l | } 
\hline \text { Year } & \begin{array}{c}
\text { Labor Force } \
\text { (millions) }
\end{array} & \begin{array}{c}
\text { Number of } \
\text { Employed } \
\text { (millions) }
\end{array} & \begin{array}{c}
\text { Population } \
\text { (millions) }
\end{array} \\hline 2006 & 43.7 & 39.01 & 82.3 \
\hline 2007 & 43.7 & 39.06 & 82.2 \
\hline 2008 & 43.6 & 39.8 & 82.1 \
\hline
\end{array}$$ The data show that Germany?s unemployment rate in 2007 was

Accepted Answer

A)  9.8 percent. 
B)  5.6 percent 
C)  8.4 percent 
D)  More information is needed to answer this question. 
A)  9.8 percent. 
B)  5.6 percent 
C)  8.4 percent 
D)  More information is needed to answer this question.

Question 18

The bias in the CPI typically

Accepted Answer

A)  cannot be measured or estimated. 
B)  understates inflation. 
C)  about half the time overstates and about half the time understates the inflation rate. 
D)  overstates inflation. 
A)  cannot be measured or estimated. 
B)  understates inflation. 
C)  about half the time overstates and about half the time understates the inflation rate. 
D)  overstates inflation.

Question 19

What is the relationship over the business cycle of potential GDP and real GDP?

Accepted Answer

The level of output that the economy wou

Question 20

Cyclical unemployment__________ .

Accepted Answer

A)  grows at the same rate as potential GDP 
B)  decreases during an expansion 
C)  decreases during a recession 
D)  is zero at a business-cycle trough 
A)  grows at the same rate as potential GDP 
B)  decreases during an expansion 
C)  decreases during a recession 
D)  is zero at a business-cycle trough

The natural unemployment rate is the unemployment rate that exists when there is no

If the economy enters an expansion,

Inflation is a problem when

Cyclical unemployment

List and define the three types of unemployment.

Structural unemployment usually lasts longer than frictional unemployment.)

Hyperinflation is defined as

The employment-to-population ratio is defined as

The best example of a cyclically unemployed individual is

Cyclical unemployment occurs when

If the CPI for this year is 220 and the CPI for last year was 215, the inflation rate is

If the labor force participation rate is rising and the working-age population is not changing, then the

The working-age population is divided between those people in the labor force and those people unemployed.

Total population (millions) Currently employed (millions) Not working and looking for work (millions) Want to work but no longer looking for work (millions) 80 40 2 4 -In the table above, the size of the labor force is

Suppose initially that the working-age population is 220 million, the labor force is 150 million, and the official U-3 unemployment rate is 10 percent. 5 million new jobs are created and filled by 5 million people who had previously been discouraged workers. What is the new U-3 unemployment rate?

If the basket of goods and services used to calculate the CPI cost $200 in the reference base period and $450 in a later year, the CPI for the latter year equals

The table below shows data regarding Germany?s labor market. Year Labor Force (millions) Number of Employed (millions) Population (millions) 2006 43.7 39.01 82.3 2007 43.7 39.06 82.2 2008 43.6 39.8 82.1 The data show that Germany?s unemployment rate in 2007 was

The bias in the CPI typically

What is the relationship over the business cycle of potential GDP and real GDP?

Cyclical unemployment__________ .

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: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters

Exam 5: Monitoring Jobs and Inflation

The natural unemployment rate is the unemployment rate that exists when there is no

If the economy enters an expansion,

Inflation is a problem when

Cyclical unemployment

List and define the three types of unemployment.

Structural unemployment usually lasts longer than frictional unemployment.)

Hyperinflation is defined as

The employment-to-population ratio is defined as

The best example of a cyclically unemployed individual is

Cyclical unemployment occurs when

If the CPI for this year is 220 and the CPI for last year was 215, the inflation rate is

If the labor force participation rate is rising and the working-age population is not changing, then the

The working-age population is divided between those people in the labor force and those people unemployed.

Total population (millions) Currently employed (millions) Not working and looking for work (millions) Want to work but no longer looking for work (millions) 80 40 2 4 -In the table above, the size of the labor force is

Suppose initially that the working-age population is 220 million, the labor force is 150 million, and the official U-3 unemployment rate is 10 percent. 5 million new jobs are created and filled by 5 million people who had previously been discouraged workers. What is the new U-3 unemployment rate?

If the basket of goods and services used to calculate the CPI cost $200 in the reference base period and $450 in a later year, the CPI for the latter year equals

The table below shows data regarding Germany?s labor market. Year Labor Force (millions) Number of Employed (millions) Population (millions) 2006 43.7 39.01 82.3 2007 43.7 39.06 82.2 2008 43.6 39.8 82.1 The data show that Germany?s unemployment rate in 2007 was

The bias in the CPI typically

What is the relationship over the business cycle of potential GDP and real GDP?

Cyclical unemployment__________ .

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: the Keynesian Model

U.S Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Review

Filters