Question 1

The Weekly Jobs Report contains an estimate of the number of persons filing for unemployment benefits for the first time.

Accepted Answer

A) True 
 B)False

Question 2

Suppose that anticipated inflation is 4% for the coming year, with loan contracts set at 7% with the expectation of a 3% return after inflation. If the actual inflation rate at the end of the year is 2%:

Accepted Answer

A)  creditors gain at the expense of debtors. 
B)  people on a fixed income see the purchasing power of their incomes rising. 
C)  debtors gain at the expense of creditors. 
D)  there is a redistribution of income from creditors to debtors. 
A)  creditors gain at the expense of debtors. 
B)  people on a fixed income see the purchasing power of their incomes rising. 
C)  debtors gain at the expense of creditors. 
D)  there is a redistribution of income from creditors to debtors.

Question 3

Jennifer received news that she is getting a 5% raise. However, the Bureau of Labor Statistics just reported that prices are rising by 7%. Based on the given information, which of the following is true?

Accepted Answer

A)  Jennifer's purchasing power will rise by 2%. 
B)  Jennifer is losing purchasing power by 2%. 
C)  Inflation has no impact on purchasing power. 
D)  Jennifer's purchasing power will rise by 7%. 
A)  Jennifer's purchasing power will rise by 2%. 
B)  Jennifer is losing purchasing power by 2%. 
C)  Inflation has no impact on purchasing power. 
D)  Jennifer's purchasing power will rise by 7%.

Question 4

For your purchasing power to stay the same, your wages must:

Accepted Answer

A)  increase faster than the rate of inflation. 
B)  increase at the same rate as inflation. 
C)  decrease as the rate of inflation increases. 
D)  increase more slowly than the rate of inflation. 
A)  increase faster than the rate of inflation. 
B)  increase at the same rate as inflation. 
C)  decrease as the rate of inflation increases. 
D)  increase more slowly than the rate of inflation.

Question 5

The GDP deflator shows that since the mid-1980s, the U.S. economy has had:

Accepted Answer

A)  deflation. 
B)  hyperinflation. 
C)  an increasing inflation rate. 
D)  disinflation. 
A)  deflation. 
B)  hyperinflation. 
C)  an increasing inflation rate. 
D)  disinflation.

Question 6

Core inflation is found by removing _____ from the consumer price index.

Accepted Answer

A)  housing 
B)  medical care 
C)  food and energy 
D)  producer prices 
A)  housing 
B)  medical care 
C)  food and energy 
D)  producer prices

Question 7

A politician who calls a rate of inflation of 15% hyperinflation would be criticized by an economist for using inaccurate terminology.

Accepted Answer

A) True 
 B)False

Question 8

(Table) The associated table provides a hypothetical bundle of goods and their respective prices for three different years. If 2014 is selected as the base year, the cost of the market basket in 2017 would be would be: $$\begin{array} { | l | c | c | c | c | c | c | } 
\hline \text { Product } & \mathbf { Q } _ { 2010 } & \mathbf { Q } _ { 2014 } & \mathbf { Q } _ { 2017 } & \mathbf { P } _ { 2010 } & \mathbf { P } _ { 2014 } & \mathbf { P } _ { 2017 } \
\hline \text { Apples (5-lb. bag) } & 10 & 11 & 12 & \$ 3.00 & \$ 4.00 & \$ 4.25 \
\hline \text { Coffee beans (1-lb. bag) } & 50 & 50 & 55 & \$ 8.00 & \$ 9.00 & \$ 10.00 \
\hline \text { Cereal (28-oz. box) } & 20 & 25 & 29 & \$ 3.50 & \$ 3.75 & \$ 3.75 \
\hline
\end{array}$$

Accepted Answer

A)  $520.50. 
B)  $587.75. 
C)  $640.50. 
D)  $651.75. 
A)  $520.50. 
B)  $587.75. 
C)  $640.50. 
D)  $651.75.

Question 9

The time it takes for the unemployment rate to return to the nonaccelerating inflation rate of unemployment will vary.

Accepted Answer

A) True 
 B)False

Question 10

The chained consumer price index (CPI) for urban consumers does a better job in approximating the cost-of-living index than does the CPI.

Accepted Answer

A) True 
 B)False

Question 11

An economy has a population of 226,500, of whom 12,500 are unemployed and actively seeking work, and 35,000 have given up looking for a job. Also, 28,000 people work part-time, and 151,000 people work full-time. This economy's unemployment rate is _____.

Accepted Answer

A)  7.0% 
B)  21.0% 
C)  5.5% 
D)  21.1% 
A)  7.0% 
B)  21.0% 
C)  5.5% 
D)  21.1%

Question 12

The household survey provides a detailed demographic picture of _____, and the payroll survey provides detailed information _____.

Accepted Answer

A)  consumer spending; about business spending 
B)  consumer spending; by industry and region 
C)  the labor market; about business spending 
D)  the labor market; by industry and region 
A)  consumer spending; about business spending 
B)  consumer spending; by industry and region 
C)  the labor market; about business spending 
D)  the labor market; by industry and region

Question 13

If the current year's consumer price index is 214 and last year's consumer price index was 209, then the rate of inflation is:

Accepted Answer

A)  2.4%. 
B)  5%. 
C)  3%. 
D)  2.8%. 
A)  2.4%. 
B)  5%. 
C)  3%. 
D)  2.8%.

Question 14

The nation of Workovia has a population of 15 million, of whom, 10 million are in the labor force and 9 million are working. Workovia's unemployment rate is:

Accepted Answer

A)  27%. 
B)  60%. 
C)  33%. 
D)  10%. 
A)  27%. 
B)  60%. 
C)  33%. 
D)  10%.

Question 15

Which of the following statements is incorrect?

Accepted Answer

A)  The natural rate of unemployment is generally considered the equivalent of full employment. 
B)  The natural rate of unemployment consists of only frictional or structural unemployment. 
C)  The natural rate of unemployment is the level at which inflationary pressures in the economy are at their maximum. 
D)  The natural rate of unemployment is when cyclical unemployment is zero. 
A)  The natural rate of unemployment is generally considered the equivalent of full employment. 
B)  The natural rate of unemployment consists of only frictional or structural unemployment. 
C)  The natural rate of unemployment is the level at which inflationary pressures in the economy are at their maximum. 
D)  The natural rate of unemployment is when cyclical unemployment is zero.

Question 16

People are counted as unemployed if they only held temporary jobs during the survey week.

Accepted Answer

A) True 
 B)False

Question 17

From a macroeconomic perspective, policymakers can be most effective with policies that target cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 18

(Table) According to the table, nominal GDP for 2013 is approximately: $$\begin{array} { | l | c | c | c | } 
\hline & \mathbf { 2 0 1 2 } & \mathbf { 2 0 1 3 } & \mathbf { 2 0 1 4 } \
\hline \text { Nominal GDP (billions of S) } & 7,280 & & 8,000 \
\hline \text { Real GDP (billions of S) } & 7,280 & 7,425 & \
\hline \text { GDP deflator } & & 103.6 & 106.1 \
\hline
\end{array}$$

Accepted Answer

A)  $7,292 billion. 
B)  $7,492 billion. 
C)  $7,692 billion. 
D)  $7,892 billion. 
A)  $7,292 billion. 
B)  $7,492 billion. 
C)  $7,692 billion. 
D)  $7,892 billion.

Question 19

Frictional unemployment refers primarily to workers between jobs.

Accepted Answer

A) True 
 B)False

Question 20

A consumer price index change from 130 to 135 reflects a 3.85% inflation rate.

Accepted Answer

A) True 
 B)False

The Weekly Jobs Report contains an estimate of the number of persons filing for unemployment benefits for the first time.

Suppose that anticipated inflation is 4% for the coming year, with loan contracts set at 7% with the expectation of a 3% return after inflation. If the actual inflation rate at the end of the year is 2%:

Jennifer received news that she is getting a 5% raise. However, the Bureau of Labor Statistics just reported that prices are rising by 7%. Based on the given information, which of the following is true?

For your purchasing power to stay the same, your wages must:

The GDP deflator shows that since the mid-1980s, the U.S. economy has had:

Core inflation is found by removing _____ from the consumer price index.

A politician who calls a rate of inflation of 15% hyperinflation would be criticized by an economist for using inaccurate terminology.

The time it takes for the unemployment rate to return to the nonaccelerating inflation rate of unemployment will vary.

The chained consumer price index (CPI) for urban consumers does a better job in approximating the cost-of-living index than does the CPI.

An economy has a population of 226,500, of whom 12,500 are unemployed and actively seeking work, and 35,000 have given up looking for a job. Also, 28,000 people work part-time, and 151,000 people work full-time. This economy's unemployment rate is _____.

The household survey provides a detailed demographic picture of _, and the payroll survey provides detailed information _.

If the current year's consumer price index is 214 and last year's consumer price index was 209, then the rate of inflation is:

The nation of Workovia has a population of 15 million, of whom, 10 million are in the labor force and 9 million are working. Workovia's unemployment rate is:

Which of the following statements is incorrect?

People are counted as unemployed if they only held temporary jobs during the survey week.

From a macroeconomic perspective, policymakers can be most effective with policies that target cyclical unemployment.

(Table) According to the table, nominal GDP for 2013 is approximately: Nominal GDP (billions of S) 7,280 8,000 Real GDP (billions of S) 7,280 7,425 GDP deflator 103.6 106.1

Frictional unemployment refers primarily to workers between jobs.

A consumer price index change from 130 to 135 reflects a 3.85% inflation rate.

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Economic Growth

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomics

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Exam 6: Measuring Inflation and Unemployment

The Weekly Jobs Report contains an estimate of the number of persons filing for unemployment benefits for the first time.

Suppose that anticipated inflation is 4% for the coming year, with loan contracts set at 7% with the expectation of a 3% return after inflation. If the actual inflation rate at the end of the year is 2%:

Jennifer received news that she is getting a 5% raise. However, the Bureau of Labor Statistics just reported that prices are rising by 7%. Based on the given information, which of the following is true?

For your purchasing power to stay the same, your wages must:

The GDP deflator shows that since the mid-1980s, the U.S. economy has had:

Core inflation is found by removing _____ from the consumer price index.

A politician who calls a rate of inflation of 15% hyperinflation would be criticized by an economist for using inaccurate terminology.

The time it takes for the unemployment rate to return to the nonaccelerating inflation rate of unemployment will vary.

The chained consumer price index (CPI) for urban consumers does a better job in approximating the cost-of-living index than does the CPI.

An economy has a population of 226,500, of whom 12,500 are unemployed and actively seeking work, and 35,000 have given up looking for a job. Also, 28,000 people work part-time, and 151,000 people work full-time. This economy's unemployment rate is _____.

The household survey provides a detailed demographic picture of _____, and the payroll survey provides detailed information _____.

If the current year's consumer price index is 214 and last year's consumer price index was 209, then the rate of inflation is:

The nation of Workovia has a population of 15 million, of whom, 10 million are in the labor force and 9 million are working. Workovia's unemployment rate is:

Which of the following statements is incorrect?

People are counted as unemployed if they only held temporary jobs during the survey week.

From a macroeconomic perspective, policymakers can be most effective with policies that target cyclical unemployment.

(Table) According to the table, nominal GDP for 2013 is approximately: Nominal GDP (billions of S) 7,280 8,000 Real GDP (billions of S) 7,280 7,425 GDP deflator 103.6 106.1

Frictional unemployment refers primarily to workers between jobs.

A consumer price index change from 130 to 135 reflects a 3.85% inflation rate.

Exploring Economics

Production, Economic Growth, and Trade

Supply and Demand

Markets and Government

Introduction to Macroeconomics

Economic Growth

Aggregate Expenditures

Aggregate Demand and Supply

Fiscal Policy and Debt

Saving, Investment, and the Financial System

Money Creation and the Federal Reserve

Monetary Policy

Macroeconomic Policy: Challenges in a Global Economy

International Trade

Open Economy Macroeconomics

Filters

The household survey provides a detailed demographic picture of _, and the payroll survey provides detailed information _.