Question 1

A person is considered to be unemployed if he or she has been either actively or passively looking for work.

Accepted Answer

A) True 
 B)False

Question 2

If the nominal GDP is $13 trillion for a given year and the GDP deflator for that year is 115, then the real GDP is:

Accepted Answer

A)  $11.3 trillion. 
B)  $14.95 trillion. 
C)  $12.0 trillion. 
D)  $13.0 trillion. 
A)  $11.3 trillion. 
B)  $14.95 trillion. 
C)  $12.0 trillion. 
D)  $13.0 trillion.

Question 3

(Table) According to the table, what is the unemployment rate of this economy? $$\begin{array} { | l | r | } 
\hline \text { Population } & 500 \
\hline \text { Number employed } & 300 \
\hline \text { Number unemployed } & 50 \
\hline
\end{array}$$

Accepted Answer

A)  10% 
B)  14.3% 
C)  16.67% 
D)  25% 
A)  10% 
B)  14.3% 
C)  16.67% 
D)  25%

Question 4

The consumer price index measures private goods as well as public goods.

Accepted Answer

A) True 
 B)False

Question 5

The goal of unemployment policy is to eliminate frictional unemployment.

Accepted Answer

A) True 
 B)False

Question 6

A consumer price index of 107 means that prices rose by 7% from the previous year.

Accepted Answer

A) True 
 B)False

Question 7

Measuring changes in a fixed basket of goods to assess changes in price is a _____ method.

Accepted Answer

A)  cost-of-goods index 
B)  cost-of-living index 
C)  cost-of-production 
D)  utility maximization 
A)  cost-of-goods index 
B)  cost-of-living index 
C)  cost-of-production 
D)  utility maximization

Question 8

The broadest measure of inflation is:

Accepted Answer

A)  the consumer price index. 
B)  the GDP deflator. 
C)  the personal consumption expenditures index. 
D)  the producer price index. 
A)  the consumer price index. 
B)  the GDP deflator. 
C)  the personal consumption expenditures index. 
D)  the producer price index.

Question 9

(Table) According to the table, real GDP for 2014 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)  $7,540 billion. 
B)  $7,894 billion. 
C)  $8,106 billion. 
D)  $8,488 billion. 
A)  $7,540 billion. 
B)  $7,894 billion. 
C)  $8,106 billion. 
D)  $8,488 billion.

Question 10

Suppose the town of Treeville has a population of 200, of which 120 are in the labor force. Of those in the labor force, 100 are employed and 20 are unemployed. The unemployment rate in Treeville is _____.

Accepted Answer

A)  10% 
B)  17% 
C)  20% 
D)  60% 
A)  10% 
B)  17% 
C)  20% 
D)  60%

Question 11

Which of the following groups benefit from an unanticipated rise in the inflation rate?

Accepted Answer

A)  homeowners with fixed-rate mortgages 
B)  elderly people living on a fixed income 
C)  creditors or lenders 
D)  workers on contracts without escalator clauses 
A)  homeowners with fixed-rate mortgages 
B)  elderly people living on a fixed income 
C)  creditors or lenders 
D)  workers on contracts without escalator clauses

Question 12

Which of the following assumptions is NOT a problem in using the consumer price index (CPI) to accurately state the rate of inflation?

Accepted Answer

A)  The CPI assumes that people do not substitute goods. 
B)  The CPI does not account for quality changes. 
C)  The CPI does not include new products. 
D)  The CPI does not deal with producer prices. 
A)  The CPI assumes that people do not substitute goods. 
B)  The CPI does not account for quality changes. 
C)  The CPI does not include new products. 
D)  The CPI does not deal with producer prices.

Question 13

Which one of the following would NOT lead to higher prices?

Accepted Answer

A)  strong consumer demand 
B)  higher gas prices 
C)  an increase in the supply of money 
D)  an increase in the supply of food 
A)  strong consumer demand 
B)  higher gas prices 
C)  an increase in the supply of money 
D)  an increase in the supply of food

Question 14

The nonaccelerating inflation rate of unemployment is a measure of the natural rate of inflation.

Accepted Answer

A) True 
 B)False

Question 15

An economy has 100,000 residents. There are 46,000 people with full-time jobs, 14,000 with part-time jobs, and 4,000 unemployed people who are actively looking for work. The unemployment rate for this economy is 6%.

Accepted Answer

A) True 
 B)False

Question 16

Prices from about _____ goods and services are collected each month by Bureau of Labor Statistics data collectors to be used in calculating the consumer price index.

Accepted Answer

A)  800 
B)  8,000 
C)  80,000 
D)  800,000 
A)  800 
B)  8,000 
C)  80,000 
D)  800,000

Question 17

Inflation is a:

Accepted Answer

A)  steady rise in the unemployment rate across all labor markets. 
B)  general rise in interest rates. 
C)  decline in confidence in prices. 
D)  general rise in prices. 
A)  steady rise in the unemployment rate across all labor markets. 
B)  general rise in interest rates. 
C)  decline in confidence in prices. 
D)  general rise in prices.

Question 18

The unemployment rate is defined as the _____ divided by the _____.

Accepted Answer

A)  number unemployed; population 
B)  number unemployed; number working 
C)  number unemployed; number in the labor force 
D)  number passively looking for a job; number in the labor force 
A)  number unemployed; population 
B)  number unemployed; number working 
C)  number unemployed; number in the labor force 
D)  number passively looking for a job; number in the labor force

Question 19

Kyle is working part-time as a bartender while he auditions for his dream job as a member of a ballet company. According to the Bureau of Labor Statistics, Kyle is employed.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following statements is NOT correct?

Accepted Answer

A)  Discouraged workers have stopped actively seeking work. 
B)  Discouraged workers are not classified as unemployed. 
C)  Discouraged workers are considered underemployed. 
D)  Discouraged workers are considered part of the leisure class, and not part of the labor force. 
A)  Discouraged workers have stopped actively seeking work. 
B)  Discouraged workers are not classified as unemployed. 
C)  Discouraged workers are considered underemployed. 
D)  Discouraged workers are considered part of the leisure class, and not part of the labor force.

A person is considered to be unemployed if he or she has been either actively or passively looking for work.

If the nominal GDP is $13 trillion for a given year and the GDP deflator for that year is 115, then the real GDP is:

(Table) According to the table, what is the unemployment rate of this economy? Population 500 Number employed 300 Number unemployed 50

The consumer price index measures private goods as well as public goods.

The goal of unemployment policy is to eliminate frictional unemployment.

A consumer price index of 107 means that prices rose by 7% from the previous year.

Measuring changes in a fixed basket of goods to assess changes in price is a _____ method.

The broadest measure of inflation is:

(Table) According to the table, real GDP for 2014 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

Suppose the town of Treeville has a population of 200, of which 120 are in the labor force. Of those in the labor force, 100 are employed and 20 are unemployed. The unemployment rate in Treeville is _____.

Which of the following groups benefit from an unanticipated rise in the inflation rate?

Which of the following assumptions is NOT a problem in using the consumer price index (CPI) to accurately state the rate of inflation?

Which one of the following would NOT lead to higher prices?

The nonaccelerating inflation rate of unemployment is a measure of the natural rate of inflation.

An economy has 100,000 residents. There are 46,000 people with full-time jobs, 14,000 with part-time jobs, and 4,000 unemployed people who are actively looking for work. The unemployment rate for this economy is 6%.

Prices from about _____ goods and services are collected each month by Bureau of Labor Statistics data collectors to be used in calculating the consumer price index.

Inflation is a:

The unemployment rate is defined as the _ divided by the _.

Kyle is working part-time as a bartender while he auditions for his dream job as a member of a ballet company. According to the Bureau of Labor Statistics, Kyle is employed.

Which of the following statements is NOT correct?

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

A person is considered to be unemployed if he or she has been either actively or passively looking for work.

If the nominal GDP is $13 trillion for a given year and the GDP deflator for that year is 115, then the real GDP is:

(Table) According to the table, what is the unemployment rate of this economy? Population 500 Number employed 300 Number unemployed 50

The consumer price index measures private goods as well as public goods.

The goal of unemployment policy is to eliminate frictional unemployment.

A consumer price index of 107 means that prices rose by 7% from the previous year.

Measuring changes in a fixed basket of goods to assess changes in price is a _____ method.

The broadest measure of inflation is:

(Table) According to the table, real GDP for 2014 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

Suppose the town of Treeville has a population of 200, of which 120 are in the labor force. Of those in the labor force, 100 are employed and 20 are unemployed. The unemployment rate in Treeville is _____.

Which of the following groups benefit from an unanticipated rise in the inflation rate?

Which of the following assumptions is NOT a problem in using the consumer price index (CPI) to accurately state the rate of inflation?

Which one of the following would NOT lead to higher prices?

The nonaccelerating inflation rate of unemployment is a measure of the natural rate of inflation.

An economy has 100,000 residents. There are 46,000 people with full-time jobs, 14,000 with part-time jobs, and 4,000 unemployed people who are actively looking for work. The unemployment rate for this economy is 6%.

Prices from about _____ goods and services are collected each month by Bureau of Labor Statistics data collectors to be used in calculating the consumer price index.

Inflation is a:

The unemployment rate is defined as the _____ divided by the _____.

Kyle is working part-time as a bartender while he auditions for his dream job as a member of a ballet company. According to the Bureau of Labor Statistics, Kyle is employed.

Which of the following statements is NOT correct?

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 unemployment rate is defined as the _ divided by the _.