Question 1

Which of the following types of unemployment is the hardest to reduce?

Accepted Answer

A) Cyclical unemployment 
B) Structural unemployment 
C) Voluntary unemployment 
D) Frictional unemployment 
E) Seasonal unemployment 
A) Cyclical unemployment 
B) Structural unemployment 
C) Voluntary unemployment 
D) Frictional unemployment 
E) Seasonal unemployment B

Question 2

Which of the following groups experiences high unemployment rates?

Accepted Answer

A) White-collar professionals 
B) Attorneys 
C) Technical workers 
D) Blue-collar workers 
E) Web page designers 
A) White-collar professionals 
B) Attorneys 
C) Technical workers 
D) Blue-collar workers 
E) Web page designers D

Question 3

A decrease in the interest rate,other things constant,will:

Accepted Answer

A) shift the supply of loanable funds curve to the left. 
B) shift the supply of loanable funds curve to the right. 
C) decrease the quantity of loanable funds demanded. 
D) decrease the quantity of loanable funds supplied. 
E) shift the demand for loanable funds curve to the right. 
A) shift the supply of loanable funds curve to the left. 
B) shift the supply of loanable funds curve to the right. 
C) decrease the quantity of loanable funds demanded. 
D) decrease the quantity of loanable funds supplied. 
E) shift the demand for loanable funds curve to the right. D

Question 4

A decrease in the interest rate,other things constant,will:

Accepted Answer

A) shift the demand for loanable funds curve to the right. 
B) shift the demand for loanable funds curve to the left. 
C) increase the quantity of loanable funds demanded. 
D) increase the quantity of loanable funds supplied. 
E) shift the supply of loanable funds curve to the right. 
A) shift the demand for loanable funds curve to the right. 
B) shift the demand for loanable funds curve to the left. 
C) increase the quantity of loanable funds demanded. 
D) increase the quantity of loanable funds supplied. 
E) shift the supply of loanable funds curve to the right.

Question 5

Full employment:

Accepted Answer

A) exists when,on average,nearly two out of three adults in the labor force are employed. 
B) exists when everyone who wants a job has one. 
C) exists when the unemployment rate is zero. 
D) exists when everyone in the labor force has a job. 
E) will always include some unemployment. 
A) exists when,on average,nearly two out of three adults in the labor force are employed. 
B) exists when everyone who wants a job has one. 
C) exists when the unemployment rate is zero. 
D) exists when everyone in the labor force has a job. 
E) will always include some unemployment.

Question 6

Since the end of World War II,the U.S.price level has:

Accepted Answer

A) increased tenfold. 
B) increased by an average of 10 percent each year. 
C) increased and decreased with equal regularity,leaving the price level almost constant. 
D) increased by 50 percent. 
E) doubled. 
A) increased tenfold. 
B) increased by an average of 10 percent each year. 
C) increased and decreased with equal regularity,leaving the price level almost constant. 
D) increased by 50 percent. 
E) doubled.

Question 7

Consider an economy with an adult population of 100,50 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The labor force participation rate is _____.

Accepted Answer

A) 100 percent 
B) 60 percent 
C) 50 percent 
D) 40 percent 
E) 10 percent 
A) 100 percent 
B) 60 percent 
C) 50 percent 
D) 40 percent 
E) 10 percent

Question 8

During periods when the inflation rate fluctuates widely,_____.

Accepted Answer

A) the nominal interest rate and the real interest rate are identical 
B) all money prices rise at the same rate,causing relative prices to increase 
C) suppliers link the selling prices of their goods to the overall inflation rate 
D) uncertainty about changes in relative prices causes a decrease in economic efficiency 
E) all money prices increase at the same rate,leaving relative prices constant 
A) the nominal interest rate and the real interest rate are identical 
B) all money prices rise at the same rate,causing relative prices to increase 
C) suppliers link the selling prices of their goods to the overall inflation rate 
D) uncertainty about changes in relative prices causes a decrease in economic efficiency 
E) all money prices increase at the same rate,leaving relative prices constant

Question 9

During periods of high inflation,people want to hold as much money as possible.

Accepted Answer

A) True 
 B)False

Question 10

In 2004,Jamal lost his job as a shipbuilder.His shipyard never reopened,and his very specialized skills as a shipbuilder were no longer in demand.Jamal's unemployment is best classified as _____.

Accepted Answer

A) cyclical 
B) structural 
C) seasonal 
D) frictional 
E) voluntary 
A) cyclical 
B) structural 
C) seasonal 
D) frictional 
E) voluntary

Question 11

The labor force participation rate for women in the United States has _____.

Accepted Answer

A) stayed the same over the last 30 years 
B) increased significantly since the 1950s 
C) decreased significantly since the 1950s 
D) fluctuated substantially both upward and downward since the 1950s 
E) increased only very slightly since the 1950s 
A) stayed the same over the last 30 years 
B) increased significantly since the 1950s 
C) decreased significantly since the 1950s 
D) fluctuated substantially both upward and downward since the 1950s 
E) increased only very slightly since the 1950s

Question 12

In April 2010,the U.S.economy added 290,000 jobs but the unemployment rate still increased from 9.7 percent to 9.9 percent.Which of the following best explains this situation?

Accepted Answer

A) The size of the labor force shrunk. 
B) The number of unemployed workers also increased,but by a smaller percentage. 
C) The number of illegal immigrants increased substantially. 
D) The number of discouraged workers increased substantially. 
E) The number of unemployed workers also increased,but by an even greater percentage. 
A) The size of the labor force shrunk. 
B) The number of unemployed workers also increased,but by a smaller percentage. 
C) The number of illegal immigrants increased substantially. 
D) The number of discouraged workers increased substantially. 
E) The number of unemployed workers also increased,but by an even greater percentage.

Question 13

Juanita worked for a defense contractor in the United States.During the 2008 recession,the government cut spending and Juanita and ninety-nine others were laid off.In such a case,the unemployment Juanita is experiencing is _____.

Accepted Answer

A) cyclical 
B) structural 
C) seasonal 
D) frictional 
E) voluntary 
A) cyclical 
B) structural 
C) seasonal 
D) frictional 
E) voluntary

Question 14

If the official unemployment rate increases from December to January because the Christmas season is over,we can conclude that _____ is responsible for the increase.

Accepted Answer

A) seasonal unemployment 
B) cyclical unemployment 
C) structural unemployment 
D) frictional unemployment 
E) underemployment 
A) seasonal unemployment 
B) cyclical unemployment 
C) structural unemployment 
D) frictional unemployment 
E) underemployment

Question 15

The benefits paid by the largest pension program in the United States are:

Accepted Answer

A) not adjusted for changes in the price level. 
B) adjusted for changes in the price level. 
C) revised every five years. 
D) adjusted for changes in the nominal rate of interest. 
E) adjusted for changes in the real rate of interest. 
A) not adjusted for changes in the price level. 
B) adjusted for changes in the price level. 
C) revised every five years. 
D) adjusted for changes in the nominal rate of interest. 
E) adjusted for changes in the real rate of interest.

Question 16

After graduating from Harvard Law School,Anne started looking for a job.She could not find a job after looking for one week.Which of the following is true in this case?

Accepted Answer

A) This is an example of frictional unemployment. 
B) This is an example of cyclical unemployment. 
C) This is an example of seasonal unemployment. 
D) She is underemployed. 
E) She is a discouraged worker. 
A) This is an example of frictional unemployment. 
B) This is an example of cyclical unemployment. 
C) This is an example of seasonal unemployment. 
D) She is underemployed. 
E) She is a discouraged worker.

Question 17

Inflation is defined as a sustained increase in an economy's price level.

Accepted Answer

A) True 
 B)False

Question 18

Most of the unemployment during the Great Depression was cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 19

Inflation can only be caused by an increase in aggregate demand.

Accepted Answer

A) True 
 B)False

Question 20

During periods of inflation,all prices increase.

Accepted Answer

A) True 
 B)False

Which of the following types of unemployment is the hardest to reduce?

Which of the following groups experiences high unemployment rates?

A decrease in the interest rate,other things constant,will:

A decrease in the interest rate,other things constant,will:

Full employment:

Since the end of World War II,the U.S.price level has:

Consider an economy with an adult population of 100,50 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The labor force participation rate is _____.

During periods when the inflation rate fluctuates widely,_____.

During periods of high inflation,people want to hold as much money as possible.

In 2004,Jamal lost his job as a shipbuilder.His shipyard never reopened,and his very specialized skills as a shipbuilder were no longer in demand.Jamal's unemployment is best classified as _____.

The labor force participation rate for women in the United States has _____.

In April 2010,the U.S.economy added 290,000 jobs but the unemployment rate still increased from 9.7 percent to 9.9 percent.Which of the following best explains this situation?

Juanita worked for a defense contractor in the United States.During the 2008 recession,the government cut spending and Juanita and ninety-nine others were laid off.In such a case,the unemployment Juanita is experiencing is _____.

If the official unemployment rate increases from December to January because the Christmas season is over,we can conclude that _____ is responsible for the increase.

The benefits paid by the largest pension program in the United States are:

After graduating from Harvard Law School,Anne started looking for a job.She could not find a job after looking for one week.Which of the following is true in this case?

Inflation is defined as a sustained increase in an economy's price level.

Most of the unemployment during the Great Depression was cyclical unemployment.

Inflation can only be caused by an increase in aggregate demand.

During periods of inflation,all prices increase.

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Us Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

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Exam 7: Unemployment and Inflation

Which of the following types of unemployment is the hardest to reduce?

Which of the following groups experiences high unemployment rates?

A decrease in the interest rate,other things constant,will:

A decrease in the interest rate,other things constant,will:

Full employment:

Since the end of World War II,the U.S.price level has:

Consider an economy with an adult population of 100,50 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The labor force participation rate is _____.

During periods when the inflation rate fluctuates widely,_____.

During periods of high inflation,people want to hold as much money as possible.

In 2004,Jamal lost his job as a shipbuilder.His shipyard never reopened,and his very specialized skills as a shipbuilder were no longer in demand.Jamal's unemployment is best classified as _____.

The labor force participation rate for women in the United States has _____.

In April 2010,the U.S.economy added 290,000 jobs but the unemployment rate still increased from 9.7 percent to 9.9 percent.Which of the following best explains this situation?

Juanita worked for a defense contractor in the United States.During the 2008 recession,the government cut spending and Juanita and ninety-nine others were laid off.In such a case,the unemployment Juanita is experiencing is _____.

If the official unemployment rate increases from December to January because the Christmas season is over,we can conclude that _____ is responsible for the increase.

The benefits paid by the largest pension program in the United States are:

After graduating from Harvard Law School,Anne started looking for a job.She could not find a job after looking for one week.Which of the following is true in this case?

Inflation is defined as a sustained increase in an economy's price level.

Most of the unemployment during the Great Depression was cyclical unemployment.

Inflation can only be caused by an increase in aggregate demand.

During periods of inflation,all prices increase.

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the U S Economy

Us Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters