Question 1

Which of the following groups tends to have the highest unemployment rate in the United States?

Accepted Answer

A) African American teenagers 
B) Workers,age 25 or older,who are college graduates 
C) White women 
D) Workers,25 years of age or older,who are high school dropouts 
E) White teenagers 
A) African American teenagers 
B) Workers,age 25 or older,who are college graduates 
C) White women 
D) Workers,25 years of age or older,who are high school dropouts 
E) White teenagers

Question 2

If the CPI in the United States was 150 in 2003 and 160 in 2004,the inflation rate over the year is _____.

Accepted Answer

A) 10 percent 
B) 20 percent 
C) 7 percent 
D) 30 percent 
E) 50 percent 
A) 10 percent 
B) 20 percent 
C) 7 percent 
D) 30 percent 
E) 50 percent

Question 3

The nominal interest rate is equal to the real interest rate minus the anticipated inflation rate.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is true of unemployment?

Accepted Answer

A) Cyclical unemployment decreases during recessions and increases during expansions. 
B) Some unemployment exists even when the economy is healthy and growing. 
C) Unemployment and inflation are not related. 
D) People who are willing and able to work but have given up the search for a job are considered unemployed. 
E) Voluntary unemployment refers to a situation in which people who really do not want to work only pretend to look for jobs. 
A) Cyclical unemployment decreases during recessions and increases during expansions. 
B) Some unemployment exists even when the economy is healthy and growing. 
C) Unemployment and inflation are not related. 
D) People who are willing and able to work but have given up the search for a job are considered unemployed. 
E) Voluntary unemployment refers to a situation in which people who really do not want to work only pretend to look for jobs.

Question 5

Which of the following is most likely to reduce structural unemployment?

Accepted Answer

A) A reduction in wage rates 
B) Access to better information on local job openings 
C) Retraining workers in marketable skills 
D) Promotion of full employment through government stabilization policies 
E) Reducing the cost of job loss through enhanced unemployment benefits 
A) A reduction in wage rates 
B) Access to better information on local job openings 
C) Retraining workers in marketable skills 
D) Promotion of full employment through government stabilization policies 
E) Reducing the cost of job loss through enhanced unemployment benefits

Question 6

An increase in the interest rate will increase the demand for loanable funds.

Accepted Answer

A) True 
 B)False

Question 7

The real interest rate can be negative.

Accepted Answer

A) True 
 B)False

Question 8

Inflation can be caused:

Accepted Answer

A) only by increases in aggregate demand. 
B) only by increases in aggregate supply. 
C) only by decreases in aggregate supply. 
D) by increases in aggregate supply or decreases in aggregate demand. 
E) by increases in aggregate demand or decreases in aggregate supply. 
A) only by increases in aggregate demand. 
B) only by increases in aggregate supply. 
C) only by decreases in aggregate supply. 
D) by increases in aggregate supply or decreases in aggregate demand. 
E) by increases in aggregate demand or decreases in aggregate supply.

Question 9

Since 1980,_____ has experienced deflation.

Accepted Answer

A) the U.S. 
B) France 
C) Germany 
D) Japan 
E) Italy 
A) the U.S. 
B) France 
C) Germany 
D) Japan 
E) Italy

Question 10

If the inflation rate in an economy is higher than expected,which of the following groups in the society would be most likely to gain?

Accepted Answer

A) Borrowers 
B) Lenders 
C) Persons holding large amounts of money 
D) Persons on fixed incomes 
E) Workers under contract without a cost of living adjustment 
A) Borrowers 
B) Lenders 
C) Persons holding large amounts of money 
D) Persons on fixed incomes 
E) Workers under contract without a cost of living adjustment

Question 11

The inflation experienced in the United States during the late 1960s as a result of the spending on the Vietnam War is an example of:

Accepted Answer

A) hyperinflation. 
B) demand-pull inflation. 
C) disinflation. 
D) cost-push inflation. 
E) cyclical inflation. 
A) hyperinflation. 
B) demand-pull inflation. 
C) disinflation. 
D) cost-push inflation. 
E) cyclical inflation.

Question 12

If the expected inflation rate is 4 percent and the nominal interest rate is 9 percent,the expected real interest rate is _____.

Accepted Answer

A) 13 percent 
B) −5 percent 
C) 9 percent 
D) −13 percent 
E) 5 percent 
A) 13 percent 
B) −5 percent 
C) 9 percent 
D) −13 percent 
E) 5 percent

Question 13

Who among the following would not be considered officially unemployed?

Accepted Answer

A) Jones,who quit his job to look for a better job in another part of the country 
B) Jason,who got fired from his job when the government cut spending 
C) Bourne,who is looking for a job after being out of the labor force for five years 
D) Sophie,who retired early because she disliked her current job 
E) Annie,who dropped out of the labor force after a year of job search 
A) Jones,who quit his job to look for a better job in another part of the country 
B) Jason,who got fired from his job when the government cut spending 
C) Bourne,who is looking for a job after being out of the labor force for five years 
D) Sophie,who retired early because she disliked her current job 
E) Annie,who dropped out of the labor force after a year of job search

Question 14

Inmates from the county prison who are on work release are counted as part of the labor force.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following does not exist when an economy is operating at full employment?

Accepted Answer

A) An unemployment rate of 5 percent or 6 percent 
B) Seasonal unemployment 
C) Structural unemployment 
D) Cyclical unemployment 
E) Frictional unemployment 
A) An unemployment rate of 5 percent or 6 percent 
B) Seasonal unemployment 
C) Structural unemployment 
D) Cyclical unemployment 
E) Frictional unemployment

Question 16

"Discouraged workers" comprise the percentage of those in the:

Accepted Answer

A) labor force who are employed and are seeking employment. 
B) labor force who have chosen early retirement because they dislike their work. 
C) adult population who want to be employed but have given up the search for a job. 
D) labor force who are looking for a job but cannot find one. 
E) adult population who are in the labor force. 
A) labor force who are employed and are seeking employment. 
B) labor force who have chosen early retirement because they dislike their work. 
C) adult population who want to be employed but have given up the search for a job. 
D) labor force who are looking for a job but cannot find one. 
E) adult population who are in the labor force.

Question 17

The labor force consists of all adults who are currently employed.

Accepted Answer

A) True 
 B)False

Question 18

Anticipated inflation causes more problems in the economy than unanticipated inflation.

Accepted Answer

A) True 
 B)False

Question 19

Inflation is:

Accepted Answer

A) a reduction in everyone's standard of living. 
B) a rise in the real prices of all goods and services. 
C) a general and continuing rise in the money prices of goods and services. 
D) a continuing rise in everyone's standard of living. 
E) an increase in the value of money compared to the value of goods. 
A) a reduction in everyone's standard of living. 
B) a rise in the real prices of all goods and services. 
C) a general and continuing rise in the money prices of goods and services. 
D) a continuing rise in everyone's standard of living. 
E) an increase in the value of money compared to the value of goods.

Question 20

An individual with a Ph.D.in physics who can find employment only in a pizza parlor would be considered:

Accepted Answer

A) discouraged. 
B) underemployed. 
C) overemployed. 
D) voluntarily unemployed. 
E) long-term unemployed. 
A) discouraged. 
B) underemployed. 
C) overemployed. 
D) voluntarily unemployed. 
E) long-term unemployed.

Which of the following groups tends to have the highest unemployment rate in the United States?

If the CPI in the United States was 150 in 2003 and 160 in 2004,the inflation rate over the year is _____.

The nominal interest rate is equal to the real interest rate minus the anticipated inflation rate.

Which of the following statements is true of unemployment?

Which of the following is most likely to reduce structural unemployment?

An increase in the interest rate will increase the demand for loanable funds.

The real interest rate can be negative.

Inflation can be caused:

Since 1980,_____ has experienced deflation.

If the inflation rate in an economy is higher than expected,which of the following groups in the society would be most likely to gain?

The inflation experienced in the United States during the late 1960s as a result of the spending on the Vietnam War is an example of:

If the expected inflation rate is 4 percent and the nominal interest rate is 9 percent,the expected real interest rate is _____.

Who among the following would not be considered officially unemployed?

Inmates from the county prison who are on work release are counted as part of the labor force.

Which of the following does not exist when an economy is operating at full employment?

"Discouraged workers" comprise the percentage of those in the:

The labor force consists of all adults who are currently employed.

Anticipated inflation causes more problems in the economy than unanticipated inflation.

Inflation is:

An individual with a Ph.D.in physics who can find employment only in a pizza parlor would be considered:

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

Exam 7: Unemployment and Inflation

Which of the following groups tends to have the highest unemployment rate in the United States?

If the CPI in the United States was 150 in 2003 and 160 in 2004,the inflation rate over the year is _____.

The nominal interest rate is equal to the real interest rate minus the anticipated inflation rate.

Which of the following statements is true of unemployment?

Which of the following is most likely to reduce structural unemployment?

An increase in the interest rate will increase the demand for loanable funds.

The real interest rate can be negative.

Inflation can be caused:

Since 1980,_____ has experienced deflation.

If the inflation rate in an economy is higher than expected,which of the following groups in the society would be most likely to gain?

The inflation experienced in the United States during the late 1960s as a result of the spending on the Vietnam War is an example of:

If the expected inflation rate is 4 percent and the nominal interest rate is 9 percent,the expected real interest rate is _____.

Who among the following would not be considered officially unemployed?

Inmates from the county prison who are on work release are counted as part of the labor force.

Which of the following does not exist when an economy is operating at full employment?

"Discouraged workers" comprise the percentage of those in the:

The labor force consists of all adults who are currently employed.

Anticipated inflation causes more problems in the economy than unanticipated inflation.

Inflation is:

An individual with a Ph.D.in physics who can find employment only in a pizza parlor would be considered:

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