Question 1

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

Question 2

An increase 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) decrease the quantity of loanable funds supplied. 
D) decrease the quantity of loanable funds demanded. 
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) decrease the quantity of loanable funds supplied. 
D) decrease the quantity of loanable funds demanded. 
E) shift the supply of loanable funds curve to the right.

Question 3

The consumer price index measures:

Accepted Answer

A) the cost of all goods and services produced in the U.S.economy. 
B) the average change over time in the selling prices received by domestic producers for their output. 
C) the cost of a fixed market basket of consumer goods and services produced in the U.S.economy. 
D) the ratio of an economy's nominal GDP to its real GDP. 
E) the income distribution of an economy. 
A) the cost of all goods and services produced in the U.S.economy. 
B) the average change over time in the selling prices received by domestic producers for their output. 
C) the cost of a fixed market basket of consumer goods and services produced in the U.S.economy. 
D) the ratio of an economy's nominal GDP to its real GDP. 
E) the income distribution of an economy.

Question 4

The unemployment rate will decrease whenever there is a(n)_____.

Accepted Answer

A) increase in the number of persons classified as unemployed 
B) decrease in the number of unemployed persons relative to the size of the labor force 
C) decrease in the size of the population and no change in the number of persons classified as employed 
D) reduction in the size of the labor force 
E) decrease in the number of unemployed persons and no change the population 
A) increase in the number of persons classified as unemployed 
B) decrease in the number of unemployed persons relative to the size of the labor force 
C) decrease in the size of the population and no change in the number of persons classified as employed 
D) reduction in the size of the labor force 
E) decrease in the number of unemployed persons and no change the population

Question 5

An increase in unemployment benefits is likely to:

Accepted Answer

A) reduce a person's incentive to look for work. 
B) reduce the opportunity cost of remaining employed. 
C) provide a better safety net for employed families. 
D) decrease the tax imposed on consumers. 
E) increase the need to accept the first job available after becoming unemployed. 
A) reduce a person's incentive to look for work. 
B) reduce the opportunity cost of remaining employed. 
C) provide a better safety net for employed families. 
D) decrease the tax imposed on consumers. 
E) increase the need to accept the first job available after becoming unemployed.

Question 6

Which of the following periods was not characterized by inflation in the U.S.economic history?

Accepted Answer

A) 1917-1920 
B) 1929-1933 
C) 1947 
D) 1978-1980 
E) 1980-1989 
A) 1917-1920 
B) 1929-1933 
C) 1947 
D) 1978-1980 
E) 1980-1989

Question 7

If the aggregate supply curve shifts leftward,then _____.

Accepted Answer

A) the price level increases and output increases 
B) the resulting increase in the price level is usually called cost-push inflation 
C) the resulting increase in the price level is usually called demand-pull inflation 
D) the price level increases as long as the aggregate demand curve shifts rightward 
E) the price level decreases and output increases 
A) the price level increases and output increases 
B) the resulting increase in the price level is usually called cost-push inflation 
C) the resulting increase in the price level is usually called demand-pull inflation 
D) the price level increases as long as the aggregate demand curve shifts rightward 
E) the price level decreases and output increases

Question 8

If top government officials claim that more people are working now than ever before,then which of the following is true?

Accepted Answer

A) The unemployment rate is lower now than ever before. 
B) The number of people unemployed is lower now than ever before. 
C) The employment rate is higher now than ever before. 
D) The number of people in the labor force is higher now than ever before. 
E) The number of people employed is higher now than ever before. 
A) The unemployment rate is lower now than ever before. 
B) The number of people unemployed is lower now than ever before. 
C) The employment rate is higher now than ever before. 
D) The number of people in the labor force is higher now than ever before. 
E) The number of people employed is higher now than ever before.

Question 9

Unemployment arising from a mismatch of skills is called:

Accepted Answer

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

Question 10

If two parties to a loan contract agree that the lender should earn an 8 percent increase in purchasing power as a result of a loan and if the inflation rate is 5 percent,the nominal interest rate is _____.

Accepted Answer

A) 13 percent 
B) 8 percent 
C) 5 percent 
D) 3 percent 
E) 1 percent 
A) 13 percent 
B) 8 percent 
C) 5 percent 
D) 3 percent 
E) 1 percent

Question 11

One of the most widely reported measures of inflation is the:

Accepted Answer

A) consumer price index. 
B) producer price index. 
C) GDP deflator. 
D) Gini coefficient. 
E) real interest rate. 
A) consumer price index. 
B) producer price index. 
C) GDP deflator. 
D) Gini coefficient. 
E) real interest rate.

Question 12

The higher the anticipated inflation rate,_____.

Accepted Answer

A) the more workers will ask for in wages and the more firms will agree to pay 
B) the more workers will ask for in wages and the less firms will agree to pay 
C) the less workers will ask for in wages and the less firms will agree to pay 
D) the higher the real wage increases offered by firms 
E) the higher the real wage increases asked for by workers 
A) the more workers will ask for in wages and the more firms will agree to pay 
B) the more workers will ask for in wages and the less firms will agree to pay 
C) the less workers will ask for in wages and the less firms will agree to pay 
D) the higher the real wage increases offered by firms 
E) the higher the real wage increases asked for by workers

Question 13

The problems of inflation are caused primarily by:

Accepted Answer

A) greed on the part of sellers. 
B) uncertainty about inflation. 
C) too much incentive to lend money. 
D) greed on the part of union leaders. 
E) governments' actions to reduce the effects of inflation. 
A) greed on the part of sellers. 
B) uncertainty about inflation. 
C) too much incentive to lend money. 
D) greed on the part of union leaders. 
E) governments' actions to reduce the effects of inflation.

Question 14

Which of the following is true about U.S.history prior to the 1950s?

Accepted Answer

A) The inflation rate remained constant during this period. 
B) Cost-push inflation led to depressions,which were followed by slowly-rising price levels. 
C) The price level remained constant during this period. 
D) Major wars resulted in high inflation rates,after which the inflation rate tapered off. 
E) Major wars resulted in high inflation rates that were usually followed by deflation. 
A) The inflation rate remained constant during this period. 
B) Cost-push inflation led to depressions,which were followed by slowly-rising price levels. 
C) The price level remained constant during this period. 
D) Major wars resulted in high inflation rates,after which the inflation rate tapered off. 
E) Major wars resulted in high inflation rates that were usually followed by deflation.

Question 15

Which of the following people would be counted among the unemployed?

Accepted Answer

A) A new college graduate selling newspaper advertisements part time while looking for other work 
B) A new college graduate selling newspaper advertisements full time while looking for other work 
C) A new college graduate selling newspaper advertisements part time and not looking for other work 
D) A new college graduate who gets tired of selling newspaper advertisements and takes off on a motorcycle trip to Alaska 
E) A new college graduate not qualified for any of the jobs available in his small town 
A) A new college graduate selling newspaper advertisements part time while looking for other work 
B) A new college graduate selling newspaper advertisements full time while looking for other work 
C) A new college graduate selling newspaper advertisements part time and not looking for other work 
D) A new college graduate who gets tired of selling newspaper advertisements and takes off on a motorcycle trip to Alaska 
E) A new college graduate not qualified for any of the jobs available in his small town

Question 16

Which of the following people would be counted in the labor force?

Accepted Answer

A) Chou,who lost his job and last looked for work three months ago 
B) Stephanie,who holds a Ph.D.in history but can only find part-time employment at a fast food restaurant 
C) Jordan,who would like to work as a stockbroker but is a stay-at-home father 
D) Steffan,who is a patient in a mental hospital 
E) Monique,age 90,who is enjoying her retirement in Montana 
A) Chou,who lost his job and last looked for work three months ago 
B) Stephanie,who holds a Ph.D.in history but can only find part-time employment at a fast food restaurant 
C) Jordan,who would like to work as a stockbroker but is a stay-at-home father 
D) Steffan,who is a patient in a mental hospital 
E) Monique,age 90,who is enjoying her retirement in Montana

Question 17

Ginger quits her job as personal secretary to the Vice President of HR Technologies because she cannot handle the stress.It takes her three weeks to find a job as a receptionist at Mariam Hotels and Resorts.Over these three weeks,she would be considered frictionally unemployed.

Accepted Answer

A) True 
 B)False

Question 18

Which type of unemployment is likely to decrease the most during an economy's boom?

Accepted Answer

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

Question 19

The following image shows the aggregate demand and aggregate supply curves of an economy.In the graph below,the rise in the price levels from P1 to P2 is a result of:

Accepted Answer

A) cost-pull inflation. 
B) cost-push inflation. 
C) demand-push inflation. 
D) demand-pull inflation. 
E) induced inflation. 
A) cost-pull inflation. 
B) cost-push inflation. 
C) demand-push inflation. 
D) demand-pull inflation. 
E) induced inflation.

Question 20

Which type of unemployment is most likely to help an economy become more efficient?

Accepted Answer

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

An increase in the interest rate,other things constant,will:

An increase in the interest rate,other things constant,will:

The consumer price index measures:

The unemployment rate will decrease whenever there is a(n)_____.

An increase in unemployment benefits is likely to:

Which of the following periods was not characterized by inflation in the U.S.economic history?

If the aggregate supply curve shifts leftward,then _____.

If top government officials claim that more people are working now than ever before,then which of the following is true?

Unemployment arising from a mismatch of skills is called:

If two parties to a loan contract agree that the lender should earn an 8 percent increase in purchasing power as a result of a loan and if the inflation rate is 5 percent,the nominal interest rate is _____.

One of the most widely reported measures of inflation is the:

The higher the anticipated inflation rate,_____.

The problems of inflation are caused primarily by:

Which of the following is true about U.S.history prior to the 1950s?

Which of the following people would be counted among the unemployed?

Which of the following people would be counted in the labor force?

Ginger quits her job as personal secretary to the Vice President of HR Technologies because she cannot handle the stress.It takes her three weeks to find a job as a receptionist at Mariam Hotels and Resorts.Over these three weeks,she would be considered frictionally unemployed.

Which type of unemployment is likely to decrease the most during an economy's boom?

The following image shows the aggregate demand and aggregate supply curves of an economy.In the graph below,the rise in the price levels from P₁ to P₂ is a result of:

Which type of unemployment is most likely to help an economy become more efficient?

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

An increase in the interest rate,other things constant,will:

An increase in the interest rate,other things constant,will:

The consumer price index measures:

The unemployment rate will decrease whenever there is a(n)_____.

An increase in unemployment benefits is likely to:

Which of the following periods was not characterized by inflation in the U.S.economic history?

If the aggregate supply curve shifts leftward,then _____.

If top government officials claim that more people are working now than ever before,then which of the following is true?

Unemployment arising from a mismatch of skills is called:

If two parties to a loan contract agree that the lender should earn an 8 percent increase in purchasing power as a result of a loan and if the inflation rate is 5 percent,the nominal interest rate is _____.

One of the most widely reported measures of inflation is the:

The higher the anticipated inflation rate,_____.

The problems of inflation are caused primarily by:

Which of the following is true about U.S.history prior to the 1950s?

Which of the following people would be counted among the unemployed?

Which of the following people would be counted in the labor force?

Ginger quits her job as personal secretary to the Vice President of HR Technologies because she cannot handle the stress.It takes her three weeks to find a job as a receptionist at Mariam Hotels and Resorts.Over these three weeks,she would be considered frictionally unemployed.

Which type of unemployment is likely to decrease the most during an economy's boom?

The following image shows the aggregate demand and aggregate supply curves of an economy.In the graph below,the rise in the price levels from P1 to P2 is a result of:

Which type of unemployment is most likely to help an economy become more efficient?

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

The following image shows the aggregate demand and aggregate supply curves of an economy.In the graph below,the rise in the price levels from P₁ to P₂ is a result of: