Question 1

During periods of poor economic performance, real GDP

Accepted Answer

A)  declines and unemployment rises. 
B)  declines and unemployment declines. 
C)  declines but unemployment typically does not change. 
D)  is unchanged but unemployment rises sharply. 
A)  declines and unemployment rises. 
B)  declines and unemployment declines. 
C)  declines but unemployment typically does not change. 
D)  is unchanged but unemployment rises sharply. A

Question 2

________ unemployment is most closely associated with periods of falling GDP.

Accepted Answer

A)  Structural 
B)  Cyclical 
C)  Frictional 
D)  Voluntary 
A)  Structural 
B)  Cyclical 
C)  Frictional 
D)  Voluntary B

Question 3

Cyclical unemployment increases during recessions.

Accepted Answer

A) True 
 B)False  True

Question 4

The costs associated with recalculating prices and printing new price lists when there is inflation are known as

Accepted Answer

A)  shoe leather costs. 
B)  menu costs. 
C)  chain-index costs. 
D)  diminishing costs. 
A)  shoe leather costs. 
B)  menu costs. 
C)  chain-index costs. 
D)  diminishing costs.

Question 5

Table 6.2
The following table lists the basket of goods in the
Consumer Price Index for the nation of Astro (Assume 2010 is the base year.)
  
-Using the information in Table 6.2, the Astro Consumer Price Index for 2012 is

Accepted Answer

A)  87. 
B)  104. 
C)  131. 
D)  298. 
A)  87. 
B)  104. 
C)  131. 
D)  298.

Question 6

If Sam does not have a job and is not looking for work, he is considered

Accepted Answer

A)  unemployed and in the labor force. 
B)  unemployed and not in the labor force. 
C)  not in the labor force. 
D)  unemployed. 
A)  unemployed and in the labor force. 
B)  unemployed and not in the labor force. 
C)  not in the labor force. 
D)  unemployed.

Question 7

What is the threshold age for individuals to be considered as being in the "labor force" for statistical purposes?

Accepted Answer

A)  16 
B)  18 
C)  21 
D)  Over 21 
A)  16 
B)  18 
C)  21 
D)  Over 21

Question 8

In June 2012, the U.S. labor force consisted of 142,415,000 employed and 12,749,000 unemployed. The U.S. unemployment rate for June 2012 was about

Accepted Answer

A)  7.4 percent. 
B)  8.2 percent. 
C)  9.0 percent. 
D)  11.2 percent. 
A)  7.4 percent. 
B)  8.2 percent. 
C)  9.0 percent. 
D)  11.2 percent.

Question 9

Frictional unemployment is unemployment reflecting a mismatch of skills and jobs.

Accepted Answer

A) True 
 B)False

Question 10

Recall the Application about declining U.S. labor force participation since 1999 to answer the following question(s).
-According to this Application, one explanation for the decline in the U.S. labor force participation rate since 1999 is

Accepted Answer

A)  the decline in the overall population. 
B)  the increasing number of retiring baby boomers. 
C)  the increase in immigration to the United States. 
D)  the increase in outsourcing by U.S. companies. 
A)  the decline in the overall population. 
B)  the increasing number of retiring baby boomers. 
C)  the increase in immigration to the United States. 
D)  the increase in outsourcing by U.S. companies.

Question 11

As compared to the estimates of the natural rate of unemployment for the United States, those for Europe are

Accepted Answer

A)  the same. 
B)  higher. 
C)  lower. 
D)  higher and more variable. 
A)  the same. 
B)  higher. 
C)  lower. 
D)  higher and more variable.

Question 12

Economists say that the economy is at "full employment" when the

Accepted Answer

A)  structural unemployment rate is zero. 
B)  total unemployment rate is zero. 
C)  frictional unemployment rate is zero. 
D)  cyclical unemployment rate is zero. 
A)  structural unemployment rate is zero. 
B)  total unemployment rate is zero. 
C)  frictional unemployment rate is zero. 
D)  cyclical unemployment rate is zero.

Question 13

The value of a dollar

Accepted Answer

A)  is its purchasing power. 
B)  remains constant over time. 
C)  is its face value. 
D)  is set by the government. 
A)  is its purchasing power. 
B)  remains constant over time. 
C)  is its face value. 
D)  is set by the government.

Question 14

What is structural unemployment?

Accepted Answer

Structural unemployment is une

Question 15

Suppose that in 2011 the chain-weighted price index for GDP in Estonia is 220 and the chain-weighted price index in Lithuania is 160. In 2012 the price index in Estonia is 242 and the price index in Lithuania is 180. You could conclude that

Accepted Answer

A)  Estonia is a more expensive place to live than Lithuania. 
B)  Lithuania is a more expensive place to live than Estonia. 
C)  Estonia's rate of inflation is higher than Lithuania's. 
D)  Lithuania's rate of inflation is higher than Estonia's. 
A)  Estonia is a more expensive place to live than Lithuania. 
B)  Lithuania is a more expensive place to live than Estonia. 
C)  Estonia's rate of inflation is higher than Lithuania's. 
D)  Lithuania's rate of inflation is higher than Estonia's.

Question 16

The economy needs some unemployment to operate efficiently, because without it

Accepted Answer

A)  firms will find it difficult to recruit workers, leading to increased wages and prices. 
B)  firms will find it difficult to recruit workers, leading to reduced wages and prices. 
C)  workers will find it difficult to find a job, leading to increased wages and prices. 
D)  workers will find it difficult to find a job, leading to reduced wages and prices. 
A)  firms will find it difficult to recruit workers, leading to increased wages and prices. 
B)  firms will find it difficult to recruit workers, leading to reduced wages and prices. 
C)  workers will find it difficult to find a job, leading to increased wages and prices. 
D)  workers will find it difficult to find a job, leading to reduced wages and prices.

Question 17

Which specific government agency monitors unemployment?

Accepted Answer

A)  Commerce Department 
B)  Bureau of Labor Statistics 
C)  Executive Branch 
D)  State Department 
A)  Commerce Department 
B)  Bureau of Labor Statistics 
C)  Executive Branch 
D)  State Department

Question 18

What happens to your purchasing power if inflation is less than you anticipated?

Accepted Answer

A)  It decreases. 
B)  It increases. 
C)  It devalues your net worth. 
D)  It won't change much. 
A)  It decreases. 
B)  It increases. 
C)  It devalues your net worth. 
D)  It won't change much.

Question 19

Suppose that a price index in Paraguay was 131 in 2011 and 152 in 2012. The inflation rate between those two years was approximately

Accepted Answer

A)  10.5 percent. 
B)  11.6 percent. 
C)  16 percent. 
D)  21 percent. 
A)  10.5 percent. 
B)  11.6 percent. 
C)  16 percent. 
D)  21 percent.

Question 20

In the United States today, economists estimate that the natural rate of unemployment is between ________ and ________ percent.

Accepted Answer

A)  3; 5.5 
B)  3; 4 
C)  5; 6.5 
D)  6.5; 7.5 
A)  3; 5.5 
B)  3; 4 
C)  5; 6.5 
D)  6.5; 7.5

During periods of poor economic performance, real GDP

________ unemployment is most closely associated with periods of falling GDP.

Cyclical unemployment increases during recessions.

The costs associated with recalculating prices and printing new price lists when there is inflation are known as

Table 6.2 The following table lists the basket of goods in the Consumer Price Index for the nation of Astro (Assume 2010 is the base year.) -Using the information in Table 6.2, the Astro Consumer Price Index for 2012 is

If Sam does not have a job and is not looking for work, he is considered

What is the threshold age for individuals to be considered as being in the "labor force" for statistical purposes?

In June 2012, the U.S. labor force consisted of 142,415,000 employed and 12,749,000 unemployed. The U.S. unemployment rate for June 2012 was about

Frictional unemployment is unemployment reflecting a mismatch of skills and jobs.

Recall the Application about declining U.S. labor force participation since 1999 to answer the following question(s). -According to this Application, one explanation for the decline in the U.S. labor force participation rate since 1999 is

As compared to the estimates of the natural rate of unemployment for the United States, those for Europe are

Economists say that the economy is at "full employment" when the

The value of a dollar

What is structural unemployment?

Suppose that in 2011 the chain-weighted price index for GDP in Estonia is 220 and the chain-weighted price index in Lithuania is 160. In 2012 the price index in Estonia is 242 and the price index in Lithuania is 180. You could conclude that

The economy needs some unemployment to operate efficiently, because without it

Which specific government agency monitors unemployment?

What happens to your purchasing power if inflation is less than you anticipated?

Suppose that a price index in Paraguay was 131 in 2011 and 152 in 2012. The inflation rate between those two years was approximately

In the United States today, economists estimate that the natural rate of unemployment is between and percent.

Introduction: What Is Economics?

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nation's Production and Income

The Economy at Full Employment

Why Do Economies Grow?

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters

Exam 6:Unemployment and Inflation

During periods of poor economic performance, real GDP

________ unemployment is most closely associated with periods of falling GDP.

Cyclical unemployment increases during recessions.

The costs associated with recalculating prices and printing new price lists when there is inflation are known as

Table 6.2 The following table lists the basket of goods in the Consumer Price Index for the nation of Astro (Assume 2010 is the base year.) -Using the information in Table 6.2, the Astro Consumer Price Index for 2012 is

If Sam does not have a job and is not looking for work, he is considered

What is the threshold age for individuals to be considered as being in the "labor force" for statistical purposes?

In June 2012, the U.S. labor force consisted of 142,415,000 employed and 12,749,000 unemployed. The U.S. unemployment rate for June 2012 was about

Frictional unemployment is unemployment reflecting a mismatch of skills and jobs.

Recall the Application about declining U.S. labor force participation since 1999 to answer the following question(s). -According to this Application, one explanation for the decline in the U.S. labor force participation rate since 1999 is

As compared to the estimates of the natural rate of unemployment for the United States, those for Europe are

Economists say that the economy is at "full employment" when the

The value of a dollar

What is structural unemployment?

Suppose that in 2011 the chain-weighted price index for GDP in Estonia is 220 and the chain-weighted price index in Lithuania is 160. In 2012 the price index in Estonia is 242 and the price index in Lithuania is 180. You could conclude that

The economy needs some unemployment to operate efficiently, because without it

Which specific government agency monitors unemployment?

What happens to your purchasing power if inflation is less than you anticipated?

Suppose that a price index in Paraguay was 131 in 2011 and 152 in 2012. The inflation rate between those two years was approximately

In the United States today, economists estimate that the natural rate of unemployment is between ________ and ________ percent.

Introduction: What Is Economics?

The Key Principles of Economics

Exchange and Markets

Demand, Supply, and Market Equilibrium

Measuring a Nation's Production and Income

The Economy at Full Employment

Why Do Economies Grow?

Aggregate Demand and Aggregate Supply

Fiscal Policy

The Income-Expenditure Model

Investment and Financial Markets

Money and the Banking System

The Federal Reserve and Monetary Policy

Modern Macroeconomics: From the Short Run to the Long Run

The Dynamics of Inflation and Unemployment

Macroeconomic Policy Debates

International Trade and Public Policy

The World of International Finance

Filters

In the United States today, economists estimate that the natural rate of unemployment is between and percent.