Question 1

In the United States, if an individual has stopped actively seeking work, he or she is considered to be unemployed.

Accepted Answer

A) True 
 B)False

Question 2

Jobless recoveries prolong unemployment above the nonaccelerating inflation rate of unemployment.

Accepted Answer

A) True 
 B)False

Question 3

The nonaccelerating inflation rate of unemployment does not change over time.

Accepted Answer

A) True 
 B)False

Question 4

Which is NOT a criticism of the official unemployment rate?

Accepted Answer

A)  Marginally attached workers are not counted as unemployed. 
B)  Underemployed workers are counted as employed. 
C)  It does not include people who want to work but stopped searching out of frustration. 
D)  It is not reported frequently enough to provide a good picture of the state of the economy. 
A)  Marginally attached workers are not counted as unemployed. 
B)  Underemployed workers are counted as employed. 
C)  It does not include people who want to work but stopped searching out of frustration. 
D)  It is not reported frequently enough to provide a good picture of the state of the economy.

Question 5

(Table) The associated table provides a hypothetical bundle of goods. If 2014 is the base year, the economy is experiencing _____ in 2017.

Accepted Answer

A)  inflation 
B)  disinflation 
C)  deflation 
D)  hyperinflation 
A)  inflation 
B)  disinflation 
C)  deflation 
D)  hyperinflation

Question 6

What is the GDP deflator, and how is it measured?

Accepted Answer

The GDP deflator is an index of the aver

Question 7

Which assumption is NOT a problem related to 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 8

Which person is considered to be unemployed?

Accepted Answer

A)  Ahmed, who is on vacation 
B)  Sarah, who is on strike 
C)  Tiffany, who is going for interviews, hoping to get her first job 
D)  Carmen, who works three days a week at her father's business but is not paid 
A)  Ahmed, who is on vacation 
B)  Sarah, who is on strike 
C)  Tiffany, who is going for interviews, hoping to get her first job 
D)  Carmen, who works three days a week at her father's business but is not paid

Question 9

Assume that Bob reads an article for class concerning the U.S. labor market that reports an increase in entrepreneurial activity. To verify this information, he could refer to the

Accepted Answer

A)  weekly jobs report. 
B)  household survey. 
C)  current employment statistics survey. 
D)  payroll survey. 
A)  weekly jobs report. 
B)  household survey. 
C)  current employment statistics survey. 
D)  payroll survey.

Question 10

What are the causes and consequences of hyperinflation?

Accepted Answer

Hyperinflation is typically caused by ex

Question 11

The main reason people were unemployed in the United States in 2018 was because they

Accepted Answer

A)  were new entrants into the labor force. 
B)  were reentrants into the labor force. 
C)  lost their job. 
D)  left their job. 
A)  were new entrants into the labor force. 
B)  were reentrants into the labor force. 
C)  lost their job. 
D)  left their job.

Question 12

_____ is a measure of the changes in the average prices received by domestic producers for their output.

Accepted Answer

A)  The consumer price index 
B)  The producer price index 
C)  Personal consumption expenditure 
D)  The GDP deflator 
A)  The consumer price index 
B)  The producer price index 
C)  Personal consumption expenditure 
D)  The GDP deflator

Question 13

The GDP deflator is the narrowest of the measures of inflation.

Accepted Answer

A) True 
 B)False

Question 14

(Table) The associated table provides a hypothetical bundle of goods. If 2014 is the base year, the value of nominal GDP in 2017 would be

Accepted Answer

A)  $500. 
B)  $565. 
C)  $651.75. 
D)  $709.75. 
A)  $500. 
B)  $565. 
C)  $651.75. 
D)  $709.75.

Question 15

Robert lost his job and now takes care of his children while his wife works. He would take a job similar to the one he lost if it were offered, but he is not actively seeking work. How is Robert categorized in the unemployment figures?

Accepted Answer

A)  Robert is unemployed. 
B)  Robert is employed because he is providing a useful service. 
C)  Robert is not part of the labor force. 
D)  Robert is underemployed. 
A)  Robert is unemployed. 
B)  Robert is employed because he is providing a useful service. 
C)  Robert is not part of the labor force. 
D)  Robert is underemployed.

Question 16

The existence of discouraged workers tends to cause the official unemployment rate to understate the actual rate.

Accepted Answer

A) True 
 B)False

Question 17

Discouraged workers are counted in the labor force.

Accepted Answer

A) True 
 B)False

Question 18

The twin perils of the modern macro economy are said to be

Accepted Answer

A)  government and the trade deficit. 
B)  unemployment and the trade surplus. 
C)  inflation and unemployment. 
D)  inflation and the trade deficit. 
A)  government and the trade deficit. 
B)  unemployment and the trade surplus. 
C)  inflation and unemployment. 
D)  inflation and the trade deficit.

Question 19

People are considered unemployed if they are

Accepted Answer

A)  unpaid family workers. 
B)  on strike. 
C)  on vacation. 
D)  are not working but are available for work and have been actively searching for a job
For the previous four weeks. 
A)  unpaid family workers. 
B)  on strike. 
C)  on vacation. 
D)  are not working but are available for work and have been actively searching for a job
For the previous four weeks.

Question 20

Full employment, or the natural rate of unemployment, is determined by institutional factors such as the presence or absence of employment agencies and their effectiveness.

Accepted Answer

A) True 
 B)False

In the United States, if an individual has stopped actively seeking work, he or she is considered to be unemployed.

Jobless recoveries prolong unemployment above the nonaccelerating inflation rate of unemployment.

The nonaccelerating inflation rate of unemployment does not change over time.

Which is NOT a criticism of the official unemployment rate?

(Table) The associated table provides a hypothetical bundle of goods. If 2014 is the base year, the economy is experiencing _____ in 2017.

What is the GDP deflator, and how is it measured?

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

Which person is considered to be unemployed?

Assume that Bob reads an article for class concerning the U.S. labor market that reports an increase in entrepreneurial activity. To verify this information, he could refer to the

What are the causes and consequences of hyperinflation?

The main reason people were unemployed in the United States in 2018 was because they

_____ is a measure of the changes in the average prices received by domestic producers for their output.

The GDP deflator is the narrowest of the measures of inflation.

(Table) The associated table provides a hypothetical bundle of goods. If 2014 is the base year, the value of nominal GDP in 2017 would be

Robert lost his job and now takes care of his children while his wife works. He would take a job similar to the one he lost if it were offered, but he is not actively seeking work. How is Robert categorized in the unemployment figures?

The existence of discouraged workers tends to cause the official unemployment rate to understate the actual rate.

Discouraged workers are counted in the labor force.

The twin perils of the modern macro economy are said to be

People are considered unemployed if they are

Full employment, or the natural rate of unemployment, is determined by institutional factors such as the presence or absence of employment agencies and their effectiveness.

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

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Exam 6: Measuring Inflation and Unemployment

In the United States, if an individual has stopped actively seeking work, he or she is considered to be unemployed.

Jobless recoveries prolong unemployment above the nonaccelerating inflation rate of unemployment.

The nonaccelerating inflation rate of unemployment does not change over time.

Which is NOT a criticism of the official unemployment rate?

(Table) The associated table provides a hypothetical bundle of goods. If 2014 is the base year, the economy is experiencing _____ in 2017.

What is the GDP deflator, and how is it measured?

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

Which person is considered to be unemployed?

Assume that Bob reads an article for class concerning the U.S. labor market that reports an increase in entrepreneurial activity. To verify this information, he could refer to the

What are the causes and consequences of hyperinflation?

The main reason people were unemployed in the United States in 2018 was because they

_____ is a measure of the changes in the average prices received by domestic producers for their output.

The GDP deflator is the narrowest of the measures of inflation.

(Table) The associated table provides a hypothetical bundle of goods. If 2014 is the base year, the value of nominal GDP in 2017 would be

Robert lost his job and now takes care of his children while his wife works. He would take a job similar to the one he lost if it were offered, but he is not actively seeking work. How is Robert categorized in the unemployment figures?

The existence of discouraged workers tends to cause the official unemployment rate to understate the actual rate.

Discouraged workers are counted in the labor force.

The twin perils of the modern macro economy are said to be

People are considered unemployed if they are

Full employment, or the natural rate of unemployment, is determined by institutional factors such as the presence or absence of employment agencies and their effectiveness.

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