Question 1

Unemployment caused by the fluctuation of the business cycle is called ________ unemployment.

Accepted Answer

A)  structural 
B)  recession-related 
C)  frictional 
D)  cyclical 
A)  structural 
B)  recession-related 
C)  frictional 
D)  cyclical

Question 2

Suppose that the price level was 100 in 2014, 110 in 2015, and 130 in 2016. Over these three years

Accepted Answer

A)  deflation occurred at an accelerating rate. 
B)  the inflation rate was positive but slowing. 
C)  prices were stable. 
D)  the inflation rate was positive and accelerating. 
A)  deflation occurred at an accelerating rate. 
B)  the inflation rate was positive but slowing. 
C)  prices were stable. 
D)  the inflation rate was positive and accelerating.

Question 3

ABC news in Australia reported that the average annual wage in 2008 was $13,308. To calculate the real wage rate in Australia, you would need to know

Accepted Answer

A)  Australia's inflation rate between 2007 and 2008. 
B)  Australia's price level in 2008. 
C)  the core inflation rate in Australia in 2008. 
D)  the exchange rate between the U.S. dollar and the Australian dollar. 
A)  Australia's inflation rate between 2007 and 2008. 
B)  Australia's price level in 2008. 
C)  the core inflation rate in Australia in 2008. 
D)  the exchange rate between the U.S. dollar and the Australian dollar.

Question 4

What is inflation and how is it measured using the Consumer Price Index?

Accepted Answer

The inflation rate is the percentage cha

Question 5

Explain the CPI bias and how it can distort private contracts and increase government outlays.

Accepted Answer

The CPI bias is the point that the CPI o

Question 6

During an economic expansion, real GDP ________ and unemployment ________.

Accepted Answer

A)  increases; increases 
B)  increases; decreases 
C)  decreases; increases 
D)  decreases; decreases 
A)  increases; increases 
B)  increases; decreases 
C)  decreases; increases 
D)  decreases; decreases

Question 7

How does the Current Population Survey determine if a person should be counted in the labor force?

Accepted Answer

To be in the labor force, a person must

Question 8

An individual who has stopped looking for a job because he is convinced that he cannot find a job is referred to as

Accepted Answer

A)  a contingent worker. 
B)  a productive worker. 
C)  a discouraged worker. 
D)  an unemployed worker. 
A)  a contingent worker. 
B)  a productive worker. 
C)  a discouraged worker. 
D)  an unemployed worker.

Question 9

If unemployment is at the natural rate, then there

Accepted Answer

A)  is no cyclical unemployment. 
B)  is no frictional unemployment. 
C)  will be cyclical and frictional unemployment but not structural unemployment. 
D)  will be only cyclical unemployment. 
A)  is no cyclical unemployment. 
B)  is no frictional unemployment. 
C)  will be cyclical and frictional unemployment but not structural unemployment. 
D)  will be only cyclical unemployment.

Question 10

If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed and 150 million employed, the unemployment rate is

Accepted Answer

A)  23.3 percent. 
B)  6.7 percent. 
C)  6.25 percent. 
D)  26.7 percent. 
A)  23.3 percent. 
B)  6.7 percent. 
C)  6.25 percent. 
D)  26.7 percent.

Question 11

-The above table shows answers given by people interviewed in the Current Population Survey. Which people are structurally unemployed?

Accepted Answer

A)  A, B, C, and D 
B)  A, B, and C 
C)  B and C. 
D)  A, B, and D 
A)  A, B, C, and D 
B)  A, B, and C 
C)  B and C. 
D)  A, B, and D

Question 12

Reflecting the state of the economy in 2008, the Bureau of Labor Statistics reported in October that over 1000 jobs were lost in the legal services sector. For example, one firm in Chicago stated that it had fired 54 lawyers in 2008. A representative from the firm stated that most had worked in its real estate division. www.nytimes.com, 11/11/2008
The lawyers that were fired are an example of ________ unemployment.

Accepted Answer

A)  frictional 
B)  structural 
C)  efficiency wage 
D)  cyclical 
A)  frictional 
B)  structural 
C)  efficiency wage 
D)  cyclical

Question 13

Explain the difference between frictional and structural unemployment.

Accepted Answer

Frictional unemployment is more short te

Question 14

Which of the following people would be considered unemployed by the Bureau of Labor Statistics?
I. Mrs. X retires from her job at the age of 55 and does not look for another job.
II. Mr. Y was laid off from his job as a welder, but expects to be rehired in 8 months.

Accepted Answer

A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II 
A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II

Question 15

For each of the following values of nominal GDP and real GDP, calculate the GDP price deflator.
a) Nominal GDP = $600; real GDP = $800.
b) Nominal GDP = $900; real GDP = $900.
c) Nominal GDP = $1,200; real GDP = $1,000

Accepted Answer

a) The GDP deflator equals ($6

Question 16

Define and give an example of how a spell of structural unemployment can begin.

Accepted Answer

Structural unemployment arises when chan

Question 17

Suppose that the total labor force is 100 individuals with 10 unemployed. The unemployment rate is ________. Now assume that 10 people drop out of the labor force and that 10 remain unemployed. The new unemployment rate is ________.

Accepted Answer

A)  9 percent; 10 percent 
B)  10 percent; 9 percent 
C)  10 percent; 11 percent 
D)  11 percent; 10 percent 
A)  9 percent; 10 percent 
B)  10 percent; 9 percent 
C)  10 percent; 11 percent 
D)  11 percent; 10 percent

Question 18

-The tables above give the purchases of a typical consumer in a country comprised of one large city. These consumers purchase only restaurant meals and parking. The year 2015 is the reference base period.
a) Find the total cost of the CPI basket for 2015 and 2016.
b) What is the CPI in 2012 and in 2016?
c) What is the inflation rate between 2015 and 2016?

Accepted Answer

a) The total cost of the CPI basket in 2

Question 19

-In the above table, the inflation rate between 2012 and 2013 is approximately

Accepted Answer

A)  0.9 percent. 
B)  1 percent. 
C)  10 percent. 
D)  100 percent. 
A)  0.9 percent. 
B)  1 percent. 
C)  10 percent. 
D)  100 percent.

Question 20

Who of the following is counted as unemployed?

Accepted Answer

A)  Rene, a retired chemist 
B)  Homer, a full-time student at a vocational school 
C)  Kim, a worker on strike from her company for a week 
D)  Glenn, a student who just graduated from college last week and is currently looking for a job 
A)  Rene, a retired chemist 
B)  Homer, a full-time student at a vocational school 
C)  Kim, a worker on strike from her company for a week 
D)  Glenn, a student who just graduated from college last week and is currently looking for a job

Unemployment caused by the fluctuation of the business cycle is called ________ unemployment.

Suppose that the price level was 100 in 2014, 110 in 2015, and 130 in 2016. Over these three years

ABC news in Australia reported that the average annual wage in 2008 was $13,308. To calculate the real wage rate in Australia, you would need to know

What is inflation and how is it measured using the Consumer Price Index?

Explain the CPI bias and how it can distort private contracts and increase government outlays.

During an economic expansion, real GDP and unemployment .

How does the Current Population Survey determine if a person should be counted in the labor force?

An individual who has stopped looking for a job because he is convinced that he cannot find a job is referred to as

If unemployment is at the natural rate, then there

If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed and 150 million employed, the unemployment rate is

-The above table shows answers given by people interviewed in the Current Population Survey. Which people are structurally unemployed?

Explain the difference between frictional and structural unemployment.

Which of the following people would be considered unemployed by the Bureau of Labor Statistics? I. Mrs. X retires from her job at the age of 55 and does not look for another job. II. Mr. Y was laid off from his job as a welder, but expects to be rehired in 8 months.

For each of the following values of nominal GDP and real GDP, calculate the GDP price deflator. a) Nominal GDP = $600; real GDP = $800. b) Nominal GDP = $900; real GDP = $900. c) Nominal GDP = $1,200; real GDP = $1,000

Define and give an example of how a spell of structural unemployment can begin.

Suppose that the total labor force is 100 individuals with 10 unemployed. The unemployment rate is . Now assume that 10 people drop out of the labor force and that 10 remain unemployed. The new unemployment rate is .

-In the above table, the inflation rate between 2012 and 2013 is approximately

Who of the following is counted as unemployed?

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 5: Monitoring Jobs and Inflation

Unemployment caused by the fluctuation of the business cycle is called ________ unemployment.

Suppose that the price level was 100 in 2014, 110 in 2015, and 130 in 2016. Over these three years

ABC news in Australia reported that the average annual wage in 2008 was $13,308. To calculate the real wage rate in Australia, you would need to know

What is inflation and how is it measured using the Consumer Price Index?

Explain the CPI bias and how it can distort private contracts and increase government outlays.

During an economic expansion, real GDP ________ and unemployment ________.

How does the Current Population Survey determine if a person should be counted in the labor force?

An individual who has stopped looking for a job because he is convinced that he cannot find a job is referred to as

If unemployment is at the natural rate, then there

If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed and 150 million employed, the unemployment rate is

-The above table shows answers given by people interviewed in the Current Population Survey. Which people are structurally unemployed?

Explain the difference between frictional and structural unemployment.

Which of the following people would be considered unemployed by the Bureau of Labor Statistics? I. Mrs. X retires from her job at the age of 55 and does not look for another job. II. Mr. Y was laid off from his job as a welder, but expects to be rehired in 8 months.

For each of the following values of nominal GDP and real GDP, calculate the GDP price deflator. a) Nominal GDP = $600; real GDP = $800. b) Nominal GDP = $900; real GDP = $900. c) Nominal GDP = $1,200; real GDP = $1,000

Define and give an example of how a spell of structural unemployment can begin.

Suppose that the total labor force is 100 individuals with 10 unemployed. The unemployment rate is ________. Now assume that 10 people drop out of the labor force and that 10 remain unemployed. The new unemployment rate is ________.

-In the above table, the inflation rate between 2012 and 2013 is approximately

Who of the following is counted as unemployed?

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

During an economic expansion, real GDP and unemployment .

Suppose that the total labor force is 100 individuals with 10 unemployed. The unemployment rate is . Now assume that 10 people drop out of the labor force and that 10 remain unemployed. The new unemployment rate is .