Question 1

The capital utilization rate is:

Accepted Answer

A) the rate capital wears out in a particular period. 
B) the depreciation rate. 
C) the percentage of capital used in production. 
D) all of the above. 
A) the rate capital wears out in a particular period. 
B) the depreciation rate. 
C) the percentage of capital used in production. 
D) all of the above. C

Question 2

When the capital utilization rate,   , increases then:

Accepted Answer

A) GDP decreases. 
B) machines are in use fewer hours per period. 
C) (hours per period)•(number of machines) increases. 
D) all of the above. 
A) GDP decreases. 
B) machines are in use fewer hours per period. 
C) (hours per period)•(number of machines) increases. 
D) all of the above. C

Question 3

Job separations can be due to:

Accepted Answer

A) an adverse shock to the firm's production function. 
B) the job being temporary from the start like a seasonal job. 
C) a change in a worker's circumstances such as changing locations. 
D) all of the above. 
A) an adverse shock to the firm's production function. 
B) the job being temporary from the start like a seasonal job. 
C) a change in a worker's circumstances such as changing locations. 
D) all of the above. D

Question 4

When the capital utilization rate,   , increases then:

Accepted Answer

A) GDP increases. 
B) machines are in use fewer hours per period. 
C) (hour per period)•(number of machines) decreases. 
D) all of the above. 
A) GDP increases. 
B) machines are in use fewer hours per period. 
C) (hour per period)•(number of machines) decreases. 
D) all of the above.

Question 5

The Eurozone data from 1999.1 to 2013.4 shows the capital utilization rate,   , is:

Accepted Answer

A) procyclical as the model predicts. 
B) countercyclical as the model predicts. 
C) procyclical the opposite the model predicts. 
D) countercyclical the opposite as the model predicts. 
A) procyclical as the model predicts. 
B) countercyclical as the model predicts. 
C) procyclical the opposite the model predicts. 
D) countercyclical the opposite as the model predicts.

Question 6

How does the capital utilization rate affect the depreciation rate and why?

Accepted Answer

If capital is used more machin

Question 7

The model predicts that with a positive shock to technology the capital utilization rate,   , will

Accepted Answer

A) fall as GDP falls. 
B) fall as GDP rises. 
C) rise as GDP rises. 
D) rise as GDP falls. 
A) fall as GDP falls. 
B) fall as GDP rises. 
C) rise as GDP rises. 
D) rise as GDP falls.

Question 8

Discouraged workers are:

Accepted Answer

A) those that are unemployed. 
B) those that are underemployed. 
C) those who have dropped out of the labour force. 
D) those who are under paid. 
A) those that are unemployed. 
B) those that are underemployed. 
C) those who have dropped out of the labour force. 
D) those who are under paid.

Question 9

Unemployment can exist in a market clearing model, if:

Accepted Answer

A) all workers are identical. 
B) it takes some search time for workers to find jobs. 
C) the labour supply curve is upward sloping. 
D) all of the above. 
A) all workers are identical. 
B) it takes some search time for workers to find jobs. 
C) the labour supply curve is upward sloping. 
D) all of the above.

Question 10

When the capital utilization rate,   , is added to the model the interest rate becomes countercyclical.

Accepted Answer

A) True 
 B)False

Question 11

An increase in unemployment insurance payments decreases effective real income while unemployed.

Accepted Answer

A) True 
 B)False

Question 12

The job-finding rate is:

Accepted Answer

A) the number of hires per month divided by the number unemployed. 
B) the number of hires per month divided by the number employed. 
C) the number of hires per month divided by the unemployment rate. 
D) the number of hires per month divided by the employment rate. 
A) the number of hires per month divided by the number unemployed. 
B) the number of hires per month divided by the number employed. 
C) the number of hires per month divided by the unemployment rate. 
D) the number of hires per month divided by the employment rate.

Question 13

One minus the unemployment rate, 1 - u, is:

Accepted Answer

A) the vacancy rate. 
B) the labour force. 
C) the employment rate. 
D) the level of employment. 
A) the vacancy rate. 
B) the labour force. 
C) the employment rate. 
D) the level of employment.

Question 14

We expect that an increase in the effective real income while unemployed   ,

Accepted Answer

A) will reduce the job-finding rate. 
B) will increase the job-finding rate. 
C) increase real wage offers. 
D) decrease real wage offers. 
A) will reduce the job-finding rate. 
B) will increase the job-finding rate. 
C) increase real wage offers. 
D) decrease real wage offers.

Question 15

Higher capital utilization rates may raise user costs of capital because higher utilization rates may imply:

Accepted Answer

A) operating at inconvenient times. 
B) off-peak utility prices. 
C) less highway congestion. 
D) all of the above. 
A) operating at inconvenient times. 
B) off-peak utility prices. 
C) less highway congestion. 
D) all of the above.

Question 16

In Eurozone data vacancies from 2009 to 2015 as measure by the help-wanted index are:

Accepted Answer

A) procyclical as the model predicts. 
B) countercyclical as the model predicts. 
C) procyclical the opposite the model predicts. 
D) countercyclical the opposite the model predicts. 
A) procyclical as the model predicts. 
B) countercyclical as the model predicts. 
C) procyclical the opposite the model predicts. 
D) countercyclical the opposite the model predicts.

Question 17

How does this chapter model define the natural rate of unemployment and what does the natural rate of unemployment depend on.

Accepted Answer

The natural rate of unemployment is the

Question 18

If the job separation rate is 0.03 and the job finding rate is 0.7, then the natural rate of unemployment is:

Accepted Answer

A) 4.2% 
B) 4.1% 
C) 23.3% 
D) none of the above. 
A) 4.2% 
B) 4.1% 
C) 23.3% 
D) none of the above.

Question 19

The Eurozone data from 2010 to 2015 shows that the job separation rate is:

Accepted Answer

A) acyclical. 
B) countercyclical. 
C) procyclical. 
D) exogenous. 
A) acyclical. 
B) countercyclical. 
C) procyclical. 
D) exogenous.

Question 20

The model predicts the capital utilization rate,   , is:

Accepted Answer

A) acyclical. 
B) procyclical. 
C) countercyclical. 
D) exogenous. 
A) acyclical. 
B) procyclical. 
C) countercyclical. 
D) exogenous.

The capital utilization rate is:

When the capital utilization rate, , increases then:

Job separations can be due to:

When the capital utilization rate, , increases then:

The Eurozone data from 1999.1 to 2013.4 shows the capital utilization rate, , is:

How does the capital utilization rate affect the depreciation rate and why?

The model predicts that with a positive shock to technology the capital utilization rate, , will

Discouraged workers are:

Unemployment can exist in a market clearing model, if:

When the capital utilization rate, , is added to the model the interest rate becomes countercyclical.

An increase in unemployment insurance payments decreases effective real income while unemployed.

The job-finding rate is:

One minus the unemployment rate, 1 - u, is:

We expect that an increase in the effective real income while unemployed ,

Higher capital utilization rates may raise user costs of capital because higher utilization rates may imply:

In Eurozone data vacancies from 2009 to 2015 as measure by the help-wanted index are:

How does this chapter model define the natural rate of unemployment and what does the natural rate of unemployment depend on.

If the job separation rate is 0.03 and the job finding rate is 0.7, then the natural rate of unemployment is:

The Eurozone data from 2010 to 2015 shows that the job separation rate is:

The model predicts the capital utilization rate, , is:

Thinking About Macroeconomics

National-Income Accounting: Gross Domestic Product and the Price Level

Introduction to Economic Growth

Working With the Solow Growth Model

Conditional Convergence and Long-Run Economic Growth

Macroeconomics Without Microeconomic Foundations

Markets, Prices, Supply, and Demand

Consumption, Saving, and Investment

An Equilibrium Business-Cycle Model

The Demand for Money and the Price Level

Inflation, Money Growth, and Interest Rates

Government Expenditure

Taxes

Public Debt

Money and Business Cycles I: the Price-Misperceptions Model

Money and Business Cycles Ii: Sticky Prices and Nominal Wage Rates

World Markets in Goods and Credit

Exchange Rates

Filters

Exam 10: Capital Utilization and Unemployment

The capital utilization rate is:

When the capital utilization rate, , increases then:

Job separations can be due to:

When the capital utilization rate, , increases then:

The Eurozone data from 1999.1 to 2013.4 shows the capital utilization rate, , is:

How does the capital utilization rate affect the depreciation rate and why?

The model predicts that with a positive shock to technology the capital utilization rate, , will

Discouraged workers are:

Unemployment can exist in a market clearing model, if:

When the capital utilization rate, , is added to the model the interest rate becomes countercyclical.

An increase in unemployment insurance payments decreases effective real income while unemployed.

The job-finding rate is:

One minus the unemployment rate, 1 - u, is:

We expect that an increase in the effective real income while unemployed ,

Higher capital utilization rates may raise user costs of capital because higher utilization rates may imply:

In Eurozone data vacancies from 2009 to 2015 as measure by the help-wanted index are:

How does this chapter model define the natural rate of unemployment and what does the natural rate of unemployment depend on.

If the job separation rate is 0.03 and the job finding rate is 0.7, then the natural rate of unemployment is:

The Eurozone data from 2010 to 2015 shows that the job separation rate is:

The model predicts the capital utilization rate, , is:

Thinking About Macroeconomics

National-Income Accounting: Gross Domestic Product and the Price Level

Introduction to Economic Growth

Working With the Solow Growth Model

Conditional Convergence and Long-Run Economic Growth

Macroeconomics Without Microeconomic Foundations

Markets, Prices, Supply, and Demand

Consumption, Saving, and Investment

An Equilibrium Business-Cycle Model

The Demand for Money and the Price Level

Inflation, Money Growth, and Interest Rates

Government Expenditure

Taxes

Public Debt

Money and Business Cycles I: the Price-Misperceptions Model

Money and Business Cycles Ii: Sticky Prices and Nominal Wage Rates

World Markets in Goods and Credit

Exchange Rates

Filters