Question 1

During the Global Economic Crisis,the increase in the unemployment rate in Europe was

Accepted Answer

A) equal to that in the United States. 
B) less than that in the United States. 
C) greater than that in the United States. 
D) impossible to compare given that Europe did not experience crises. 
A) equal to that in the United States. 
B) less than that in the United States. 
C) greater than that in the United States. 
D) impossible to compare given that Europe did not experience crises.

Question 2

Lengthening of the average unemployment spell suggests that ________ unemployment is growing in importance.

Accepted Answer

A) frictional 
B) structural 
C) cyclical 
D) turnover 
A) frictional 
B) structural 
C) cyclical 
D) turnover

Question 3

The layoff of workers in virtually all industries during the 1982 recession is an example of the classification of workers as

Accepted Answer

A) voluntarily unemployed. 
B) structurally unemployed. 
C) cyclically unemployed. 
D) frictionally unemployed. 
A) voluntarily unemployed. 
B) structurally unemployed. 
C) cyclically unemployed. 
D) frictionally unemployed.

Question 4

The typical cyclically unemployed person includes

Accepted Answer

A) Andrew,a teenager who has just entered the labor market looking for his first part-time job. 
B) Barbara,who is re-entering the labor market after a divorce. 
C) Charles,who was laid off from his factory job but expects to be recalled in a few weeks. 
D) Diana,who has quit her job and is now looking for another. 
A) Andrew,a teenager who has just entered the labor market looking for his first part-time job. 
B) Barbara,who is re-entering the labor market after a divorce. 
C) Charles,who was laid off from his factory job but expects to be recalled in a few weeks. 
D) Diana,who has quit her job and is now looking for another.

Question 5

The difference between actual and natural unemployment rates is called ________ unemployment.

Accepted Answer

A) turnover 
B) mismatch 
C) cyclical 
D) measured 
A) turnover 
B) mismatch 
C) cyclical 
D) measured

Question 6

When the actual unemployment rate equals the natural unemployment rate,inflation is

Accepted Answer

A) zero. 
B) constant. 
C) rising. 
D) falling. 
A) zero. 
B) constant. 
C) rising. 
D) falling.

Question 7

Which of the following will NOT affect the natural rate of unemployment?

Accepted Answer

A) minimum wage legislation 
B) restrictive monetary policy 
C) employer discrimination 
D) geographic immobility 
A) minimum wage legislation 
B) restrictive monetary policy 
C) employer discrimination 
D) geographic immobility

Question 8

In the United States,who determines the combination of bond and money creation that finances the federal budget deficit?

Accepted Answer

A) the federal government itself 
B) the Federal Reserve 
C) the private banking system 
D) private bond- and money-holders 
A) the federal government itself 
B) the Federal Reserve 
C) the private banking system 
D) private bond- and money-holders

Question 9

Presidents running for re-election are tempted to urge the Federal Reserve to ________ the rate of money growth in order to reap the political benefits of ________.

Accepted Answer

A) reduce,permanently lower inflation 
B) reduce,temporarily lower inflation 
C) increase,temporarily lower inflation 
D) increase,temporarily higher real GDP 
E) increase,permanently higher real GDP 
A) reduce,permanently lower inflation 
B) reduce,temporarily lower inflation 
C) increase,temporarily lower inflation 
D) increase,temporarily higher real GDP 
E) increase,permanently higher real GDP

Question 10

Which of the following anti-inflation policies imposes costs on society?

Accepted Answer

A) price controls 
B) indexation 
C) reduced growth in nominal demand 
D) all of these 
A) price controls 
B) indexation 
C) reduced growth in nominal demand 
D) all of these

Question 11

Holding the actual unemployment rate below the natural unemployment rate eventually causes the natural rate to fall toward the actual,according to the ________ hypothesis,implying that an aggressive stimulative demand policy causes a ________ acceleration of inflation.

Accepted Answer

A) hysteresis,temporary 
B) hysteresis,permanent 
C) structuralist,temporary 
D) structuralist,permanent 
A) hysteresis,temporary 
B) hysteresis,permanent 
C) structuralist,temporary 
D) structuralist,permanent

Question 12

What is the "inflation tax"?

Accepted Answer

A) the difference between nominal and real interest rates received on financial assets,due to inflation 
B) the fact that our tax system is based on nominal incomes and not real incomes,so that the government collects more taxes due to inflation alone 
C) the government obtaining goods in exchange for newly created high-powered money that does not add to the real value of private assets due to the resulting inflation 
D) the fact that greater government spending leaves fewer goods available to the private sector,thus lowering their prices. 
A) the difference between nominal and real interest rates received on financial assets,due to inflation 
B) the fact that our tax system is based on nominal incomes and not real incomes,so that the government collects more taxes due to inflation alone 
C) the government obtaining goods in exchange for newly created high-powered money that does not add to the real value of private assets due to the resulting inflation 
D) the fact that greater government spending leaves fewer goods available to the private sector,thus lowering their prices.

During the Global Economic Crisis,the increase in the unemployment rate in Europe was

Lengthening of the average unemployment spell suggests that ________ unemployment is growing in importance.

The layoff of workers in virtually all industries during the 1982 recession is an example of the classification of workers as

The typical cyclically unemployed person includes

The difference between actual and natural unemployment rates is called ________ unemployment.

When the actual unemployment rate equals the natural unemployment rate,inflation is

Which of the following will NOT affect the natural rate of unemployment?

In the United States,who determines the combination of bond and money creation that finances the federal budget deficit?

Presidents running for re-election are tempted to urge the Federal Reserve to the rate of money growth in order to reap the political benefits of .

Which of the following anti-inflation policies imposes costs on society?

Holding the actual unemployment rate below the natural unemployment rate eventually causes the natural rate to fall toward the actual,according to the hypothesis,implying that an aggressive stimulative demand policy causes a acceleration of inflation.

What is the "inflation tax"?

What Is Macroeconomics

The Measurement of Income,prices,and Unemployment

Income and Interest Rates: the Keynesian Cross Model and the Is Curve

Strong and Weak Policy Effects in the Is-Lm Model

Financial Markets, financial Regulation, and Economic Instability

The Government Budget, the Government Debt, and the Limitations of Fiscal Policy

International Trade, exchange Rates, and Macroeconomic Policy

Aggregate Demand, aggregate Supply, and the Great Depression

Inflation: Its Causes and Cures

The Theory of Economic Growth

The Big Questions of Economic Growth

Money,banks,and the Federal Reserve

The Goals, tools, and Rules of Monetary Policy

The Economics of Consumption Behavior

The Economics of Investment Behavior

New Classical Macro and New Keynesian Macro

Conclusion: Where We Stand

Filters

Exam 10: The Goals of Stabilization Policy: Low Inflation and Low Unemployment

During the Global Economic Crisis,the increase in the unemployment rate in Europe was

Lengthening of the average unemployment spell suggests that ________ unemployment is growing in importance.

The layoff of workers in virtually all industries during the 1982 recession is an example of the classification of workers as

The typical cyclically unemployed person includes

The difference between actual and natural unemployment rates is called ________ unemployment.

When the actual unemployment rate equals the natural unemployment rate,inflation is

Which of the following will NOT affect the natural rate of unemployment?

In the United States,who determines the combination of bond and money creation that finances the federal budget deficit?

Presidents running for re-election are tempted to urge the Federal Reserve to ________ the rate of money growth in order to reap the political benefits of ________.

Which of the following anti-inflation policies imposes costs on society?

Holding the actual unemployment rate below the natural unemployment rate eventually causes the natural rate to fall toward the actual,according to the ________ hypothesis,implying that an aggressive stimulative demand policy causes a ________ acceleration of inflation.

What is the "inflation tax"?

What Is Macroeconomics

The Measurement of Income,prices,and Unemployment

Income and Interest Rates: the Keynesian Cross Model and the Is Curve

Strong and Weak Policy Effects in the Is-Lm Model

Financial Markets, financial Regulation, and Economic Instability

The Government Budget, the Government Debt, and the Limitations of Fiscal Policy

International Trade, exchange Rates, and Macroeconomic Policy

Aggregate Demand, aggregate Supply, and the Great Depression

Inflation: Its Causes and Cures

The Theory of Economic Growth

The Big Questions of Economic Growth

Money,banks,and the Federal Reserve

The Goals, tools, and Rules of Monetary Policy

The Economics of Consumption Behavior

The Economics of Investment Behavior

New Classical Macro and New Keynesian Macro

Conclusion: Where We Stand

Filters

Presidents running for re-election are tempted to urge the Federal Reserve to the rate of money growth in order to reap the political benefits of .

Holding the actual unemployment rate below the natural unemployment rate eventually causes the natural rate to fall toward the actual,according to the hypothesis,implying that an aggressive stimulative demand policy causes a acceleration of inflation.