Question 1

If taxes decrease, there will be:

Accepted Answer

A)  an increase in aggregate quantity demanded. 
B)  a decrease in aggregate quantity demanded. 
C)  an increase in aggregate demand. 
D)  a decrease in aggregate demand. 
A)  an increase in aggregate quantity demanded. 
B)  a decrease in aggregate quantity demanded. 
C)  an increase in aggregate demand. 
D)  a decrease in aggregate demand.

Question 2

Suppose GDP is currently below the full employment level. The most appropriate stabilization policy would be to:

Accepted Answer

A)  increase taxes. 
B)  increase in the growth rate in the money supply. 
C)  decrease government spending. 
D)  increase interest rates. 
A)  increase taxes. 
B)  increase in the growth rate in the money supply. 
C)  decrease government spending. 
D)  increase interest rates.

Question 3

The natural rate of unemployment:

Accepted Answer

A)  changes slowly over time. 
B)  is constant. 
C)  varies from month to month. 
D)  occurs when there is only cyclical unemployment. 
A)  changes slowly over time. 
B)  is constant. 
C)  varies from month to month. 
D)  occurs when there is only cyclical unemployment.

Question 4

Monetary policy refers to the Federal Reserve's attempts to alter the money supply.

Accepted Answer

A) True 
 B)False

Question 5

Most economists think that the minimum wage improves the situation of the working poor because those who retain their jobs will have higher incomes.

Accepted Answer

A) True 
 B)False

Question 6

Unemployment caused by a mismatch between the skills of prospective workers and the requirements of available jobs is known as:

Accepted Answer

A)  technological unemployment. 
B)  cyclical unemployment. 
C)  frictional unemployment. 
D)  structural unemployment. 
A)  technological unemployment. 
B)  cyclical unemployment. 
C)  frictional unemployment. 
D)  structural unemployment.

Question 7

Given the following information, find the number of persons in the civilian labor force.

Accepted Answer

The number of person

Question 8

Use the following diagram to answer the following questions.
  
-Refer to Minimum Wage. As a result of the minimum wage:

Accepted Answer

A)  N2 to N3 workers enter the market, but cannot find jobs. 
B)  N2 to N1 workers enter the market, but cannot find jobs. 
C)  N1 to N3 workers enter the market, but cannot find jobs. 
D)  the demand for labor will increase. 
A)  N2 to N3 workers enter the market, but cannot find jobs. 
B)  N2 to N1 workers enter the market, but cannot find jobs. 
C)  N1 to N3 workers enter the market, but cannot find jobs. 
D)  the demand for labor will increase.

Question 9

Which of the following best describes frictional unemployment?

Accepted Answer

A)  It is a long-term period of unemployment. 
B)  It is a temporary period of unemployment. 
C)  It is caused by a lack of jobs. 
D)  Workers suffering from this type of unemployment may need retraining. 
A)  It is a long-term period of unemployment. 
B)  It is a temporary period of unemployment. 
C)  It is caused by a lack of jobs. 
D)  Workers suffering from this type of unemployment may need retraining.

Question 10

Jack is an assembly line worker at an automobile plant. He has not worked for the past three weeks because the union has gone on strike. Jack is considered to be:

Accepted Answer

A)  employed. 
B)  unemployed. 
C)  not a member of the labor force. 
D)  a discouraged worker. 
A)  employed. 
B)  unemployed. 
C)  not a member of the labor force. 
D)  a discouraged worker.

Question 11

"Increases in aggregate demand will always result in an increase in employment." Is this statement true or False? Defend your answer.

Accepted Answer

This statement is False. By using the ag

Question 12

Evaluate the following statement. "Expansionary fiscal and monetary policies should be fairly successful in dealing with structural unemployment."

Accepted Answer

Expansionary fiscal and monetary policie

Question 13

Which of the following statements is correct?

Accepted Answer

A)  Unemployment is more a more severe problem in the United States than in most European countries. 
B)  Most economists think that expansionary fiscal policies would not be very effective in dealing with unemployment in most European countries. 
C)  Unemployment problems in most European countries tend to be problems with short-term unemployment. 
D)  Labor unions in the United Stated have been more effective in gaining wage increases for their members than have labor unions in most European countries. 
A)  Unemployment is more a more severe problem in the United States than in most European countries. 
B)  Most economists think that expansionary fiscal policies would not be very effective in dealing with unemployment in most European countries. 
C)  Unemployment problems in most European countries tend to be problems with short-term unemployment. 
D)  Labor unions in the United Stated have been more effective in gaining wage increases for their members than have labor unions in most European countries.

Question 14

During a downturn in the business cycle, decreases in government spending will reduce cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 15

"Reducing cyclical unemployment is possible, but only at the expense of higher price levels." Is this statement true or False? Defend your answer.

Accepted Answer

The student should employ the aggregate

Question 16

As a result of unemployment, Michelle becomes addicted to alcohol. This is an example of:

Accepted Answer

A)  the noneconomic cost of unemployment. 
B)  the economic cost of unemployment. 
C)  the market cost of unemployment. 
D)  the nonmarket cost of unemployment. 
A)  the noneconomic cost of unemployment. 
B)  the economic cost of unemployment. 
C)  the market cost of unemployment. 
D)  the nonmarket cost of unemployment.

Question 17

The economy may continue to experience cyclical unemployment because:

Accepted Answer

A)  it is difficult to use stabilization policy in a timely manner. 
B)  policymakers may not know if fiscal or monetary policy is more appropriate. 
C)  policymakers know precisely how much to change government spending or the money supply in order to achieve full employment. 
D)  policymakers are willing to enact the appropriate policy regardless of the political consequences. 
A)  it is difficult to use stabilization policy in a timely manner. 
B)  policymakers may not know if fiscal or monetary policy is more appropriate. 
C)  policymakers know precisely how much to change government spending or the money supply in order to achieve full employment. 
D)  policymakers are willing to enact the appropriate policy regardless of the political consequences.

Question 18

Suppose GDP is currently at the full employment level. If authorities enact a tax decrease, this will lead to:

Accepted Answer

A)  unemployment. 
B)  increases in output. 
C)  an increase in the price level. 
D)  economic growth. 
A)  unemployment. 
B)  increases in output. 
C)  an increase in the price level. 
D)  economic growth.

Question 19

In recent years, the unemployment rate of blacks and whites has been about the same.

Accepted Answer

A) True 
 B)False

Question 20

Expansionary monetary policy refers to:

Accepted Answer

A)  an increase in the growth rate of the money supply. 
B)  a decrease in the growth rate of the money supply. 
C)  a decrease in the growth rate of bank deposits. 
D)  increased taxes. 
A)  an increase in the growth rate of the money supply. 
B)  a decrease in the growth rate of the money supply. 
C)  a decrease in the growth rate of bank deposits. 
D)  increased taxes.

If taxes decrease, there will be:

Suppose GDP is currently below the full employment level. The most appropriate stabilization policy would be to:

The natural rate of unemployment:

Monetary policy refers to the Federal Reserve's attempts to alter the money supply.

Most economists think that the minimum wage improves the situation of the working poor because those who retain their jobs will have higher incomes.

Unemployment caused by a mismatch between the skills of prospective workers and the requirements of available jobs is known as:

Given the following information, find the number of persons in the civilian labor force.

Use the following diagram to answer the following questions. -Refer to Minimum Wage. As a result of the minimum wage:

Which of the following best describes frictional unemployment?

Jack is an assembly line worker at an automobile plant. He has not worked for the past three weeks because the union has gone on strike. Jack is considered to be:

"Increases in aggregate demand will always result in an increase in employment." Is this statement true or False? Defend your answer.

Evaluate the following statement. "Expansionary fiscal and monetary policies should be fairly successful in dealing with structural unemployment."

Which of the following statements is correct?

During a downturn in the business cycle, decreases in government spending will reduce cyclical unemployment.

"Reducing cyclical unemployment is possible, but only at the expense of higher price levels." Is this statement true or False? Defend your answer.

As a result of unemployment, Michelle becomes addicted to alcohol. This is an example of:

The economy may continue to experience cyclical unemployment because:

Suppose GDP is currently at the full employment level. If authorities enact a tax decrease, this will lead to:

In recent years, the unemployment rate of blacks and whites has been about the same.

Expansionary monetary policy refers to:

Economic Growth: an Introduction to Scarcity and Choice

An Introduction to Economic Systems and the Workings of the Price System

Competitive Markets and Government Policy: Agriculture

Efficiency in Resource Allocation: How Much Do We Have How Much Do We Want

Market Power: Does It Help or Hurt the Economy

Air Pollution: Balancing Benefits and Costs

Health Care: How Much for Whom

Crime and Drugs: a Modern Dilemma

College Education: Is It Worth the Cost

Educational Reform: the Role of Incentives and Choice

Poverty: Old and New Approaches to a Persistent Problem

Tracking and Explaining the Macroeconomy

Inflation: a Monetary Phenomenon

Sustained Budget Deficits: Is This Any Way to Run a Government

Social Security: Leading Issues and Approaches to Reform

International Trade: Beneficial, but Controversial

Financing Trade and the Trade Deficit

Filters

Exam 13: Unemployment: the Legacy of Recession, Technological Change, and Free Choice

If taxes decrease, there will be:

Suppose GDP is currently below the full employment level. The most appropriate stabilization policy would be to:

The natural rate of unemployment:

Monetary policy refers to the Federal Reserve's attempts to alter the money supply.

Most economists think that the minimum wage improves the situation of the working poor because those who retain their jobs will have higher incomes.

Unemployment caused by a mismatch between the skills of prospective workers and the requirements of available jobs is known as:

Given the following information, find the number of persons in the civilian labor force.

Use the following diagram to answer the following questions. -Refer to Minimum Wage. As a result of the minimum wage:

Which of the following best describes frictional unemployment?

Jack is an assembly line worker at an automobile plant. He has not worked for the past three weeks because the union has gone on strike. Jack is considered to be:

"Increases in aggregate demand will always result in an increase in employment." Is this statement true or False? Defend your answer.

Evaluate the following statement. "Expansionary fiscal and monetary policies should be fairly successful in dealing with structural unemployment."

Which of the following statements is correct?

During a downturn in the business cycle, decreases in government spending will reduce cyclical unemployment.

"Reducing cyclical unemployment is possible, but only at the expense of higher price levels." Is this statement true or False? Defend your answer.

As a result of unemployment, Michelle becomes addicted to alcohol. This is an example of:

The economy may continue to experience cyclical unemployment because:

Suppose GDP is currently at the full employment level. If authorities enact a tax decrease, this will lead to:

In recent years, the unemployment rate of blacks and whites has been about the same.

Expansionary monetary policy refers to:

Economic Growth: an Introduction to Scarcity and Choice

An Introduction to Economic Systems and the Workings of the Price System

Competitive Markets and Government Policy: Agriculture

Efficiency in Resource Allocation: How Much Do We Have How Much Do We Want

Market Power: Does It Help or Hurt the Economy

Air Pollution: Balancing Benefits and Costs

Health Care: How Much for Whom

Crime and Drugs: a Modern Dilemma

College Education: Is It Worth the Cost

Educational Reform: the Role of Incentives and Choice

Poverty: Old and New Approaches to a Persistent Problem

Tracking and Explaining the Macroeconomy

Inflation: a Monetary Phenomenon

Sustained Budget Deficits: Is This Any Way to Run a Government

Social Security: Leading Issues and Approaches to Reform

International Trade: Beneficial, but Controversial

Financing Trade and the Trade Deficit

Filters