Question 1

If inflation is much higher than originally anticipated,_____ are better off and _____ are worse off.​

Accepted Answer

A) lenders who extended loans at fixed interest rates; people who borrowed at fixed interest rates 
B) people who borrowed at fixed interest rates; banks that extended loans at fixed interest rates 
C) retired people living on a fixed income; people who had borrowed fixed interest rate loans 
D) people who deposited their savings at fixed interest rates; banks that accepted deposits at fixed interest rates 
E) oil refiners who signed labor contracts agreeing to pay their workers the cost-of-living wage; workers who receive that cost-of-living wage 
A) lenders who extended loans at fixed interest rates; people who borrowed at fixed interest rates 
B) people who borrowed at fixed interest rates; banks that extended loans at fixed interest rates 
C) retired people living on a fixed income; people who had borrowed fixed interest rate loans 
D) people who deposited their savings at fixed interest rates; banks that accepted deposits at fixed interest rates 
E) oil refiners who signed labor contracts agreeing to pay their workers the cost-of-living wage; workers who receive that cost-of-living wage

Question 2

Recently,banking has become easier with automated teller machines replacing bank tellers.The loss of tellers' jobs is an example of _____.​

Accepted Answer

A) cyclical unemployment 
B) structural unemployment​ 
C) frictional unemployment​ 
D) underemployment​ 
E) voluntary unemployment​ 
A) cyclical unemployment 
B) structural unemployment​ 
C) frictional unemployment​ 
D) underemployment​ 
E) voluntary unemployment​

Question 3

In an economy,U = the number of adults who are unemployed,E = the number of adults who are employed,and NLF = the number of adults not in the labor force.The unemployment rate of the economy is equal to:​

Accepted Answer

A) U/(E + NLF). 
B) U/E. 
C) U/(U + 
E) . 
D) U/(E + NLF) 
E) U/(U + E − NLF). 
A) U/(E + NLF). 
B) U/E. 
C) U/(U + 
E) . 
D) U/(E + NLF) 
E) U/(U + E − NLF).

Question 4

​Who among the following would not be considered officially unemployed?

Accepted Answer

A) Jones,who quit his job to look for a better job in another part of the country 
B) Jason,who got fired from his job when the government cut spending​ 
C) Bourne,who is looking for a job after being out of the labor force for five years​ 
D) Sophie,who retired early because she disliked her current job​ 
E) Annie,who dropped out of the labor force after a year of job search​ 
A) Jones,who quit his job to look for a better job in another part of the country 
B) Jason,who got fired from his job when the government cut spending​ 
C) Bourne,who is looking for a job after being out of the labor force for five years​ 
D) Sophie,who retired early because she disliked her current job​ 
E) Annie,who dropped out of the labor force after a year of job search​

Question 5

The labor force consists of all adults who are currently employed.​

Accepted Answer

A) True 
 B)False

Question 6

In periods of high inflation,_____.​

Accepted Answer

A) people want to hold as much money as possible 
B) the purchasing power of money decreases​ 
C) the real interest rate exceeds the nominal interest rate​ 
D) the nominal interest rates are likely to be low​ 
E) the nominal interest rate equals the real interest rate​ 
A) people want to hold as much money as possible 
B) the purchasing power of money decreases​ 
C) the real interest rate exceeds the nominal interest rate​ 
D) the nominal interest rates are likely to be low​ 
E) the nominal interest rate equals the real interest rate​

Question 7

An increase in unemployment benefits is likely to:​

Accepted Answer

A) reduce a person's incentive to look for work. 
B) reduce the opportunity cost of remaining employed. 
C) provide a better safety net for employed families. 
D) decrease the tax imposed on consumers. 
E) increase the need to accept the first job available after becoming unemployed. 
A) reduce a person's incentive to look for work. 
B) reduce the opportunity cost of remaining employed. 
C) provide a better safety net for employed families. 
D) decrease the tax imposed on consumers. 
E) increase the need to accept the first job available after becoming unemployed.

Question 8

The unemployment rate will increase whenever there is a(n):​

Accepted Answer

A) increase in the number of unemployed persons. 
B) increase in the number of unemployed persons relative to the size of the labor force. 
C) increase in the size of the U.S.population but no change in the number of unemployed persons. 
D) increase in the size of the labor force. 
E) increase in the size of the U.S.population and a decrease in the number of unemployed persons. 
A) increase in the number of unemployed persons. 
B) increase in the number of unemployed persons relative to the size of the labor force. 
C) increase in the size of the U.S.population but no change in the number of unemployed persons. 
D) increase in the size of the labor force. 
E) increase in the size of the U.S.population and a decrease in the number of unemployed persons.

Question 9

Inflation is the hardest on those living on fixed incomes.​

Accepted Answer

A) True 
 B)False

Question 10

_____ unemployment is experienced by a customer service representative who is laid off from a job because new technology reduces the need for people to handle customer service inquiries.​

Accepted Answer

A) Seasonal 
B) Cyclical​ 
C) Voluntary​ 
D) Structural​ 
E) Frictional​ 
A) Seasonal 
B) Cyclical​ 
C) Voluntary​ 
D) Structural​ 
E) Frictional​

Question 11

Inflation can be caused:​

Accepted Answer

A) only by increases in aggregate demand. 
B) only by increases in aggregate supply. 
C) only by decreases in aggregate supply. 
D) by increases in aggregate supply or decreases in aggregate demand. 
E) by increases in aggregate demand or decreases in aggregate supply. 
A) only by increases in aggregate demand. 
B) only by increases in aggregate supply. 
C) only by decreases in aggregate supply. 
D) by increases in aggregate supply or decreases in aggregate demand. 
E) by increases in aggregate demand or decreases in aggregate supply.

Question 12

An increase in the interest rate,other things constant,will:​

Accepted Answer

A) shift the supply of loanable funds curve to the left. 
B) shift the supply of loanable funds curve to the right. 
C) increase the quantity of loanable funds supplied. 
D) shift the demand for loanable funds curve to the left. 
E) increase the quantity of loanable funds demanded. 
A) shift the supply of loanable funds curve to the left. 
B) shift the supply of loanable funds curve to the right. 
C) increase the quantity of loanable funds supplied. 
D) shift the demand for loanable funds curve to the left. 
E) increase the quantity of loanable funds demanded.

Question 13

Suppose the total population of an economy is 150 million,the labor force is 100 million,and the unemployment is 94 million.The unemployment rate is _____.​

Accepted Answer

A) 6 percent 
B) 80 percent​ 
C) 94 percent​ 
D) 10 percent​ 
E) 15 percent​ 
A) 6 percent 
B) 80 percent​ 
C) 94 percent​ 
D) 10 percent​ 
E) 15 percent​

Question 14

The official unemployment rate would be higher if it included the existence of hidden unemployment or individuals who are:​

Accepted Answer

A) on unemployment compensation. 
B) not working. 
C) working part time but prefer full-time work. 
D) voluntarily retired. 
E) unemployed and looking for work. 
A) on unemployment compensation. 
B) not working. 
C) working part time but prefer full-time work. 
D) voluntarily retired. 
E) unemployed and looking for work.

Question 15

If the official unemployment rate increases from December to January because the Christmas season is over,we can conclude that _____ is responsible for the increase.​

Accepted Answer

A) seasonal unemployment​ 
B) cyclical unemployment​ 
C) structural unemployment​ 
D) frictional unemployment​ 
E) underemployment​ 
A) seasonal unemployment​ 
B) cyclical unemployment​ 
C) structural unemployment​ 
D) frictional unemployment​ 
E) underemployment​

Question 16

The following image shows the aggregate demand and aggregate supply curves of an economy.In the graph below,the rise in the price levels from P1 to P2 is a result of: ​ ​
Figure 7.1

Accepted Answer

A) cost-pull inflation. 
B) cost-push inflation. 
C) demand-push inflation. 
D) demand-pull inflation. 
E) induced inflation. 
A) cost-pull inflation. 
B) cost-push inflation. 
C) demand-push inflation. 
D) demand-pull inflation. 
E) induced inflation.

Question 17

The unemployment rate rises any time there is an increase in the number of unemployed persons.​

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is likely to happen if people suddenly become more willing to lend money?​

Accepted Answer

A) An increase in demand for loanable funds will increase the interest rate. 
B) An increase in the supply of loanable funds will increase the interest rate. 
C) An increase in the supply of loanable funds will decrease the interest rate. 
D) An increase in demand for loanable funds will decrease the interest rate. 
E) A simultaneous increase in both the supply of and demand for loanable funds makes it impossible to predict what will happen to the rate of interest. 
A) An increase in demand for loanable funds will increase the interest rate. 
B) An increase in the supply of loanable funds will increase the interest rate. 
C) An increase in the supply of loanable funds will decrease the interest rate. 
D) An increase in demand for loanable funds will decrease the interest rate. 
E) A simultaneous increase in both the supply of and demand for loanable funds makes it impossible to predict what will happen to the rate of interest.

Question 19

Not counting _____ as unemployed understates unemployment.​

Accepted Answer

A) children 
B) retired persons​ 
C) students​ 
D) people who do not want to work​ 
E) discouraged workers​ 
A) children 
B) retired persons​ 
C) students​ 
D) people who do not want to work​ 
E) discouraged workers​

Question 20

People who are not currently employed but say they want a job are counted as unemployed only if they:​

Accepted Answer

A) have previously held a job. 
B) are actively seeking employment. 
C) are discouraged workers. 
D) are between 16 and 65 years of age. 
E) are willing to accept any offer of employment. 
A) have previously held a job. 
B) are actively seeking employment. 
C) are discouraged workers. 
D) are between 16 and 65 years of age. 
E) are willing to accept any offer of employment.

If inflation is much higher than originally anticipated,_ are better off and _ are worse off.

Recently,banking has become easier with automated teller machines replacing bank tellers.The loss of tellers' jobs is an example of _____.

In an economy,U = the number of adults who are unemployed,E = the number of adults who are employed,and NLF = the number of adults not in the labor force.The unemployment rate of the economy is equal to:

Who among the following would not be considered officially unemployed?

The labor force consists of all adults who are currently employed.

In periods of high inflation,_____.

An increase in unemployment benefits is likely to:

The unemployment rate will increase whenever there is a(n):

Inflation is the hardest on those living on fixed incomes.

_____ unemployment is experienced by a customer service representative who is laid off from a job because new technology reduces the need for people to handle customer service inquiries.

Inflation can be caused:

An increase in the interest rate,other things constant,will:

Suppose the total population of an economy is 150 million,the labor force is 100 million,and the unemployment is 94 million.The unemployment rate is _____.

The official unemployment rate would be higher if it included the existence of hidden unemployment or individuals who are:

If the official unemployment rate increases from December to January because the Christmas season is over,we can conclude that _____ is responsible for the increase.

The following image shows the aggregate demand and aggregate supply curves of an economy.In the graph below,the rise in the price levels from P₁ to P₂ is a result of: Figure 7.1

The unemployment rate rises any time there is an increase in the number of unemployed persons.

Which of the following is likely to happen if people suddenly become more willing to lend money?

Not counting _____ as unemployed understates unemployment.

People who are not currently employed but say they want a job are counted as unemployed only if they:

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Introduction to Macroeconomics

Tracking the Useconomy

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Exam 7: Unemployment and Inflation

If inflation is much higher than originally anticipated,_____ are better off and _____ are worse off.​

Recently,banking has become easier with automated teller machines replacing bank tellers.The loss of tellers' jobs is an example of _____.​

In an economy,U = the number of adults who are unemployed,E = the number of adults who are employed,and NLF = the number of adults not in the labor force.The unemployment rate of the economy is equal to:​

​Who among the following would not be considered officially unemployed?

The labor force consists of all adults who are currently employed.​

In periods of high inflation,_____.​

An increase in unemployment benefits is likely to:​

The unemployment rate will increase whenever there is a(n):​

Inflation is the hardest on those living on fixed incomes.​

_____ unemployment is experienced by a customer service representative who is laid off from a job because new technology reduces the need for people to handle customer service inquiries.​

Inflation can be caused:​

An increase in the interest rate,other things constant,will:​

Suppose the total population of an economy is 150 million,the labor force is 100 million,and the unemployment is 94 million.The unemployment rate is _____.​

The official unemployment rate would be higher if it included the existence of hidden unemployment or individuals who are:​

If the official unemployment rate increases from December to January because the Christmas season is over,we can conclude that _____ is responsible for the increase.​

The following image shows the aggregate demand and aggregate supply curves of an economy.In the graph below,the rise in the price levels from P1 to P2 is a result of: ​ ​ Figure 7.1

The unemployment rate rises any time there is an increase in the number of unemployed persons.​

Which of the following is likely to happen if people suddenly become more willing to lend money?​

Not counting _____ as unemployed understates unemployment.​

People who are not currently employed but say they want a job are counted as unemployed only if they:​

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Introduction to Macroeconomics

Tracking the Useconomy

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

If inflation is much higher than originally anticipated,_ are better off and _ are worse off.

Recently,banking has become easier with automated teller machines replacing bank tellers.The loss of tellers' jobs is an example of _____.

In an economy,U = the number of adults who are unemployed,E = the number of adults who are employed,and NLF = the number of adults not in the labor force.The unemployment rate of the economy is equal to:

Who among the following would not be considered officially unemployed?

The labor force consists of all adults who are currently employed.

In periods of high inflation,_____.

An increase in unemployment benefits is likely to:

The unemployment rate will increase whenever there is a(n):

Inflation is the hardest on those living on fixed incomes.

_____ unemployment is experienced by a customer service representative who is laid off from a job because new technology reduces the need for people to handle customer service inquiries.

Inflation can be caused:

An increase in the interest rate,other things constant,will:

Suppose the total population of an economy is 150 million,the labor force is 100 million,and the unemployment is 94 million.The unemployment rate is _____.

The official unemployment rate would be higher if it included the existence of hidden unemployment or individuals who are:

If the official unemployment rate increases from December to January because the Christmas season is over,we can conclude that _____ is responsible for the increase.

The following image shows the aggregate demand and aggregate supply curves of an economy.In the graph below,the rise in the price levels from P₁ to P₂ is a result of: Figure 7.1

The unemployment rate rises any time there is an increase in the number of unemployed persons.

Which of the following is likely to happen if people suddenly become more willing to lend money?

Not counting _____ as unemployed understates unemployment.

People who are not currently employed but say they want a job are counted as unemployed only if they: