Question 1

Inflation can only be caused by an increase in aggregate demand.​

Accepted Answer

A) True 
 B)False

Question 2

Which of the following people would be counted among the unemployed?​

Accepted Answer

A) A new college graduate selling newspaper advertisements part time while looking for other work 
B) A new college graduate selling newspaper advertisements full time while looking for other work​ 
C) A new college graduate selling newspaper advertisements part time and not looking for other work​ 
D) A new college graduate who gets tired of selling newspaper advertisements and takes off on a motorcycle trip to Alaska​ 
E) A new college graduate not qualified for any of the jobs available in his small town​ 
A) A new college graduate selling newspaper advertisements part time while looking for other work 
B) A new college graduate selling newspaper advertisements full time while looking for other work​ 
C) A new college graduate selling newspaper advertisements part time and not looking for other work​ 
D) A new college graduate who gets tired of selling newspaper advertisements and takes off on a motorcycle trip to Alaska​ 
E) A new college graduate not qualified for any of the jobs available in his small town​

Question 3

Full employment is considered a major economic goal because:​

Accepted Answer

A) specialization is not possible without full employment. 
B) economic growth can only occur when there is full employment. 
C) the opportunity cost of unemployment is lost production. 
D) profit maximization of firms can only occur when there is full employment. 
E) inflation will be lower when full employment is achieved. 
A) specialization is not possible without full employment. 
B) economic growth can only occur when there is full employment. 
C) the opportunity cost of unemployment is lost production. 
D) profit maximization of firms can only occur when there is full employment. 
E) inflation will be lower when full employment is achieved.

Question 4

​The unemployment rate will decrease whenever there is a(n)_____.

Accepted Answer

A) increase in the number of persons classified as unemployed 
B) decrease in the number of unemployed persons relative to the size of the labor force​ 
C) decrease in the size of the population and no change in the number of persons classified as employed​ 
D) reduction in the size of the labor force​ 
E) decrease in the number of unemployed persons and no change the population​ 
A) increase in the number of persons classified as unemployed 
B) decrease in the number of unemployed persons relative to the size of the labor force​ 
C) decrease in the size of the population and no change in the number of persons classified as employed​ 
D) reduction in the size of the labor force​ 
E) decrease in the number of unemployed persons and no change the population​

Question 5

If future price changes were perfectly anticipated by both borrowers and lenders,then _____.​

Accepted Answer

A) the expected real interest rate would be higher than the actual rate 
B) the expected real interest rate would lower than the actual rate 
C) the real interest rate in the future would decrease by the amount of the price increase 
D) the real interest rate in the future would increase by the amount of the price increase 
E) the real interest rate in the future would remain unchanged 
A) the expected real interest rate would be higher than the actual rate 
B) the expected real interest rate would lower than the actual rate 
C) the real interest rate in the future would decrease by the amount of the price increase 
D) the real interest rate in the future would increase by the amount of the price increase 
E) the real interest rate in the future would remain unchanged

Question 6

Which of the following types of unemployment is the hardest to reduce?​

Accepted Answer

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

Question 7

A major cost of unemployment is lost production.​

Accepted Answer

A) True 
 B)False

Question 8

During periods of high inflation,people want to hold as much money as possible.​

Accepted Answer

A) True 
 B)False

Question 9

During periods of inflation,all prices increase.​

Accepted Answer

A) True 
 B)False

Question 10

Structural unemployment refers to unemployment that results from:​

Accepted Answer

A) inefficiencies in the market for labor that prolong the job search. 
B) being in the wrong geographical location. 
C) the specialization and division of labor. 
D) seasonal decreases in demand for labor. 
E) a recession in the economy. 
A) inefficiencies in the market for labor that prolong the job search. 
B) being in the wrong geographical location. 
C) the specialization and division of labor. 
D) seasonal decreases in demand for labor. 
E) a recession in the economy.

Question 11

The labor force participation rate for women in the United States has _____.​

Accepted Answer

A) stayed the same over the last 30 years 
B) increased significantly since the 1950s​ 
C) decreased significantly since the 1950s​ 
D) fluctuated substantially both upward and downward since the 1950s​ 
E) increased only very slightly since the 1950s​ 
A) stayed the same over the last 30 years 
B) increased significantly since the 1950s​ 
C) decreased significantly since the 1950s​ 
D) fluctuated substantially both upward and downward since the 1950s​ 
E) increased only very slightly since the 1950s​

Question 12

Most of the unemployment during the Great Depression was cyclical unemployment.​

Accepted Answer

A) True 
 B)False

Question 13

Cyclical unemployment results from:​

Accepted Answer

A) a mismatch of skills. 
B) being in the wrong geographical location. 
C) monetary cost and the time it takes to find the best job. 
D) seasonal decreases in demand for labor. 
E) prolonged declines in business activity. 
A) a mismatch of skills. 
B) being in the wrong geographical location. 
C) monetary cost and the time it takes to find the best job. 
D) seasonal decreases in demand for labor. 
E) prolonged declines in business activity.

Question 14

If the official unemployment rate increases from February to March because of sluggish sales in the automobile industry,then the increase can be blamed on:​

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 15

Juanita worked for a defense contractor in the United States.During the 2008 recession,the government cut spending and Juanita and ninety-nine others were laid off.In such a case,the unemployment Juanita is experiencing is _____.​

Accepted Answer

A) cyclical 
B) structural​ 
C) seasonal​ 
D) frictional​ 
E) voluntary​ 
A) cyclical 
B) structural​ 
C) seasonal​ 
D) frictional​ 
E) voluntary​

Question 16

Inmates from the county prison who are on work release are counted as part of the labor force.​

Accepted Answer

A) True 
 B)False

Question 17

Which of the following events would most likely cause the nominal interest rate to fall?​

Accepted Answer

A) A decrease in the supply of loanable funds 
B) An increase in the demand for loanable funds​ 
C) An increase in the supply of loanable funds and an increase in the demand for loanable funds​ 
D) An increase in the supply of loanable funds and a decrease in the demand for loanable funds​ 
E) A decrease in the supply of loanable funds and an increase in the demand for loanable funds​ 
A) A decrease in the supply of loanable funds 
B) An increase in the demand for loanable funds​ 
C) An increase in the supply of loanable funds and an increase in the demand for loanable funds​ 
D) An increase in the supply of loanable funds and a decrease in the demand for loanable funds​ 
E) A decrease in the supply of loanable funds and an increase in the demand for loanable funds​

Question 18

Uncertainty about inflation:​

Accepted Answer

A) shifts the attention of business managers away from exchange rate movements and toward concerns about productivity. 
B) reduces the difficulty of making international business decisions. 
C) make suppliers link the selling prices of their goods to the overall inflation rate. 
D) undermines money's importance as a link between the present and the future. 
E) makes contracts easier to negotiate. 
A) shifts the attention of business managers away from exchange rate movements and toward concerns about productivity. 
B) reduces the difficulty of making international business decisions. 
C) make suppliers link the selling prices of their goods to the overall inflation rate. 
D) undermines money's importance as a link between the present and the future. 
E) makes contracts easier to negotiate.

Question 19

Which of the following people would be counted in the labor force?​

Accepted Answer

A) Chou,who lost his job and last looked for work three months ago 
B) Stephanie,who holds a Ph.D.in history but can only find part-time employment at a fast food restaurant​ 
C) Jordan,who would like to work as a stockbroker but is a stay-at-home father​ 
D) Steffan,who is a patient in a mental hospital​ 
E) Monique,age 90,who is enjoying her retirement in Montana​ 
A) Chou,who lost his job and last looked for work three months ago 
B) Stephanie,who holds a Ph.D.in history but can only find part-time employment at a fast food restaurant​ 
C) Jordan,who would like to work as a stockbroker but is a stay-at-home father​ 
D) Steffan,who is a patient in a mental hospital​ 
E) Monique,age 90,who is enjoying her retirement in Montana​

Question 20

If someone with a Ph.D.in philosophy finds work as a taxi driver,but continues to look for a college teaching position,he is counted as being employed.​

Accepted Answer

A) True 
 B)False

Inflation can only be caused by an increase in aggregate demand.

Which of the following people would be counted among the unemployed?

Full employment is considered a major economic goal because:

The unemployment rate will decrease whenever there is a(n)_____.

If future price changes were perfectly anticipated by both borrowers and lenders,then _____.

Which of the following types of unemployment is the hardest to reduce?

A major cost of unemployment is lost production.

During periods of high inflation,people want to hold as much money as possible.

During periods of inflation,all prices increase.

Structural unemployment refers to unemployment that results from:

The labor force participation rate for women in the United States has _____.

Most of the unemployment during the Great Depression was cyclical unemployment.

Cyclical unemployment results from:

If the official unemployment rate increases from February to March because of sluggish sales in the automobile industry,then the increase can be blamed on:

Juanita worked for a defense contractor in the United States.During the 2008 recession,the government cut spending and Juanita and ninety-nine others were laid off.In such a case,the unemployment Juanita is experiencing is _____.

Inmates from the county prison who are on work release are counted as part of the labor force.

Which of the following events would most likely cause the nominal interest rate to fall?

Uncertainty about inflation:

Which of the following people would be counted in the labor force?

If someone with a Ph.D.in philosophy finds work as a taxi driver,but continues to look for a college teaching position,he is counted as being employed.

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

Inflation can only be caused by an increase in aggregate demand.​

Which of the following people would be counted among the unemployed?​

Full employment is considered a major economic goal because:​

​The unemployment rate will decrease whenever there is a(n)_____.

If future price changes were perfectly anticipated by both borrowers and lenders,then _____.​

Which of the following types of unemployment is the hardest to reduce?​

A major cost of unemployment is lost production.​

During periods of high inflation,people want to hold as much money as possible.​

During periods of inflation,all prices increase.​

Structural unemployment refers to unemployment that results from:​

The labor force participation rate for women in the United States has _____.​

Most of the unemployment during the Great Depression was cyclical unemployment.​

Cyclical unemployment results from:​

If the official unemployment rate increases from February to March because of sluggish sales in the automobile industry,then the increase can be blamed on:​

Juanita worked for a defense contractor in the United States.During the 2008 recession,the government cut spending and Juanita and ninety-nine others were laid off.In such a case,the unemployment Juanita is experiencing is _____.​

Inmates from the county prison who are on work release are counted as part of the labor force.​

Which of the following events would most likely cause the nominal interest rate to fall?​

Uncertainty about inflation:​

Which of the following people would be counted in the labor force?​

If someone with a Ph.D.in philosophy finds work as a taxi driver,but continues to look for a college teaching position,he is counted as being employed.​

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

Inflation can only be caused by an increase in aggregate demand.

Which of the following people would be counted among the unemployed?

Full employment is considered a major economic goal because:

The unemployment rate will decrease whenever there is a(n)_____.

If future price changes were perfectly anticipated by both borrowers and lenders,then _____.

Which of the following types of unemployment is the hardest to reduce?

A major cost of unemployment is lost production.

During periods of high inflation,people want to hold as much money as possible.

During periods of inflation,all prices increase.

Structural unemployment refers to unemployment that results from:

The labor force participation rate for women in the United States has _____.

Most of the unemployment during the Great Depression was cyclical unemployment.

Cyclical unemployment results from:

If the official unemployment rate increases from February to March because of sluggish sales in the automobile industry,then the increase can be blamed on:

Juanita worked for a defense contractor in the United States.During the 2008 recession,the government cut spending and Juanita and ninety-nine others were laid off.In such a case,the unemployment Juanita is experiencing is _____.

Inmates from the county prison who are on work release are counted as part of the labor force.

Which of the following events would most likely cause the nominal interest rate to fall?

Uncertainty about inflation:

Which of the following people would be counted in the labor force?

If someone with a Ph.D.in philosophy finds work as a taxi driver,but continues to look for a college teaching position,he is counted as being employed.