Question 1

Which type of unemployment is likely to decrease the most during an economy's boom?​

Accepted Answer

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

Question 2

A sustained decrease in an economy's price level is known as deflation.​

Accepted Answer

A) True 
 B)False

Question 3

Inflation:​

Accepted Answer

A) always reduces real income. 
B) never reduces real income. 
C) reduces the real income of workers when wages increase more than prices do. 
D) reduces the real income of workers when wages increase less than prices do. 
E) increases the real income of workers only when wages increase less than prices do. 
A) always reduces real income. 
B) never reduces real income. 
C) reduces the real income of workers when wages increase more than prices do. 
D) reduces the real income of workers when wages increase less than prices do. 
E) increases the real income of workers only when wages increase less than prices do.

Question 4

The nominal interest rate is equal to the real interest rate minus the anticipated inflation rate.​

Accepted Answer

A) True 
 B)False

Question 5

Discouraged workers are included in labor force figures,but not in unemployment figures.​

Accepted Answer

A) True 
 B)False

Question 6

Consider an economy with an adult population of 100,50 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The labor force participation rate is _____.​

Accepted Answer

A) 100 percent 
B) 60 percent​ 
C) 50 percent​ 
D) 40 percent​ 
E) 10 percent​ 
A) 100 percent 
B) 60 percent​ 
C) 50 percent​ 
D) 40 percent​ 
E) 10 percent​

Question 7

An individual with a Ph.D.in physics who can find employment only in a pizza parlor would be considered:​

Accepted Answer

A) discouraged. 
B) underemployed. 
C) overemployed. 
D) voluntarily unemployed. 
E) long-term unemployed. 
A) discouraged. 
B) underemployed. 
C) overemployed. 
D) voluntarily unemployed. 
E) long-term unemployed.

Question 8

Consider an economy made up of 100 people,60 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The number of unemployed persons is _____.​

Accepted Answer

A) 10 
B) 15​ 
C) 40​ 
D) 30​ 
E) 90​ 
A) 10 
B) 15​ 
C) 40​ 
D) 30​ 
E) 90​

Question 9

In 2004,Jamal lost his job as a shipbuilder.His shipyard never reopened,and his very specialized skills as a shipbuilder were no longer in demand.Jamal's unemployment is best classified as _____.​

Accepted Answer

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

Question 10

The labor force in an economy consists of all:​

Accepted Answer

A) the people in the economy who are not retired. 
B) the people in the economy over 16 years of age. 
C) the adults in the economy between 18 and 65 years old who are able to work. 
D) the civilian noninstitutional adult population that is either working or looking for work. 
E) the noninstitutional adult population who are graduates of high school. 
A) the people in the economy who are not retired. 
B) the people in the economy over 16 years of age. 
C) the adults in the economy between 18 and 65 years old who are able to work. 
D) the civilian noninstitutional adult population that is either working or looking for work. 
E) the noninstitutional adult population who are graduates of high school.

Question 11

Jacqueline has a Ph.D.in economics.She has turned down many job offers because she eventually hopes to teach at one of the top ten universities in her field.The type of unemployment she is experiencing is:​

Accepted Answer

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

Question 12

One of the most widely reported measures of inflation is the:​

Accepted Answer

A) consumer price index. 
B) producer price index. 
C) GDP deflator. 
D) Gini coefficient. 
E) real interest rate. 
A) consumer price index. 
B) producer price index. 
C) GDP deflator. 
D) Gini coefficient. 
E) real interest rate.

Question 13

​If top government officials claim that more people are working now than ever before,then which of the following is true?

Accepted Answer

A) The unemployment rate is lower now than ever before. 
B) The number of people unemployed is lower now than ever before. 
C) The employment rate is higher now than ever before. 
D) The number of people in the labor force is higher now than ever before. 
E) The number of people employed is higher now than ever before. 
A) The unemployment rate is lower now than ever before. 
B) The number of people unemployed is lower now than ever before. 
C) The employment rate is higher now than ever before. 
D) The number of people in the labor force is higher now than ever before. 
E) The number of people employed is higher now than ever before.

Question 14

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

Accepted Answer

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

Question 15

Which of the following periods was not characterized by inflation in the U.S.economic history?​

Accepted Answer

A) 1917-1920 
B) 1929-1933​ 
C) 1947​ 
D) 1978-1980​ 
E) 1980-1989​ 
A) 1917-1920 
B) 1929-1933​ 
C) 1947​ 
D) 1978-1980​ 
E) 1980-1989​

Question 16

Since the end of World War II,the U.S.price level has:​

Accepted Answer

A) increased tenfold. 
B) increased by an average of 10 percent each year. 
C) increased and decreased with equal regularity,leaving the price level almost constant. 
D) increased by 50 percent. 
E) doubled. 
A) increased tenfold. 
B) increased by an average of 10 percent each year. 
C) increased and decreased with equal regularity,leaving the price level almost constant. 
D) increased by 50 percent. 
E) doubled.

Question 17

A decrease in a person's real wage necessarily means:​

Accepted Answer

A) lower purchasing power. 
B) a lower nominal wage. 
C) a lower personal disposable income. 
D) a higher nominal wage. 
E) a higher personal disposable income. 
A) lower purchasing power. 
B) a lower nominal wage. 
C) a lower personal disposable income. 
D) a higher nominal wage. 
E) a higher personal disposable income.

Question 18

If the CPI in the United States was 150 in 2003 and 160 in 2004,the inflation rate over the year is _____.​

Accepted Answer

A) 10 percent 
B) 20 percent​ 
C) 7 percent​ 
D) 30 percent​ 
E) 50 percent​ 
A) 10 percent 
B) 20 percent​ 
C) 7 percent​ 
D) 30 percent​ 
E) 50 percent​

Question 19

An increase in the supply of loanable funds,other things constant,will increase the interest rate.​

Accepted Answer

A) True 
 B)False

Question 20

Which of the following groups tends to have the highest unemployment rate in the United States?​

Accepted Answer

A) African American teenagers 
B) Workers,age 25 or older,who are college graduates​ 
C) White women​ 
D) Workers,25 years of age or older,who are high school dropouts​ 
E) White teenagers​ 
A) African American teenagers 
B) Workers,age 25 or older,who are college graduates​ 
C) White women​ 
D) Workers,25 years of age or older,who are high school dropouts​ 
E) White teenagers​

Which type of unemployment is likely to decrease the most during an economy's boom?

A sustained decrease in an economy's price level is known as deflation.

Inflation:

The nominal interest rate is equal to the real interest rate minus the anticipated inflation rate.

Discouraged workers are included in labor force figures,but not in unemployment figures.

Consider an economy with an adult population of 100,50 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The labor force participation rate is _____.

An individual with a Ph.D.in physics who can find employment only in a pizza parlor would be considered:

Consider an economy made up of 100 people,60 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The number of unemployed persons is _____.

In 2004,Jamal lost his job as a shipbuilder.His shipyard never reopened,and his very specialized skills as a shipbuilder were no longer in demand.Jamal's unemployment is best classified as _____.

The labor force in an economy consists of all:

Jacqueline has a Ph.D.in economics.She has turned down many job offers because she eventually hopes to teach at one of the top ten universities in her field.The type of unemployment she is experiencing is:

One of the most widely reported measures of inflation is the:

If top government officials claim that more people are working now than ever before,then which of the following is true?

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

Which of the following periods was not characterized by inflation in the U.S.economic history?

Since the end of World War II,the U.S.price level has:

A decrease in a person's real wage necessarily means:

If the CPI in the United States was 150 in 2003 and 160 in 2004,the inflation rate over the year is _____.

An increase in the supply of loanable funds,other things constant,will increase the interest rate.

Which of the following groups tends to have the highest unemployment rate in the United States?

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

Which type of unemployment is likely to decrease the most during an economy's boom?​

A sustained decrease in an economy's price level is known as deflation.​

Inflation:​

The nominal interest rate is equal to the real interest rate minus the anticipated inflation rate.​

Discouraged workers are included in labor force figures,but not in unemployment figures.​

Consider an economy with an adult population of 100,50 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The labor force participation rate is _____.​

An individual with a Ph.D.in physics who can find employment only in a pizza parlor would be considered:​

Consider an economy made up of 100 people,60 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The number of unemployed persons is _____.​

In 2004,Jamal lost his job as a shipbuilder.His shipyard never reopened,and his very specialized skills as a shipbuilder were no longer in demand.Jamal's unemployment is best classified as _____.​

The labor force in an economy consists of all:​

Jacqueline has a Ph.D.in economics.She has turned down many job offers because she eventually hopes to teach at one of the top ten universities in her field.The type of unemployment she is experiencing is:​

One of the most widely reported measures of inflation is the:​

​If top government officials claim that more people are working now than ever before,then which of the following is true?

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

Which of the following periods was not characterized by inflation in the U.S.economic history?​

Since the end of World War II,the U.S.price level has:​

A decrease in a person's real wage necessarily means:​

If the CPI in the United States was 150 in 2003 and 160 in 2004,the inflation rate over the year is _____.​

An increase in the supply of loanable funds,other things constant,will increase the interest rate.​

Which of the following groups tends to have the highest unemployment rate in the United States?​

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

Which type of unemployment is likely to decrease the most during an economy's boom?

A sustained decrease in an economy's price level is known as deflation.

Inflation:

The nominal interest rate is equal to the real interest rate minus the anticipated inflation rate.

Discouraged workers are included in labor force figures,but not in unemployment figures.

Consider an economy with an adult population of 100,50 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The labor force participation rate is _____.

An individual with a Ph.D.in physics who can find employment only in a pizza parlor would be considered:

Consider an economy made up of 100 people,60 of whom hold jobs,10 of whom are looking for work,and 15 of whom are retired.The number of unemployed persons is _____.

In 2004,Jamal lost his job as a shipbuilder.His shipyard never reopened,and his very specialized skills as a shipbuilder were no longer in demand.Jamal's unemployment is best classified as _____.

The labor force in an economy consists of all:

Jacqueline has a Ph.D.in economics.She has turned down many job offers because she eventually hopes to teach at one of the top ten universities in her field.The type of unemployment she is experiencing is:

One of the most widely reported measures of inflation is the:

If top government officials claim that more people are working now than ever before,then which of the following is true?

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

Which of the following periods was not characterized by inflation in the U.S.economic history?

Since the end of World War II,the U.S.price level has:

A decrease in a person's real wage necessarily means:

If the CPI in the United States was 150 in 2003 and 160 in 2004,the inflation rate over the year is _____.

An increase in the supply of loanable funds,other things constant,will increase the interest rate.

Which of the following groups tends to have the highest unemployment rate in the United States?