Question 1

Which of the following is likely to be an effect of inflation?​

Accepted Answer

A) An increase in the willingness of lenders to lend money for longer periods 
B) A decrease in the willingness of borrowers to borrow money for longer periods​ 
C) A decrease in the purchasing power of lenders in the economy​ 
D) An increase in the willingness of people to buy bonds as a hedge against rising prices​ 
E) An increase in the willingness of people to buy physical assets as a hedge against rising prices​ 
A) An increase in the willingness of lenders to lend money for longer periods 
B) A decrease in the willingness of borrowers to borrow money for longer periods​ 
C) A decrease in the purchasing power of lenders in the economy​ 
D) An increase in the willingness of people to buy bonds as a hedge against rising prices​ 
E) An increase in the willingness of people to buy physical assets as a hedge against rising prices​

Question 2

Demand-pull inflation is worse than cost-push inflation because,in addition to higher prices,demand-pull inflation also reduces employment.​

Accepted Answer

A) True 
 B)False

Question 3

The unemployment rate measures the:​

Accepted Answer

A) number of people in the labor force divided by the adult population. 
B) percentage of people in the labor force who are unemployed. 
C) percentage of people in an economy who have dropped out of the labor force. 
D) number of people in the adult population who are looking for work. 
E) number of people in the labor force who are not working. 
A) number of people in the labor force divided by the adult population. 
B) percentage of people in the labor force who are unemployed. 
C) percentage of people in an economy who have dropped out of the labor force. 
D) number of people in the adult population who are looking for work. 
E) number of people in the labor force who are not working.

Question 4

If the aggregate demand curve shifts rightward,then _____.​

Accepted Answer

A) the price level increases and output decreases 
B) the resulting increase in the price level is usually called cost-push inflation​ 
C) the resulting increase in the price level is usually called demand-pull inflation​ 
D) the price level increases as long as the aggregate supply curve shifts leftward​ 
E) the price level decreases and output decreases​ 
A) the price level increases and output decreases 
B) the resulting increase in the price level is usually called cost-push inflation​ 
C) the resulting increase in the price level is usually called demand-pull inflation​ 
D) the price level increases as long as the aggregate supply curve shifts leftward​ 
E) the price level decreases and output decreases​

Question 5

Which of the following groups experiences high unemployment rates?​

Accepted Answer

A) White-collar professionals 
B) Attorneys​ 
C) Technical workers​ 
D) Blue-collar workers​ 
E) Web page designers​ 
A) White-collar professionals 
B) Attorneys​ 
C) Technical workers​ 
D) Blue-collar workers​ 
E) Web page designers​

Question 6

Unanticipated inflation generally hurts borrowers and benefits lenders.​

Accepted Answer

A) True 
 B)False

Question 7

Inflation is defined as a sustained increase in an economy's price level.​

Accepted Answer

A) True 
 B)False

Question 8

If the CPI is 200,then the price level has _____ since the base year.​

Accepted Answer

A) doubled 
B) quadrupled​ 
C) tripled​ 
D) increased five times​ 
E) increased six times​ 
A) doubled 
B) quadrupled​ 
C) tripled​ 
D) increased five times​ 
E) increased six times​

Question 9

In which of the following industries are workers least likely to suffer from cyclical unemployment?​

Accepted Answer

A) Construction industry 
B) Automobile manufacturing​ 
C) Apparel industry​ 
D) Education 
E) Tourism 
A) Construction industry 
B) Automobile manufacturing​ 
C) Apparel industry​ 
D) Education 
E) Tourism

Question 10

Which of the following is most likely to reduce structural unemployment?​

Accepted Answer

A) A reduction in wage rates 
B) Access to better information on local job openings​ 
C) Retraining workers in marketable skills​ 
D) Promotion of full employment through government stabilization policies​ 
E) Reducing the cost of job loss through enhanced unemployment benefits​ 
A) A reduction in wage rates 
B) Access to better information on local job openings​ 
C) Retraining workers in marketable skills​ 
D) Promotion of full employment through government stabilization policies​ 
E) Reducing the cost of job loss through enhanced unemployment benefits​

Which of the following is likely to be an effect of inflation?

Demand-pull inflation is worse than cost-push inflation because,in addition to higher prices,demand-pull inflation also reduces employment.

The unemployment rate measures the:

If the aggregate demand curve shifts rightward,then _____.

Which of the following groups experiences high unemployment rates?

Unanticipated inflation generally hurts borrowers and benefits lenders.

Inflation is defined as a sustained increase in an economy's price level.

If the CPI is 200,then the price level has _____ since the base year.

In which of the following industries are workers least likely to suffer from cyclical unemployment?

Which of the following is most likely to reduce structural unemployment?

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 of the following is likely to be an effect of inflation?​

Demand-pull inflation is worse than cost-push inflation because,in addition to higher prices,demand-pull inflation also reduces employment.​

The unemployment rate measures the:​

If the aggregate demand curve shifts rightward,then _____.​

Which of the following groups experiences high unemployment rates?​

Unanticipated inflation generally hurts borrowers and benefits lenders.​

Inflation is defined as a sustained increase in an economy's price level.​

If the CPI is 200,then the price level has _____ since the base year.​

In which of the following industries are workers least likely to suffer from cyclical unemployment?​

Which of the following is most likely to reduce structural unemployment?​

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 of the following is likely to be an effect of inflation?

Demand-pull inflation is worse than cost-push inflation because,in addition to higher prices,demand-pull inflation also reduces employment.

The unemployment rate measures the:

If the aggregate demand curve shifts rightward,then _____.

Which of the following groups experiences high unemployment rates?

Unanticipated inflation generally hurts borrowers and benefits lenders.

Inflation is defined as a sustained increase in an economy's price level.

If the CPI is 200,then the price level has _____ since the base year.

In which of the following industries are workers least likely to suffer from cyclical unemployment?

Which of the following is most likely to reduce structural unemployment?