Question 1

A decrease 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) increase the quantity of loanable funds demanded 
D) increase the quantity of loanable funds supplied 
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) increase the quantity of loanable funds demanded 
D) increase the quantity of loanable funds supplied 
E) shift the supply of loanable funds curve to the right

Question 2

Which of the following people would be classified as unemployed?

Accepted Answer

A) a person who wants a job as a fashion model but cannot find work in that field 
B) someone who quits a part-time job to attend school full-time 
C) someone who gives up looking for a job 
D) a person who works at a job that underemploys his or her skills 
E) a person who works part-time and would rather work full-time 
A) a person who wants a job as a fashion model but cannot find work in that field 
B) someone who quits a part-time job to attend school full-time 
C) someone who gives up looking for a job 
D) a person who works at a job that underemploys his or her skills 
E) a person who works part-time and would rather work full-time

Question 3

Since World War II, the U.S. economy has experienced

Accepted Answer

A) a decrease in the civilian labor force 
B) a decrease in the number of unemployed persons 
C) a decrease in the number of employed persons 
D) an increase in the labor force participation rate of women 
E) a declining unemployment rate as a general trend 
A) a decrease in the civilian labor force 
B) a decrease in the number of unemployed persons 
C) a decrease in the number of employed persons 
D) an increase in the labor force participation rate of women 
E) a declining unemployment rate as a general trend

Question 4

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) been influenced by decreasing real wages since 1960 
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) been influenced by decreasing real wages since 1960 
D) fluctuated substantially both upward and downward since the 1950s 
E) increased only very slightly since the 1950s

Question 5

Exhibit 7-1
  
-The inflation illustrated in Exhibit 7-1 would be considered:

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 6

Which of the following is true about labor force participation?

Accepted Answer

A) When workers become unemployed, the labor force participation rate declines. 
B) When the unemployed become "discouraged workers," the labor force participation rate declines. 
C) When workers are not fully using their skills, the labor force participation rate decreases. 
D) Since the 1950s the labor force participation rate of women has decreased in the United States. 
E) The trend toward earlier retirement has increased the labor force participation rate in the United States. 
A) When workers become unemployed, the labor force participation rate declines. 
B) When the unemployed become "discouraged workers," the labor force participation rate declines. 
C) When workers are not fully using their skills, the labor force participation rate decreases. 
D) Since the 1950s the labor force participation rate of women has decreased in the United States. 
E) The trend toward earlier retirement has increased the labor force participation rate in the United States.

Question 7

The unemployment rate for blacks in the United States is higher than that for whites.

Accepted Answer

A) True 
 B)False

Question 8

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 9

It is difficult to compare unemployment rates across countries because methods of measuring unemployment are not standardized.

Accepted Answer

A) True 
 B)False

Question 10

If the official unemployment rate increases in August from its July level, we can conclude that __________ unemployment is responsible for the increase.

Accepted Answer

A) seasonal 
B) cyclical 
C) structural 
D) frictional 
E) any of the causes of 
A) seasonal 
B) cyclical 
C) structural 
D) frictional 
E) any of the causes of

Question 11

If the expected inflation rate is high, the nominal interest rate will be low.

Accepted Answer

A) True 
 B)False

Question 12

Unemployment arising from mismatch of skills is called

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 13

Demand-pull inflation is caused by an

Accepted Answer

A) inward shift of the aggregate demand curve 
B) inward shift of the aggregate supply curve 
C) outward shift of the aggregate supply and demand curves 
D) outward shift of the aggregate demand curve 
E) outward shift of the aggregate supply curve 
A) inward shift of the aggregate demand curve 
B) inward shift of the aggregate supply curve 
C) outward shift of the aggregate supply and demand curves 
D) outward shift of the aggregate demand curve 
E) outward shift of the aggregate supply curve

Question 14

Inflation is defined as a sustained increase in the price level.

Accepted Answer

A) True 
 B)False

Question 15

Unanticipated inflation generally hurts borrowers and benefits lenders.

Accepted Answer

A) True 
 B)False

Question 16

Most of the unemployment experienced in the United States during the Great Depression was

Accepted Answer

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

Question 17

Inflation can be caused by

Accepted Answer

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

Question 18

In the United States,

Accepted Answer

A) the average inflation rate was higher before 1950 than after 
B) the average inflation rate was higher after 1950 than before 
C) inflation caused no serious problems before World War II 
D) inflation caused no serious problems after World War II 
E) the implicit price deflator was used to measure inflation before World War II, and the consumer price index has been used since then. 
A) the average inflation rate was higher before 1950 than after 
B) the average inflation rate was higher after 1950 than before 
C) inflation caused no serious problems before World War II 
D) inflation caused no serious problems after World War II 
E) the implicit price deflator was used to measure inflation before World War II, and the consumer price index has been used since then.

Question 19

In periods of high inflation,

Accepted Answer

A) people want to hold as much money as possible 
B) the purchasing power of money is increasing 
C) nobody wants to work and earn income 
D) high nominal interest rates are likely to result 
E) nobody wants to buy goods 
A) people want to hold as much money as possible 
B) the purchasing power of money is increasing 
C) nobody wants to work and earn income 
D) high nominal interest rates are likely to result 
E) nobody wants to buy goods

Question 20

Jamal lost his job as a shipbuilder during 2004. His shipyard never reopened, and so his very specialized skills are 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

Exam 8: Unemployment and Inflation

A decrease in the interest rate, other things constant, will

Which of the following people would be classified as unemployed?

Since World War II, the U.S. economy has experienced

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

Exhibit 7-1 -The inflation illustrated in Exhibit 7-1 would be considered:

Which of the following is true about labor force participation?

The unemployment rate for blacks in the United States is higher than that for whites.

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

It is difficult to compare unemployment rates across countries because methods of measuring unemployment are not standardized.

If the official unemployment rate increases in August from its July level, we can conclude that __________ unemployment is responsible for the increase.

If the expected inflation rate is high, the nominal interest rate will be low.

Unemployment arising from mismatch of skills is called

Demand-pull inflation is caused by an

Inflation is defined as a sustained increase in the price level.

Unanticipated inflation generally hurts borrowers and benefits lenders.

Most of the unemployment experienced in the United States during the Great Depression was

Inflation can be caused by

In the United States,

In periods of high inflation,

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

The Art and Science of Economic Analysis

Understanding Graphs-Appendix

Economic Tools and Economics Systems

Economic Decision Makers

Demand, Supply, and Markets

Introduction to Macroeconomics

Tracking the Us Economy

Productivity and Growth

Aaggregate Expenditure and Agregate Demand

Aggregate Expenditure and 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

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