Exam 11: Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations

The figure below shows the total adult population and the number of employed and unemployed civilians in the economy. Based on the figure, the unemployment rate is approximately _____.Figure 11-1

Which of the following statements is incorrect?

Unemployment rises and falls in the same direction as output over the business cycle.

Which of the following people is most likely to be structurally unemployed?

When unemployment rises above the natural rate, it reflects the existence of _____.

What are the four phases of the classical business cycle and how is employment typically affected during each phase?

The table below shows the prices of three consumer goods in three years, respectively: 2010, 2011, and 2012. 2010 is assumed to be the base year. Based on the table, the price index in 2012 is _____.Table 11-1

The natural rate of unemployment can change over time as technological, demographic, institutional, and other conditions vary.

If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons in the population aged 16 and older equals 40 million, the unemployment rate equals:

The inflation rate rose from 3 percent to 20 percent during the Great Depression.

Economists believe that the Consumer Price Index tends to understate the actual rate of inflation.

New inventions may displace some workers, resulting in structural unemployment.

If the number of employed people equals 185 million, the number of unemployed people equals 15 million, and the number of people in the population aged 16 and older equals 210 million, then:

In the 1970s, savings and loan associations primarily earned their income from extending fixed-rate home loans. They extended many of these loans in the early 1970s when inflation was low. Were the savings and loan associations winners or losers as inflation skyrocketed in the late 1970s?

A federal program aimed at retraining the unemployed workers of the declining auto and steel industries is designed to reduce _____.

In the expansion phase of the business cycle, _____.

If the number of officially employed and officially unemployed people do not change but the size of the population increases by 10%, there will be _____.

Who among the following will be most affected by an unexpected increase in inflation?

The current cost of a market basket of goods is $9,000. The cost of the same basket of goods in the base year was $3,000. The current price index is:

Which of the following is true of unemployment insurance?