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

In the nineteenth century, U.S. farmers were ordinarily debtors. Farmers typically borrowed from banks to develop new acreage and to be able to purchase necessary inputs prior to each growing season. Why did farmers generally support public policies that were inflationary?

If the nominal interest rate is 6% and the inflation rate is 3%, the real interest rate is _____.

Bill looked for work for six months but could not find a job he wanted. It has now been almost five months since he stopped looking for a job. In the context of employment, he is considered to be:

The continuing rise in the overall price level is called _____.

The figure below shows the total adult population in an economy and the number of civilians who are employed and unemployed. Based on the figure, the number of people considered to be out of the labor force is _____.Figure 11-1

The term full employment implies an unemployment rate of:

Which of the following statements is correct?

A city in which 320,000 persons are employed has a labor force of 359,500 persons. The unemployment rate for the city is:

If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor, _____.​

If firms pay employees an efficiency wage, _____.

The cost of unemployment to society includes the loss of the goods and services that might have been produced if the unemployed had been employed.

A welder who quits his job and moves from Houston to Buffalo, where welding jobs are available, would be facing _____.

Cyclical unemployment rises and falls with fluctuations in the macro economy.

Underemployment occurs when:

The unemployment rate is calculated as the number of people officially unemployed divided by:

People who settle for part-time jobs are officially considered to be unemployed.

Which of the following individuals are considered officially unemployed?

If postal workers lose their positions because of widespread e-mailing, texting, and faxing, and they cannot find alternative jobs using their existing skills, these individuals would most likely be considered:

Suppose you live in a community of 100 people where everyone who is able to do so seeks work. If 80 people are over 16 years old and 72 of them are employed, what is the unemployment rate in this community?

Discuss the costs associated with high inflation.