Question 1

The total labor force consists of:

Accepted Answer

A) the entire population. 
B) the population over the age of sixteen. 
C) the number of employed persons. 
D) the number of employed persons plus the number of unemployed persons. 
A) the entire population. 
B) the population over the age of sixteen. 
C) the number of employed persons. 
D) the number of employed persons plus the number of unemployed persons.

Question 2

If the economy is operating at the natural rate of unemployment, which of the following is essentially eliminated?

Accepted Answer

A) frictional unemployment 
B) structural unemployment 
C) cyclical unemployment 
D) all of the above 
A) frictional unemployment 
B) structural unemployment 
C) cyclical unemployment 
D) all of the above

Question 3

In the unemployment rate, part-time workers are:

Accepted Answer

A) not included in the labor force. 
B) included in the labor force, but counted as unemployed. 
C) treated the same way as discouraged workers. 
D) included in the labor force and counted as employed. 
E) treated as employed if they report that they desire to have a part-time job, but treated as unemployed if they report that they wish to have a full-time job instead. 
A) not included in the labor force. 
B) included in the labor force, but counted as unemployed. 
C) treated the same way as discouraged workers. 
D) included in the labor force and counted as employed. 
E) treated as employed if they report that they desire to have a part-time job, but treated as unemployed if they report that they wish to have a full-time job instead.

Question 4

Cyclical unemployment rises and falls with fluctuations in the macroeconomy.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following people is structurally unemployed?

Accepted Answer

A) Brendan left his job as a short-order cook in New Jersey to become a short-order cook in Madrid, New Mexico. He was unemployed for six weeks during the transition. 
B) Mildred quit her job after giving birth to a child. 
C) Clem, a skilled corset maker, lost his job when his factory shut down due to a permanent reduction in the demand for corsets. 
D) Danielle lost her job when the electronics assembly plant was shut down temporarily due to low product sales in a slumping economy. 
E) John reduces his work hours as a furnace repairman in order to pursue a college education. 
A) Brendan left his job as a short-order cook in New Jersey to become a short-order cook in Madrid, New Mexico. He was unemployed for six weeks during the transition. 
B) Mildred quit her job after giving birth to a child. 
C) Clem, a skilled corset maker, lost his job when his factory shut down due to a permanent reduction in the demand for corsets. 
D) Danielle lost her job when the electronics assembly plant was shut down temporarily due to low product sales in a slumping economy. 
E) John reduces his work hours as a furnace repairman in order to pursue a college education.

Question 6

Explain how the use of leading economic indicators to predict recessions can lead to less accurate policy decisions.

Accepted Answer

The use of leading economic indicators t

Question 7

The term full employment implies an unemployment rate of:

Accepted Answer

A) zero 
B) approximately 5% 
C) approximately 10% 
D) 100% 
A) zero 
B) approximately 5% 
C) approximately 10% 
D) 100%

Question 8

Structural unemployment occurs when:

Accepted Answer

A) automation reduces the need for welders in Detroit. 
B) frictional unemployment exceeds 5 percent of the labor force. 
C) steelworkers are laid off due to a downturn in the economy. 
D) a person leaves a job to seek a better position and can't find the job he or she wants. 
A) automation reduces the need for welders in Detroit. 
B) frictional unemployment exceeds 5 percent of the labor force. 
C) steelworkers are laid off due to a downturn in the economy. 
D) a person leaves a job to seek a better position and can't find the job he or she wants.

Question 9

The information below describes the real GDP per capita for the country of Bedrock for the period of 1975 to 1991.
a.If a new business cycle began in 1975, how long was this cycle?
b.The peak occurred in which year? The trough occurred in which year?
c.How long was the expansion? How long was the contraction?
 $$\begin{array} { | c | c | } 
\hline \text { Year } & \text { Real GDP per Capit-a } \
\hline 1975 & 6,000 \
\hline 1976 & 6,300 \
\hline 1977 & 6,700 \
\hline 1978 & 7,200 \
\hline 1979 & 7,850 \
\hline 1980 & \mathbf { 8 , 2 5 0 } \
\hline 1981 & \mathbf { 8 , 4 5 0 } \
\hline 1982 & \mathbf { 8 , 5 5 0 } \
\hline 1983 & \mathbf { 8 } , 575 \
\hline 1984 & \mathbf { 8 } , 510 \
\hline 1985 & \mathbf { 8 } , 370 \
\hline 1980 & \mathbf { 8 } , 100 \
\hline 1987 & 7,950 \
\hline 1988 & 7,925 \
\hline 1989 & 7,960 \
\hline 1990 & \mathbf { 8 } , 035 \
\hline 1991 & \mathbf { 8 } , 155 \
\hline
\end{array}$$

Accepted Answer

@#IMG-DLM& a.14 year

Question 10

Unanticipated inflation will benefit creditors at the expense of debtors.

Accepted Answer

A) True 
 B)False

Question 11

A federal program aimed at retraining the unemployed workers of the declining auto and steel industries is designed to reduce which type of unemployment?

Accepted Answer

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

Question 12

____ experience lower rates of unemployment than do ____.

Accepted Answer

A) High school graduates; college graduates 
B) College graduates; high school graduates 
C) Adult females; adult males 
D) Black males; white males 
A) High school graduates; college graduates 
B) College graduates; high school graduates 
C) Adult females; adult males 
D) Black males; white males

Question 13

Cyclical unemployment arises when:

Accepted Answer

A) business activity in the macroeconomy declines. 
B) the business cycle enters an expansionary phase. 
C) labor unions strike for higher wages. 
D) the agriculture sector completes the cycle of planting, cultivating, and harvesting the nation's food supply. 
A) business activity in the macroeconomy declines. 
B) the business cycle enters an expansionary phase. 
C) labor unions strike for higher wages. 
D) the agriculture sector completes the cycle of planting, cultivating, and harvesting the nation's food supply.

Question 14

Nearly every society desires to achieve the macroeconomic goals of high employment, a stable price level, and high economic growth.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

If professors lose their positions at universities because of the widespread introduction of courses over the internet, faculty members that remained unemployed would be considered:

Accepted Answer

A) frictionally unemployed. 
B) underemployed. 
C) cyclically unemployed. 
D) structurally unemployed. 
E) a discouraged worker. 
A) frictionally unemployed. 
B) underemployed. 
C) cyclically unemployed. 
D) structurally unemployed. 
E) a discouraged worker.

Question 17

Which of the following statements is incorrect?

Accepted Answer

A) Job losers typically account for 50 to 60 percent of the unemployed. 
B) Unemployment rates in the United States during the Great Depression exceeded 50 percent. 
C) The labor force participation rate is the percentage of the population that is in the labor force. 
D) The increase in the labor force participation rate since 1950 can be partly attributed to the entry of baby boomers into the labor force. 
A) Job losers typically account for 50 to 60 percent of the unemployed. 
B) Unemployment rates in the United States during the Great Depression exceeded 50 percent. 
C) The labor force participation rate is the percentage of the population that is in the labor force. 
D) The increase in the labor force participation rate since 1950 can be partly attributed to the entry of baby boomers into the labor force.

Question 18

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

Accepted Answer

The four phases of the business cycle ar

Question 19

If the numbers of employed and unemployed do not change but the size of the population increases by 10%, what would be the effect?

Accepted Answer

A) an increase in the unemployment rate and an increase in the labor force participation rate 
B) an increase in the unemployment rate and no change in the labor force participation rate 
C) an increase in the unemployment rate and a decrease in the labor force participation rate 
D) no change in the unemployment rate and a decrease in the labor force participation rate 
A) an increase in the unemployment rate and an increase in the labor force participation rate 
B) an increase in the unemployment rate and no change in the labor force participation rate 
C) an increase in the unemployment rate and a decrease in the labor force participation rate 
D) no change in the unemployment rate and a decrease in the labor force participation rate

Question 20

Based on the following table for stadium concession, what would the price index equal in 2012? $$\begin{array} { c c c } 
&\text { HOt Dog } & \text { Soft DrinK } & \text { Pragram } \
2010&\$ 5.00 & \$ 4.00 & \$ 8.00 \
2011&\$ 5.50 & \$ 4.75 & \$ 9.00 \
2012&\$ 6.00 & \$ 5.50 & \$ 10.00
\end{array}$$

Accepted Answer

A) 79.1 
B) 88.3 
C) 101.3 
D) 113.2 
E) 126.5 
A) 79.1 
B) 88.3 
C) 101.3 
D) 113.2 
E) 126.5

The total labor force consists of:

If the economy is operating at the natural rate of unemployment, which of the following is essentially eliminated?

In the unemployment rate, part-time workers are:

Cyclical unemployment rises and falls with fluctuations in the macroeconomy.

Which of the following people is structurally unemployed?

Explain how the use of leading economic indicators to predict recessions can lead to less accurate policy decisions.

The term full employment implies an unemployment rate of:

Structural unemployment occurs when:

Unanticipated inflation will benefit creditors at the expense of debtors.

A federal program aimed at retraining the unemployed workers of the declining auto and steel industries is designed to reduce which type of unemployment?

experience lower rates of unemployment than do .

Cyclical unemployment arises when:

Nearly every society desires to achieve the macroeconomic goals of high employment, a stable price level, and high economic growth.

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

If professors lose their positions at universities because of the widespread introduction of courses over the internet, faculty members that remained unemployed would be considered:

Which of the following statements is incorrect?

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

If the numbers of employed and unemployed do not change but the size of the population increases by 10%, what would be the effect?

Based on the following table for stadium concession, what would the price index equal in 2012? HOt Dog Soft DrinK Pragram 2010 \ 5.00 \ 4.00 \ 8.00 2011 \ 5.50 \ 4.75 \ 9.00 2012 \ 6.00 \ 5.50 \ 10.00

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

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

The total labor force consists of:

If the economy is operating at the natural rate of unemployment, which of the following is essentially eliminated?

In the unemployment rate, part-time workers are:

Cyclical unemployment rises and falls with fluctuations in the macroeconomy.

Which of the following people is structurally unemployed?

Explain how the use of leading economic indicators to predict recessions can lead to less accurate policy decisions.

The term full employment implies an unemployment rate of:

Structural unemployment occurs when:

Unanticipated inflation will benefit creditors at the expense of debtors.

A federal program aimed at retraining the unemployed workers of the declining auto and steel industries is designed to reduce which type of unemployment?

____ experience lower rates of unemployment than do ____.

Cyclical unemployment arises when:

Nearly every society desires to achieve the macroeconomic goals of high employment, a stable price level, and high economic growth.

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

If professors lose their positions at universities because of the widespread introduction of courses over the internet, faculty members that remained unemployed would be considered:

Which of the following statements is incorrect?

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

If the numbers of employed and unemployed do not change but the size of the population increases by 10%, what would be the effect?

Based on the following table for stadium concession, what would the price index equal in 2012? HOt Dog Soft DrinK Pragram 2010 \ 5.00 \ 4.00 \ 8.00 2011 \ 5.50 \ 4.75 \ 9.00 2012 \ 6.00 \ 5.50 \ 10.00

The Role and Method of Economics

The Economic Way of Thinking

Supply and Demand

Using Supply and Demand

Market Failure and Public Choice

Production and Costs

Firms in Competitive Markets

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets, Income Distribution, and Poverty

Economic Growth

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Institutions

The Federal Reserve System and Monetary Policy

Issues in Macroeconomic Theory and Policy

International Economics

Filters

experience lower rates of unemployment than do .