Question 1

The textbook uses as its precise definition of hyperinflation an inflation rate

Accepted Answer

A)  below zero. 
B)  of less than one percent per year. 
C)  of more than one hundred percent per year. 
D)  of more than one thousand percent per year. 
E)  of more than fifty percent per month. 
A)  below zero. 
B)  of less than one percent per year. 
C)  of more than one hundred percent per year. 
D)  of more than one thousand percent per year. 
E)  of more than fifty percent per month.

Question 2

Investment and saving decisions are assumed by economists to depend on the ________ interest rate.

Accepted Answer

A)  expected nominal 
B)  nominal 
C)  expected real 
D)  real 
A)  expected nominal 
B)  nominal 
C)  expected real 
D)  real

Question 3

Inflation has no effect on an economy's well-being if

Accepted Answer

A)  it is universally and accurately anticipated. 
B)  relative prices are unaffected. 
C)  the nominal rate of interest for both savers and borrowers rises by an amount just equal to the rate of inflation. 
D)  all of these 
A)  it is universally and accurately anticipated. 
B)  relative prices are unaffected. 
C)  the nominal rate of interest for both savers and borrowers rises by an amount just equal to the rate of inflation. 
D)  all of these

Question 4

The expected real interest rate is equal to.

Accepted Answer

A)  the nominal interest rate minus the expected rate of inflation 
B)  the nominal interest rate plus the expected rate of inflation 
C)  the nominal interest rate minus the actual rate of inflation 
D)  the nominal interest rate plus the actual rate of inflation 
A)  the nominal interest rate minus the expected rate of inflation 
B)  the nominal interest rate plus the expected rate of inflation 
C)  the nominal interest rate minus the actual rate of inflation 
D)  the nominal interest rate plus the actual rate of inflation

Question 5

Applying elementary economics, mismatch unemployment should fall when relative wages

Accepted Answer

A)  rise. 
B)  fall. 
C)  are more flexible. 
D)  are less flexible. 
A)  rise. 
B)  fall. 
C)  are more flexible. 
D)  are less flexible.

Question 6

The natural rate of unemployment is that rate

Accepted Answer

A)  below which the economy can never be. 
B)  corresponding to full-employment. 
C)  corresponding to a constant rate of inflation. 
D)  which is zero. 
A)  below which the economy can never be. 
B)  corresponding to full-employment. 
C)  corresponding to a constant rate of inflation. 
D)  which is zero.

Question 7

Frictional unemployment is reduced by ________ in the number of weeks one is eligible for unemployment compensation, and ________ in the price of gasoline.

Accepted Answer

A)  an increase, an increase 
B)  an increase, a decrease 
C)  a decrease, an increase 
D)  a decrease, a decrease 
A)  an increase, an increase 
B)  an increase, a decrease 
C)  a decrease, an increase 
D)  a decrease, a decrease

Question 8

In the famous allegorical work The Wonderful Wizard of Oz, the symbol for William Jennings Bryant (one-time leader of the free-silver movement), was the

Accepted Answer

A)  Yellow brick road. 
B)  Scarecrow. 
C)  Lion. 
D)  dog named Toto. 
A)  Yellow brick road. 
B)  Scarecrow. 
C)  Lion. 
D)  dog named Toto.

Question 9

Who among the following is not frictionally unemployed?

Accepted Answer

A)  Andrew, a teenager who has just entered the labor market looking for his first part-time job 
B)  Barbara, who is re-entering the labor market after a divorce 
C)  Charles, who was laid off from his factory job but expects to be recalled in a few weeks 
D)  Diana, who has quit her job and is now looking for another 
A)  Andrew, a teenager who has just entered the labor market looking for his first part-time job 
B)  Barbara, who is re-entering the labor market after a divorce 
C)  Charles, who was laid off from his factory job but expects to be recalled in a few weeks 
D)  Diana, who has quit her job and is now looking for another

Question 10

Presidents running for re-election are tempted to urge the Federal Reserve to ________ the rate of money growth in order to reap the political benefits of ________.

Accepted Answer

A)  reduce, permanently lower inflation 
B)  reduce, temporarily lower inflation 
C)  increase, temporarily lower inflation 
D)  increase, temporarily higher real GDP 
E)  increase, permanently higher real GDP 
A)  reduce, permanently lower inflation 
B)  reduce, temporarily lower inflation 
C)  increase, temporarily lower inflation 
D)  increase, temporarily higher real GDP 
E)  increase, permanently higher real GDP

Question 11

Less-developed nations may have trouble with ________ financing of their deficits, and the only alternative creates the problem of ________.

Accepted Answer

A)  money, high inflation 
B)  money, indebtedness to foreign nations 
C)  bond, high inflation 
D)  bond, indebtedness to foreign nations 
A)  money, high inflation 
B)  money, indebtedness to foreign nations 
C)  bond, high inflation 
D)  bond, indebtedness to foreign nations

Question 12

In nations where conventional taxes are difficult to collect, the inflation tax is ________, which tends to ________ the inflation rates of those nations.

Accepted Answer

A)  also difficult to collect, aggravate 
B)  also difficult to collect, hold down 
C)  a realistic alternative, aggravate 
D)  a realistic alternative, hold down 
A)  also difficult to collect, aggravate 
B)  also difficult to collect, hold down 
C)  a realistic alternative, aggravate 
D)  a realistic alternative, hold down

Question 13

"Disgruntled" workers who quit their jobs to find "a more reasonable boss" are experiencing

Accepted Answer

A)  involuntarily unemployment. 
B)  mismatch unemployment. 
C)  cyclically unemployment. 
D)  turnover unemployment. 
A)  involuntarily unemployment. 
B)  mismatch unemployment. 
C)  cyclically unemployment. 
D)  turnover unemployment.

Question 14

"Turnover" unemployment is another name for ________ unemployment.

Accepted Answer

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

Question 15

Unemployment that results when individuals who have voluntarily quite their jobs are seeking jobs is called

Accepted Answer

A)  cyclical unemployment. 
B)  turnover unemployment. 
C)  mismatch unemployment. 
D)  natural unemployment. 
A)  cyclical unemployment. 
B)  turnover unemployment. 
C)  mismatch unemployment. 
D)  natural unemployment.

Question 16

Over a year, the money supply in a nation grew by 8 percent, while velocity rose by 2 percent and real GDP rose by 3 percent. This results in an inflation over the year of ________ percent.

Accepted Answer

A)  7 
B)  9 
C)  13 
D)  3 
A)  7 
B)  9 
C)  13 
D)  3

Question 17

The difference between actual and natural unemployment rates is called ________ unemployment.

Accepted Answer

A)  turnover 
B)  mismatch 
C)  cyclical 
D)  measured 
A)  turnover 
B)  mismatch 
C)  cyclical 
D)  measured

Question 18

Gordon recommends that government macroeconomic policymakers focus on

Accepted Answer

A)  reducing inflation to zero. 
B)  creating a national job finding service to reduce frictional unemployment to near zero. 
C)  creating "enterprise zones" to move jobs to areas of concentrated unemployment. 
D)  programs to match more closely the job skills of the unemployed to those of job vacancies. 
A)  reducing inflation to zero. 
B)  creating a national job finding service to reduce frictional unemployment to near zero. 
C)  creating "enterprise zones" to move jobs to areas of concentrated unemployment. 
D)  programs to match more closely the job skills of the unemployed to those of job vacancies.

Question 19

In recent years new automobile factories have opened in California and Ohio and closed in Detroit where the unemployment of automobile workers has increased. This unemployment could be decreased if

Accepted Answer

A)  "moving costs" from Detroit to California and Ohio were reduced. 
B)  information about the new jobs was made available to the unemployed workers at reduced cost. 
C)  workers with the appropriate skills were relatively scarce in Ohio and California. 
D)  all of the above. 
A)  "moving costs" from Detroit to California and Ohio were reduced. 
B)  information about the new jobs was made available to the unemployed workers at reduced cost. 
C)  workers with the appropriate skills were relatively scarce in Ohio and California. 
D)  all of the above.

Question 20

The best guess has turnover unemployment about ________ as mismatch unemployment.

Accepted Answer

A)  three times as large 
B)  twice as large 
C)  the same size 
D)  two-thirds as large 
E)  half as large 
A)  three times as large 
B)  twice as large 
C)  the same size 
D)  two-thirds as large 
E)  half as large

The textbook uses as its precise definition of hyperinflation an inflation rate

Investment and saving decisions are assumed by economists to depend on the ________ interest rate.

Inflation has no effect on an economy's well-being if

The expected real interest rate is equal to.

Applying elementary economics, mismatch unemployment should fall when relative wages

The natural rate of unemployment is that rate

Frictional unemployment is reduced by in the number of weeks one is eligible for unemployment compensation, and in the price of gasoline.

In the famous allegorical work The Wonderful Wizard of Oz, the symbol for William Jennings Bryant (one-time leader of the free-silver movement), was the

Who among the following is not frictionally unemployed?

Presidents running for re-election are tempted to urge the Federal Reserve to the rate of money growth in order to reap the political benefits of .

Less-developed nations may have trouble with financing of their deficits, and the only alternative creates the problem of .

In nations where conventional taxes are difficult to collect, the inflation tax is , which tends to the inflation rates of those nations.

"Disgruntled" workers who quit their jobs to find "a more reasonable boss" are experiencing

"Turnover" unemployment is another name for ________ unemployment.

Unemployment that results when individuals who have voluntarily quite their jobs are seeking jobs is called

Over a year, the money supply in a nation grew by 8 percent, while velocity rose by 2 percent and real GDP rose by 3 percent. This results in an inflation over the year of ________ percent.

The difference between actual and natural unemployment rates is called ________ unemployment.

Gordon recommends that government macroeconomic policymakers focus on

In recent years new automobile factories have opened in California and Ohio and closed in Detroit where the unemployment of automobile workers has increased. This unemployment could be decreased if

The best guess has turnover unemployment about ________ as mismatch unemployment.

What Is Macroeconomics

The Measurement of Income, Prices, and Unemployment

Spending, Income, and Interest Rates

Monetary and Fiscal Policy in the Is-Lm Model

The Government Budget, Foreign Borrowing, and the Twin Deficits

International Trade, Exchange Rates, and Macroeconomic Policy

Aggregate Demand, Aggregate Supply, and the Self-Correcting Economy

Inflation: Its Causes and Cures

The Theory of Economic Growth

The Big Questions of Economic Growth

The Government Budget, the Public Debt, and Social Security

Money and Financial Markets

Stabilization Policy in the Closed and Open Economy

The Economics of Consumption Behavior

The Economics of Investment Behavior

New Classical Macro Confronts New Keynesian Macro

Conclusion: Where We Stand

Filters

Exam 9: The Goals of Stabilization Policy: Low Inflation and Low Unemployment

The textbook uses as its precise definition of hyperinflation an inflation rate

Investment and saving decisions are assumed by economists to depend on the ________ interest rate.

Inflation has no effect on an economy's well-being if

The expected real interest rate is equal to.

Applying elementary economics, mismatch unemployment should fall when relative wages

The natural rate of unemployment is that rate

Frictional unemployment is reduced by ________ in the number of weeks one is eligible for unemployment compensation, and ________ in the price of gasoline.

In the famous allegorical work The Wonderful Wizard of Oz, the symbol for William Jennings Bryant (one-time leader of the free-silver movement), was the

Who among the following is not frictionally unemployed?

Presidents running for re-election are tempted to urge the Federal Reserve to ________ the rate of money growth in order to reap the political benefits of ________.

Less-developed nations may have trouble with ________ financing of their deficits, and the only alternative creates the problem of ________.

In nations where conventional taxes are difficult to collect, the inflation tax is ________, which tends to ________ the inflation rates of those nations.

"Disgruntled" workers who quit their jobs to find "a more reasonable boss" are experiencing

"Turnover" unemployment is another name for ________ unemployment.

Unemployment that results when individuals who have voluntarily quite their jobs are seeking jobs is called

Over a year, the money supply in a nation grew by 8 percent, while velocity rose by 2 percent and real GDP rose by 3 percent. This results in an inflation over the year of ________ percent.

The difference between actual and natural unemployment rates is called ________ unemployment.

Gordon recommends that government macroeconomic policymakers focus on

In recent years new automobile factories have opened in California and Ohio and closed in Detroit where the unemployment of automobile workers has increased. This unemployment could be decreased if

The best guess has turnover unemployment about ________ as mismatch unemployment.

What Is Macroeconomics

The Measurement of Income, Prices, and Unemployment

Spending, Income, and Interest Rates

Monetary and Fiscal Policy in the Is-Lm Model

The Government Budget, Foreign Borrowing, and the Twin Deficits

International Trade, Exchange Rates, and Macroeconomic Policy

Aggregate Demand, Aggregate Supply, and the Self-Correcting Economy

Inflation: Its Causes and Cures

The Theory of Economic Growth

The Big Questions of Economic Growth

The Government Budget, the Public Debt, and Social Security

Money and Financial Markets

Stabilization Policy in the Closed and Open Economy

The Economics of Consumption Behavior

The Economics of Investment Behavior

New Classical Macro Confronts New Keynesian Macro

Conclusion: Where We Stand

Filters

Frictional unemployment is reduced by in the number of weeks one is eligible for unemployment compensation, and in the price of gasoline.

Presidents running for re-election are tempted to urge the Federal Reserve to the rate of money growth in order to reap the political benefits of .

Less-developed nations may have trouble with financing of their deficits, and the only alternative creates the problem of .

In nations where conventional taxes are difficult to collect, the inflation tax is , which tends to the inflation rates of those nations.