Exam 13: The Labor Market in the Macroeconomy

Refer to the information provided in Figure 13.7 below to answer the questions that follow. Figure 13.7 -Refer to Figure 13.7. If the economy is at Point A, a sudden decrease in the price of oil without any change in the aggregate demand shifts the short-run Phillips curve (SRPC) from

According to classical economists, ________ unemployment does not persist in the economy because wages will always adjust to ensure equilibrium in the labor market.

Those who believe that wages adjust ________ to clear the labor market also believe that the ________ curve is vertical.

To be unemployed, a person must be without a job and actively looking for work.

According to the ________ economists, those who are not working have chosen not to work at the market wage.

Refer to the information provided in Figure 13.7 below to answer the questions that follow. Figure 13.7 -Refer to Figure 13.7. The unemployment rate at U₁

Refer to the information provided in Figure 13.8 below to answer the questions that follow. Figure 13.8 -Refer to Figure 13.8. Expected inflation at Point D ________ expected inflation at Point C.

Refer to the information provided in Figure 13.6 below to answer the questions that follow. Figure 13.6 -Refer to Figure 13.6. Panel B represents the typical shape of the

Refer to the information provided in Figure 13.1 below to answer the questions that follow. Figure 13.1 -Refer to Figure 13.1. At a wage rate of $________, there is a surplus of labor equal to ________ million people.

Workers in the textile industry are laid off during a recession because they are unwilling to accept a wage cut, unless they know that workers in other industries are receiving similar cuts. This example is consistent with the

Classical economists believe that the absence of sticky wages results in a vertical aggregate supply curve.

The type of unemployment that arises during recessions is known as

Refer to the information provided in Figure 13.7 below to answer the questions that follow. Figure 13.7 -Refer to Figure 13.7. The natural rate of unemployment occurs at

The ________ contributes to a ________ unemployment rate among teenaged workers.

According to the ________ explanation of unemployment, workers will be willing to accept wage cuts only if they know that workers in other firms and industries are receiving similar cuts.

Refer to the information provided in Figure 13.7 below to answer the questions that follow. Figure 13.7 -Refer to Figure 13.7. If the economy is at Point A, a sudden increase in the price of oil without any change in the aggregate demand shifts the short-run Phillips curve (SRPC) from

Suppose the equilibrium wage rate in the labor market is $20 and the demand for labor decreases. If wages are sticky, there will be a

Changes in the price level don't affect the unemployment rate if

As the unemployment rate decreases in response to the economy moving toward capacity output, the aggregate price level

If wages are sticky, a decrease in labor