Question 1

Last month Brent lost his job at the auto parts factory because the factory relocated to Asia. Brent and his former coworkers have been looking for similar jobs, but they have found no openings. In Brent's town the _____ labor has _____.

Accepted Answer

A)   supply of; fallen
B)   supply of; risen
C)   demand for; risen
D)   demand for; fallen

Question 2

The U.S. inflation rate was higher in the 2000s than it was in the 1970s.

Accepted Answer

A) True 
 B)False

Question 3

The severe inflation in Israel during the mid-1980s was due to a war, an unstable government, and civil unrest in the country.

Accepted Answer

A) True 
 B)False

Question 4

Unemployment rates are usually highest for:

Accepted Answer

A)   white teenagers.
B)   African American teenagers.
C)   male workers aged 25 to 54.
D)   female workers aged 25 to 54.

Question 5

If a country has a working-age population of 200 million, 135 million people with jobs, and 15 million people unemployed and seeking employment, then its unemployment rate is:

Accepted Answer

A)   4%.
B)   7.5%.
C)   10%.
D)   67.5%.

Question 6

The natural rate of unemployment is:

Accepted Answer

A)   the rate during recessions.
B)   equal to the sum of frictional and cyclical unemployment.
C)   equal to the sum of frictional and structural unemployment.
D)   cyclical unemployment less frictional unemployment.

Question 7

If the U.S. dollar were replaced with a "new dollar" at an exchange rate of 1 new dollar for 8 old dollars, then a mortgage of $100,000 would become a debt of _____ new dollars.

Accepted Answer

A)   12,500
B)   99,992
C)   100,000
D)   800,000

Question 8

If the price level at the end of year 1 is 150 and the price level at the end of year 2 is 160, the inflation rate in year 2 is 10%.

Accepted Answer

A) True 
 B)False

Question 9

A survey reveals that on a small island 100 people have jobs, 25 people are not working but are looking for jobs, and 45 people are neither working nor looking for work. The unemployment rate on the island is:

Accepted Answer

A)   12.5%.
B)   20%.
C)   25%.
D)   50%.

Question 10

The unemployment rate is the:

Accepted Answer

A)   percent of the labor force that is unemployed.
B)   number of people unemployed.
C)   the labor force minus the number of people unemployed.
D)   average length of time someone is unemployed.

Question 11

The unemployment rate is the ratio of all of the people:

Accepted Answer

A)   out of work to the total population.
B)   out of work to those over age 16.
C)   unemployed to those looking for work.
D)   unemployed to those in the labor force.

Question 12

Real income is income divided by the price level.

Accepted Answer

A) True 
 B)False

Question 13

Suppose that Allison has an accounting degree, but she lost her job two months ago when her company merged with another firm. Allison hasn't been able to find another accounting job, so she has taken a part-time job as a sales clerk at a clothing store. As a result the official unemployment rate will:

Accepted Answer

A)   not change.
B)   increase.
C)   decrease.
D)   increase temporarily, then fall back to its original level.

Question 14

When the unemployment rate increased, the annual growth rate of real GDP has usually:

Accepted Answer

A)   increased.
B)   decreased.
C)   not changed.
D)   shown no relationship with changes in the unemployment rate.

Question 15

Generous unemployment benefits are likely to cause:

Accepted Answer

A)   an increase in the employment level.
B)   a reduction in job search time.
C)   a decrease in the unemployment rate.
D)   an increase in the unemployment rate.

Question 16

Discouraged workers:

Accepted Answer

A)   are getting paid too little.
B)   do not like their job.
C)   are working part-time but are looking for a full-time job.
D)   have given up looking for a job.

Question 17

Use the following to answer questions 
-(Table: Labor Force Distribution)  Look at the table Labor Force Distribution. The total population is:

Accepted Answer

A)   486 million.
B)   253 million.
C)   278 million.
D)   283 million.

Question 18

The natural rate of unemployment:

Accepted Answer

A)   is composed of frictional, structural, and cyclical unemployment.
B)   is equal to zero.
C)   is always greater than the actual unemployment rate.
D)   is composed of structural and frictional unemployment.

Question 19

Both binding minimum wages and union wages may cause structural unemployment.

Accepted Answer

A) True 
 B)False

Question 20

According to the Congressional Budget Office, the natural rate of unemployment:

Accepted Answer

A)   has continually declined since 1950.
B)   was at its lowest by the end of the 1970s.
C)   has continually risen since 1950.
D)   rose until the end of the 1970s and has declined since then.

Exam 22: Unemployment and Inflation

A survey reveals that on a small island 100 people have jobs, 25 people are not working but are looking for jobs, and 45 people are neither working nor looking for work. The unemployment rate on the island is:

Correct Answer
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Correct Answer
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When the unemployment rate increased, the annual growth rate of real GDP has usually:

Correct Answer
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If the U.S. dollar were replaced with a "new dollar" at an exchange rate of 1 new dollar for 8 old dollars, then a mortgage of $100,000 would become a debt of _____ new dollars.

Correct Answer
verified

If the price level at the end of year 1 is 150 and the price level at the end of year 2 is 160, the inflation rate in year 2 is 10%.

Correct Answer
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The natural rate of unemployment:

Correct Answer
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The unemployment rate is the ratio of all of the people:

Correct Answer
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Discouraged workers:

Correct Answer
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If a country has a working-age population of 200 million, 135 million people with jobs, and 15 million people unemployed and seeking employment, then its unemployment rate is:

Correct Answer
verified

Generous unemployment benefits are likely to cause:

Correct Answer
verified

According to the Congressional Budget Office, the natural rate of unemployment:

Correct Answer
verified

The severe inflation in Israel during the mid-1980s was due to a war, an unstable government, and civil unrest in the country.

Correct Answer
verified

The unemployment rate is the:

Correct Answer
verified

Use the following to answer questions -(Table: Labor Force Distribution) Look at the table Labor Force Distribution. The total population is:

Correct Answer
verified

Both binding minimum wages and union wages may cause structural unemployment.

Correct Answer
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The natural rate of unemployment is:

Correct Answer
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Real income is income divided by the price level.

Correct Answer
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The U.S. inflation rate was higher in the 2000s than it was in the 1970s.

Correct Answer
verified

Last month Brent lost his job at the auto parts factory because the factory relocated to Asia. Brent and his former coworkers have been looking for similar jobs, but they have found no openings. In Brent's town the _ labor has _.

Correct Answer
verified

Unemployment rates are usually highest for:

Correct Answer
verified

Exam 22: Unemployment and Inflation

A survey reveals that on a small island 100 people have jobs, 25 people are not working but are looking for jobs, and 45 people are neither working nor looking for work. The unemployment rate on the island is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When the unemployment rate increased, the annual growth rate of real GDP has usually:

Correct AnswerverifiedShow Answer

If the U.S. dollar were replaced with a "new dollar" at an exchange rate of 1 new dollar for 8 old dollars, then a mortgage of $100,000 would become a debt of _____ new dollars.

Correct AnswerverifiedShow Answer

If the price level at the end of year 1 is 150 and the price level at the end of year 2 is 160, the inflation rate in year 2 is 10%.

Correct AnswerverifiedShow Answer

The natural rate of unemployment:

Correct AnswerverifiedShow Answer

The unemployment rate is the ratio of all of the people:

Correct AnswerverifiedShow Answer

Discouraged workers:

Correct AnswerverifiedShow Answer

If a country has a working-age population of 200 million, 135 million people with jobs, and 15 million people unemployed and seeking employment, then its unemployment rate is:

Correct AnswerverifiedShow Answer

Generous unemployment benefits are likely to cause:

Correct AnswerverifiedShow Answer

According to the Congressional Budget Office, the natural rate of unemployment:

Correct AnswerverifiedShow Answer

The severe inflation in Israel during the mid-1980s was due to a war, an unstable government, and civil unrest in the country.

Correct AnswerverifiedShow Answer

The unemployment rate is the:

Correct AnswerverifiedShow Answer

Use the following to answer questions -(Table: Labor Force Distribution) Look at the table Labor Force Distribution. The total population is:

Correct AnswerverifiedShow Answer

Both binding minimum wages and union wages may cause structural unemployment.

Correct AnswerverifiedShow Answer

The natural rate of unemployment is:

Correct AnswerverifiedShow Answer

Real income is income divided by the price level.

Correct AnswerverifiedShow Answer

The U.S. inflation rate was higher in the 2000s than it was in the 1970s.

Correct AnswerverifiedShow Answer

Last month Brent lost his job at the auto parts factory because the factory relocated to Asia. Brent and his former coworkers have been looking for similar jobs, but they have found no openings. In Brent's town the _____ labor has _____.

Correct AnswerverifiedShow Answer

Unemployment rates are usually highest for:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Last month Brent lost his job at the auto parts factory because the factory relocated to Asia. Brent and his former coworkers have been looking for similar jobs, but they have found no openings. In Brent's town the _ labor has _.

Correct Answer
verified

Correct Answer
verified