Question 1

Most of the unemployment that occurred during the Great Depression was

Accepted Answer

A)   frictional unemployment.
B)   structural unemployment.
C)   cyclical unemployment.
D)   core unemployment.E) B) and C)
F) C) and D)

Question 2

The CPI is also referred to as

Accepted Answer

A)   the GDP deflator.
B)   the inflation-consumption index.
C)   the cost-of-living index.
D)   the producer price index.E) A) and D)
F) All of the above

Question 3

In 2017, Boeing announced that it was laying off 1,800 employees in addition to the 7,000 workers it had cut the year before. The laid-off employees who were eventually able to find jobs at another aircraft manufacturer such as Airbus or Bombardier would have been considered ________ during the time they were out of work.

Accepted Answer

A)   structurally unemployed
B)   frictionally unemployed
C)   seasonally unemployed
D)   cyclically unemployedE) B) and D)
F) B) and C)

Question 4

Workers laid off as a result of a recession suffer

Accepted Answer

A)   frictional unemployment.
B)   structural unemployment.
C)   cyclical unemployment.
D)   seasonal unemployment.E) A) and C)
F) All of the above

Question 5

The nominal interest rate plus the inflation rate equals the real interest rate.

Accepted Answer

A) True 
 B)False

Question 6

Explain why you would rather be a borrower during a period of unexpected rising inflation, and a lender during a period of unexpected declining inflation.

Accepted Answer

The nominal interest rate includes a cha...

Question 7

Table 20-12
 
-Refer to Table 20-12. Consider a simple economy that produces only three products: burritos, flashlights, and golf balls. Use the information in the table to calculate the inflation rate for 2018, as measured by the consumer price index.

Accepted Answer

Total expenditures for 2001 = (10 × $1.0...

Question 8

Most economists believe that biases cause changes in the CPI to overstate the inflation rate by ________ percentage points.

Accepted Answer

A)   0.1 to 0.2
B)   0.2 to 2.0
C)   0.4
D)   0.5 to 1.0
E)   1.0 to 3.0F) All of the above
G) B) and E)

Question 9

The full-employment rate of unemployment is zero.

Accepted Answer

A) True 
 B)False

Question 10

Jack just received a promotion at work and now works 50 hours per week instead of 35. As a result,

Accepted Answer

A)   the unemployment rate increased.
B)   the unemployment rate decreased.
C)   the labor force participation rate increased.
D)   neither the unemployment rate nor the labor force participation rate changed.E) A) and C)
F) C) and D)

Question 11

Which of the following statements is true about the U.S. economy?

Accepted Answer

A)   Each year, many new jobs are created, but few existing jobs are destroyed, and the unemployed find jobs quickly.
B)   Each year, few new jobs are created, but few existing jobs are destroyed, keeping unemployment low.
C)   Each year, many new jobs are created and many existing jobs are destroyed.
D)   Each year few jobs are created, and therefore it takes the unemployed a long time to find a new job.E) None of the above
F) All of the above

Question 12

The inflation rate measures the average prices of goods and services in the economy.

Accepted Answer

A) True 
 B)False

Question 13

Table 20-22
 
-Refer to Table 20-22. Using the above table, calculate real average hourly earnings for 2016, 2017, and 2018. Calculate the rate of growth of real average hourly earnings from 2017 to 2018.

Accepted Answer

Real average hourly earnings in 2016 are...

Question 14

We say that the economy is at full employment if the unemployment rate is equal to

Accepted Answer

A)   zero.
B)   the natural rate of unemployment.
C)   the amount of cyclical unemployment.
D)   the sum of frictional and cyclical unemployment.
E)   the sum of structural and cyclical unemployment.F) C) and D)
G) A) and B)

Question 15

The GDP deflator is the best measure that reflects the prices of goods and services purchased by the typical household.

Accepted Answer

A) True 
 B)False

Question 16

The formula for calculating the CPI is

Accepted Answer

A)   (Expenditures in the current year/Expenditures in the base year)  × 100.
B)   (Expenditures in the current year × Expenditures in the base year) /100.
C)   (Expenditures in the base year/Expenditures in the current year) .
D)   (Expenditures in the base year × 100) /(Expenditures in the current year) .E) A) and B)
F) B) and C)

Question 17

The labor force participation rate equals the

Accepted Answer

A)   (number of employed divided by the labor force)  × 100.
B)   (labor force divided by the number of people not in the labor force)  × 100.
C)   (labor force divided by working-age population)  × 100.
D)   (labor force divided by the total population)  × 100.E) A) and C)
F) All of the above

Question 18

If cyclical unemployment is eliminated in the economy, then

Accepted Answer

A)   the economy is considered to be at full employment.
B)   the unemployment rate is below the natural rate of unemployment.
C)   the unemployment rate is above the natural rate of unemployment.
D)   the economy is at less than full employment.E) A) and B)
F) A) and C)

Question 19

Which of the following describes actual trends in the U.S. labor force participation rate?

Accepted Answer

A)   The labor force participation rate of adult men has risen since 1950.
B)   The labor force participation rate of adult women has fallen since 1950.
C)   The labor force participation rate of adult men not in school, but too young to retire has risen since 1950.
D)   The labor force participation rate of adult women has risen since 1950.
E)   The labor force participation rate of all adults has fallen since 1950.F) All of the above
G) B) and E)

Question 20

If the CPI falls from 142 to 140 between two consecutive years, this implies that prices fell by 2% between those two years.

Accepted Answer

A) True 
 B)False

Exam 20: Unemployment and Inflation

Most of the unemployment that occurred during the Great Depression was

Correct Answer
verified

Explain why you would rather be a borrower during a period of unexpected rising inflation, and a lender during a period of unexpected declining inflation.

Correct Answer
verified
The nominal interest rate includes a cha...
View Answer

The nominal interest rate plus the inflation rate equals the real interest rate.

Correct Answer
verified

Table 20-22 -Refer to Table 20-22. Using the above table, calculate real average hourly earnings for 2016, 2017, and 2018. Calculate the rate of growth of real average hourly earnings from 2017 to 2018.

Correct Answer
verified
Real average hourly earnings in 2016 are...
View Answer

If cyclical unemployment is eliminated in the economy, then

Correct Answer
verified

We say that the economy is at full employment if the unemployment rate is equal to

Correct Answer
verified

The inflation rate measures the average prices of goods and services in the economy.

Correct Answer
verified

Which of the following statements is true about the U.S. economy?

Correct Answer
verified

Correct Answer
verified

If the CPI falls from 142 to 140 between two consecutive years, this implies that prices fell by 2% between those two years.

Correct Answer
verified

Jack just received a promotion at work and now works 50 hours per week instead of 35. As a result,

Correct Answer
verified

Most economists believe that biases cause changes in the CPI to overstate the inflation rate by ________ percentage points.

Correct Answer
verified

Table 20-12 -Refer to Table 20-12. Consider a simple economy that produces only three products: burritos, flashlights, and golf balls. Use the information in the table to calculate the inflation rate for 2018, as measured by the consumer price index.

Correct Answer
verified
Total expenditures for 2001 = (10 × $1.0...
View Answer

Which of the following describes actual trends in the U.S. labor force participation rate?

Correct Answer
verified

The full-employment rate of unemployment is zero.

Correct Answer
verified

The formula for calculating the CPI is

Correct Answer
verified

The CPI is also referred to as

Correct Answer
verified

The labor force participation rate equals the

Correct Answer
verified

The GDP deflator is the best measure that reflects the prices of goods and services purchased by the typical household.

Correct Answer
verified

Workers laid off as a result of a recession suffer

Correct Answer
verified

Exam 20: Unemployment and Inflation

Most of the unemployment that occurred during the Great Depression was

Correct AnswerverifiedShow Answer

Explain why you would rather be a borrower during a period of unexpected rising inflation, and a lender during a period of unexpected declining inflation.

Correct AnswerverifiedThe nominal interest rate includes a cha...View AnswerShow Answer

The nominal interest rate plus the inflation rate equals the real interest rate.

Correct AnswerverifiedShow Answer

Table 20-22 -Refer to Table 20-22. Using the above table, calculate real average hourly earnings for 2016, 2017, and 2018. Calculate the rate of growth of real average hourly earnings from 2017 to 2018.

Correct AnswerverifiedReal average hourly earnings in 2016 are...View AnswerShow Answer

If cyclical unemployment is eliminated in the economy, then

Correct AnswerverifiedShow Answer

We say that the economy is at full employment if the unemployment rate is equal to

Correct AnswerverifiedShow Answer

The inflation rate measures the average prices of goods and services in the economy.

Correct AnswerverifiedShow Answer

Which of the following statements is true about the U.S. economy?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

If the CPI falls from 142 to 140 between two consecutive years, this implies that prices fell by 2% between those two years.

Correct AnswerverifiedShow Answer

Jack just received a promotion at work and now works 50 hours per week instead of 35. As a result,

Correct AnswerverifiedShow Answer

Most economists believe that biases cause changes in the CPI to overstate the inflation rate by ________ percentage points.

Correct AnswerverifiedShow Answer

Table 20-12 -Refer to Table 20-12. Consider a simple economy that produces only three products: burritos, flashlights, and golf balls. Use the information in the table to calculate the inflation rate for 2018, as measured by the consumer price index.

Correct AnswerverifiedTotal expenditures for 2001 = (10 × $1.0...View AnswerShow Answer

Which of the following describes actual trends in the U.S. labor force participation rate?

Correct AnswerverifiedShow Answer

The full-employment rate of unemployment is zero.

Correct AnswerverifiedShow Answer

The formula for calculating the CPI is

Correct AnswerverifiedShow Answer

The CPI is also referred to as

Correct AnswerverifiedShow Answer

The labor force participation rate equals the

Correct AnswerverifiedShow Answer

The GDP deflator is the best measure that reflects the prices of goods and services purchased by the typical household.

Correct AnswerverifiedShow Answer

Workers laid off as a result of a recession suffer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
The nominal interest rate includes a cha...
View Answer

Correct Answer
verified

Correct Answer
verified
Real average hourly earnings in 2016 are...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Total expenditures for 2001 = (10 × $1.0...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified