Question 1

The U.S.Department of Labor calculates the unemployment rate by

Accepted Answer

A)  totaling the number of households receiving unemployment compensation.
B)  analyzing federal income tax returns.
C)  surveying households.
D)  surveying businesses to determine patterns of hiring and layoffs.

Question 2

The recession of 2001 was caused by

Accepted Answer

A)  endogenous factors.
B)  exogenous factors.
C)  equally by endogenous and exogenous factors.
D)  neither endogenous and exogenous factors.

Question 3

Frictional unemployment describes

Accepted Answer

A)  recent entrants,re-entrants,and voluntary quits who require only a short time to find new employment.
B)  the growing number of job seekers whose absence of skills makes them unemployable in any line of work except unskilled,dead-end jobs.
C)  the loss of jobs resulting from periods of recession.
D)  extended periods of unemployment during which retraining for new jobs occurs.
E)  seasonal layoffs and periods without work,such as construction and public school teaching.

Question 4

Suppose it costs a family $20,000 to live in 1987 and costs $50,000 to live today.If 1987 was the base year,how much is the CPI today?

Accepted Answer

A)  100
B)  200
C)  250
D)  500
E)  750

Question 5

Statement I: It is possible for the unemployment rate to decline while the total employment declines.
Statement II: It is possible for the unemployment rate to decline while the number of unemployed people stays the same.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.

Question 6

There were/was _____ recession(s) in the 1990s.

Accepted Answer

A)  no
B)  one
C)  two
D)  three
E)  four

Question 7

After a business cycle peak a recession follows

Accepted Answer

A)  all of the time.
B)  most of the time.
C)  some of the time.
D)  none of the time.

Question 8

Use the following choices regarding the various types of unemployment to describe the following situation.After staying home for 23 years raising her four children,Susan has reentered the labor force looking for full-time employment.

Accepted Answer

A)  Frictional unemployment
B)  Structural unemployment
C)  Natural unemployment
D)  Cyclical unemployment

Question 9

The government agency that computes the CPI is the ____.

Accepted Answer

Bureau of ...

Question 10

The term recession refers to

Accepted Answer

A)  a period of decline in real GDP for two business quarters.
B)  a fall in the general level of real wages.
C)  a fall in the CPI.
D)  a fall in the rate of increase of real per capita GDP.
E)  a prolonged period of falling prices.

Question 11

The Phillips curve shows the relationship between various rates of unemployment and

Accepted Answer

A)  interest rates.
B)  real wage rates.
C)  inflation.
D)  the money supply.
E)  investment demand.

Question 12

Suppose there are 8 million unemployed workers seeking jobs.After a period of time,2 million of them become discouraged over their job prospects and cease to look for work.As a result of this,the official unemployment rate would

Accepted Answer

A)  increase in the short run but eventually decline.
B)  increase.
C)  decline.
D)  be unchangeD.

Question 13

Because of discouraged workers,the unemployment rate

Accepted Answer

A)  tends to behave very erratically.
B)  overstates the unemployment problem.
C)  understates the unemployment problem.
D)  None of the choices are correct.

Question 14

Demand-pull inflation is often summed up as

Accepted Answer

A)  too many dollars chasing too few goods.
B)  the wage-price spiral.
C)  profit-push inflation.
D)  supply-side cost shock inflation.

Question 15

Label the graph below with respect to inflation,disinflation,and deflation.

Accepted Answer

The answer of Label the graph below with respect to...

Question 16

The CPI is calculated by

Accepted Answer

A)  summing the prices of all consumption goods in the economy.
B)  multiplying the rate of inflation in the economy times the unemployment rate.
C)  surveying a group of consumers and asking them about their monthly expenditures on necessities.
D)  pricing a basket of goods and services purchased by a typical urban householD.

Question 17

The prosperity phase of a three-phase cycle sets in after the _____ phase.

Accepted Answer

The answer of The prosperity phase of a three-phase cycle...

Question 18

Suppose that on average each dollar in 1988 would buy what could have been purchased for 25 cents in 1967 (which you assume is the base year for the CPI) .What is the CPI in 1988?

Accepted Answer

A)  100
B)  200
C)  400
D)  500
E)  ¼

Question 19

A discouraged worker is one who

Accepted Answer

A)  is unhappy with his job.
B)  quits his job to attend college.
C)  leaves the labor force after an unsuccessful job search.
D)  None of the choices are true of a discouraged worker.

Question 20

Which statement is true?

Accepted Answer

A)  People collecting unemployment benefits are not counted as unemployed.
B)  The Bureau of Labor Statistics compiles the unemployment rate from the data they collect from the unemployment insurance officers.
C)  The unemployment rate is calculated by dividing the number of unemployed by the number of employed.
D)  None of the statements are true.

Exam 10: Economic Fluctuations, unemployment, and Inflation

Suppose there are 8 million unemployed workers seeking jobs.After a period of time,2 million of them become discouraged over their job prospects and cease to look for work.As a result of this,the official unemployment rate would

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Which statement is true?

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Statement I: It is possible for the unemployment rate to decline while the total employment declines. Statement II: It is possible for the unemployment rate to decline while the number of unemployed people stays the same.

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The recession of 2001 was caused by

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The U.S.Department of Labor calculates the unemployment rate by

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A discouraged worker is one who

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Because of discouraged workers,the unemployment rate

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The government agency that computes the CPI is the ____.

Correct AnswerverifiedBureau of ...View AnswerShow Answer

Frictional unemployment describes

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There were/was _____ recession(s) in the 1990s.

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Label the graph below with respect to inflation,disinflation,and deflation.

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Suppose it costs a family $20,000 to live in 1987 and costs $50,000 to live today.If 1987 was the base year,how much is the CPI today?

Correct AnswerverifiedShow Answer

The prosperity phase of a three-phase cycle sets in after the _____ phase.

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Use the following choices regarding the various types of unemployment to describe the following situation.After staying home for 23 years raising her four children,Susan has reentered the labor force looking for full-time employment.

Correct AnswerverifiedShow Answer

Demand-pull inflation is often summed up as

Correct AnswerverifiedShow Answer

The CPI is calculated by

Correct AnswerverifiedShow Answer

After a business cycle peak a recession follows

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Suppose that on average each dollar in 1988 would buy what could have been purchased for 25 cents in 1967 (which you assume is the base year for the CPI) .What is the CPI in 1988?

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The Phillips curve shows the relationship between various rates of unemployment and

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The term recession refers to

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Bureau of ...
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