Question 1

Which one of the following is true?

Accepted Answer

A)  The nominal rate of interest is the real rate plus the anticipated rate of inflation.
B)  The real rate of interest is the nominal rate plus the anticipated rate of inflation.
C)  Increases in anticipated inflation increase the real interest rate.
D)  Increases in the CPI increase the real interest rate.E) A) and B)
F) A) and D)

Question 2

An individual who has stopped looking for a job because he is convinced that he cannot find a job is referred to as

Accepted Answer

A)  a contingent worker.
B)  a productive worker.
C)  a discouraged worker.
D)  an unemployed worker.E) B) and C)
F) B) and D)

Question 3

The rate of unemployment is calculated as the number of

Accepted Answer

A)  unemployed workers divided by the number of employed workers.
B)  people in the civilian labor force divided by the number of unemployed.
C)  unemployed divided by the number of people in the civilian labor force.
D)  employed workers divided by the number of unemployed workers.E) A) and D)
F) A) and C)

Question 4

The value of your money income,in terms of buying goods and services,is referred to as your money's

Accepted Answer

A)  staying power.
B)  rigidity factor.
C)  purchasing power.
D)  transaction cost.E) A) and D)
F) A) and C)

Question 5

The cost of inflation to society includes I.The opportunity costs of resources used by people to protect themselves against inflation
II.The costs associated with recalculating prices

Accepted Answer

A)  I only
B)  II only
C)  Both I and II
D)  Neither I nor IIE) A) and D)
F) A) and C)

Question 6

Fred recently lost his job as a teller at the bank.The bank explained that they were replacing Frank and others with ATM machines.Fred falls into a category of unemployment known as

Accepted Answer

A)  frictional unemployment.
B)  structural unemployment.
C)  cyclical unemployment.
D)  seasonal unemployment.E) None of the above
F) A) and B)

Question 7

A person who is currently not working and has stopped looking for a job because he or she is convinced there is no job available is classified as a

Accepted Answer

A)  discouraged worker.
B)  disgruntled worker.
C)  depressed worker.
D)  dissatisfied worker.E) A) and D)
F) All of the above

Question 8

In 2009,policy makers in the United States were dealing with a recession.Workers who were laid off due to the economic slowdown would be

Accepted Answer

A)  frictionally unemployed.
B)  structurally unemployed.
C)  cyclically unemployed.
D)  seasonally unemployed.E) All of the above
F) B) and D)

Question 9

An example of a frictionally unemployed individual is

Accepted Answer

A)  Charles,who has lost his job as an auto worker because of increased imports.
B)  Mary,who quit her job to find work closer to her home.
C)  Sam,who lost his job as a real estate salesperson when the housing market went soft.
D)  Cynthia,who has few skills and is no longer looking for work.E) B) and D)
F) A) and D)

Question 10

A major element of the concepts of inflation and deflation is

Accepted Answer

A)  the idea that price changes are measured daily.
B)  their dependence on average rather than individual prices.
C)  the requirement that ALL prices must be moving in the same direction.
D)  each household's willingness to report what they pay for goods and services each month.E) A) and B)
F) A) and C)

Question 11

Which of the following is NOT a criticism of the CPI?

Accepted Answer

A)  The CPI does not account for the way consumer substitute less expensive items for higher priced items.
B)  The CPI ignores changes in consumption patterns that occur between years in which it revises the index.
C)  The CPI ignores successful new products until long after they have been introduced.
D)  The CPI ignores the changes of prices of goods that firms produce and sell to each other.E) C) and D)
F) A) and B)

Question 12

Which of the following would NOT be a factor that has contributed to the rising female labor force participation rate?

Accepted Answer

A)  Greater access to education
B)  Greater access to training
C)  Increasing family size
D)  Reduction of barriers to competing with men for jobsE) A) and D)
F) A) and C)

Question 13

When the automobile replaced the horse as the primary means of transportation,the unemployment rate of blacksmiths increased.This was an example of

Accepted Answer

A)  cyclical unemployment.
B)  frictional unemployment.
C)  seasonal unemployment.
D)  structural unemployment.E) None of the above
F) C) and D)

Question 14

The natural rate of unemployment when seasonally adjusted includes

Accepted Answer

A)  frictional and structural unemployment but not cyclical.
B)  frictional and cyclical unemployment but not structural.
C)  frictional unemployment only.
D)  cyclical and structural unemployment but not frictional.E) B) and D)
F) B) and C)

Question 15

The National Bureau of Economic Research is

Accepted Answer

A)  funded by Congress and evaluates the budget appropriations.
B)  funded by the Federal Reserve Banks and analyzes the banking system.
C)  a nonprofit organization and evaluates the business cycles.
D)  a nonprofit organization and evaluates the U.S.monetary policy.E) C) and D)
F) B) and D)

Question 16

-In the table shown above,the total cost of the market basket in 2015 was

Accepted Answer

A)  $6.00.
B)  $8.50.
C)  $60.00.
D)  $85.00.E) B) and C)
F) None of the above

Question 17

If there is unemployment and all businesses are operating at less than full capacity,then

Accepted Answer

A)  there are too many workers,and some people ought to leave the labor force.
B)  we are not experiencing a net social cost to unemployment because it is offset by the capacity levels of the factories.
C)  society is producing inside its production possibilities curve.
D)  society is at the wrong point on the production possibilities curve.E) None of the above
F) All of the above

Question 18

How has the pattern of fluctuations in overall U.S.business activity changed since World War II?

Accepted Answer

A)  It has become less volatile.
B)  Expansions have been eliminated.
C)  Contractions have been eliminated.
D)  Recessions have been eliminated.E) A) and C)
F) B) and C)

Question 19

According to your text,during the 2000s,the inflation rate was in which range of percentages?

Accepted Answer

A)  0-5%
B)  5-10%
C)  10-15%
D)  15-20%E) None of the above
F) A) and B)

Question 20

Which of the following groups would NOT be considered as part of the civilian labor force?

Accepted Answer

A)  full-time students who are not working or looking for work
B)  those already employed
C)  those who are unemployed
D)  all individuals only working part-timeE) A) and B)
F) A) and C)

Exam 7: The Macroeconomy: Unemployment, inflation, and Deflation

How has the pattern of fluctuations in overall U.S.business activity changed since World War II?

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The National Bureau of Economic Research is

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An individual who has stopped looking for a job because he is convinced that he cannot find a job is referred to as

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Which of the following would NOT be a factor that has contributed to the rising female labor force participation rate?

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The value of your money income,in terms of buying goods and services,is referred to as your money's

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Which one of the following is true?

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According to your text,during the 2000s,the inflation rate was in which range of percentages?

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In 2009,policy makers in the United States were dealing with a recession.Workers who were laid off due to the economic slowdown would be

Correct AnswerverifiedShow Answer

If there is unemployment and all businesses are operating at less than full capacity,then

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When the automobile replaced the horse as the primary means of transportation,the unemployment rate of blacksmiths increased.This was an example of

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An example of a frictionally unemployed individual is

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The rate of unemployment is calculated as the number of

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A person who is currently not working and has stopped looking for a job because he or she is convinced there is no job available is classified as a

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A major element of the concepts of inflation and deflation is

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Which of the following is NOT a criticism of the CPI?

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-In the table shown above,the total cost of the market basket in 2015 was

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The natural rate of unemployment when seasonally adjusted includes

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Which of the following groups would NOT be considered as part of the civilian labor force?

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The cost of inflation to society includes I.The opportunity costs of resources used by people to protect themselves against inflation II.The costs associated with recalculating prices

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Fred recently lost his job as a teller at the bank.The bank explained that they were replacing Frank and others with ATM machines.Fred falls into a category of unemployment known as

Correct AnswerverifiedShow Answer

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