Question 1

Exhibit 6-2
 
-Refer to Exhibit 6-2. The labor force participation rate in year 3 is

Accepted Answer

A)  12 1/2 percent.
B)  70 percent.
C)  80 percent.
D)  30 percent.
E)  50 percent.F) B) and C)
G) A) and B)

Question 2

When flat screen televisions were first introduced in 1997 they were priced at $15,000. If the CPI in 1997 was 160 and the CPI in 2019 is 265, then this price is equivalent to approximately ______________________in 2019 dollars. If the average flat screen TV sells for $550 in 2019, the percentage change between the inflation-adjusted price of a flat screen TV in 1997 and the actual price in 2019 price is ___________.

Accepted Answer

A)  $15,469; -96.4 percent
B)  $19,887; -95.6 percent
C)  $24,844; -97.7 percent
D)  $154; 3.6 percent
E)  $367; 8.3 percentF) A) and E)
G) D) and E)

Question 3

Jones lost his job in industry A, but he has skills that can be transferred to industry B (which is currently hiring) . Smith lost a job in industry C, but his skills cannot be transferred to industry B or to any other industry. Jones is __________ unemployed and Smith is __________ unemployed.

Accepted Answer

A)  structurally; frictionally
B)  structurally; structurally
C)  frictionally; frictionally
D)  frictionally; structurallyE) A) and B)
F) None of the above

Question 4

In an economy with 200 million people, 140 million hold civilian jobs and 9 million are not working but are looking for jobs. The unemployment rate is

Accepted Answer

A)  6.4%
B)  6.0%.
C)  9.2%.
D)  27.4%.
E)  4.5%F) A) and B)
G) A) and C)

Question 5

Which of the following statements is false?

Accepted Answer

A)  The sum of the unemployment rate and the employment rate always equals 100 percent.
B)  The sum of the number of employed persons and the number of unemployed persons equals the civilian non-institutional population.
C)  The labor force participation rate equals the number of persons in the civilian labor force divided by the number of persons in the total population.
D)  a, b, and cE) C) and D)
F) B) and C)

Question 6

Look at the following data: The frictional unemployment rate is 3 percent, the natural unemployment rate is 6.5 percent, and the cyclical unemployment rate is 2.4 percent. The structural unemployment rate is __________ percent and the actual unemployment rate (in this economy)  is __________ percent.

Accepted Answer

A)  3; 8.9
B)  3.5; 8.9
C)  3.5; 9.5
D)  5.4; 2.4
E)  none of the aboveF) A) and B)
G) A) and C)

Question 7

If the CPI is 100 in the base year and 106 in the current year, how much did prices rise between the base year and the current year?

Accepted Answer

A)  6 percent
B)  106 percent
C)  1.06 percent
D)  0.06 percent
E)  60 percentF) B) and D)
G) C) and D)

Question 8

Exhibit 6-2
 
-Refer to Exhibit 6-2. The employment rate in year 1 is

Accepted Answer

A)  12 1/2 percent.
B)  70 percent.
C)  87 1/2 percent.
D)  30 percent.
E)  10 percent.F) A) and B)
G) B) and E)

Question 9

Exhibit 6-2
 
-Refer to Exhibit 6-2. The labor force participation rate in year 4 is

Accepted Answer

A)  12 1/2 percent.
B)  72 percent.
C)  87 1/2 percent.
D)  30 percent.
E)  80 percent.F) All of the above
G) B) and C)

Question 10

If there are 10 job losers, 12 job leavers, 13 reentrants, and 12 new entrants, then there are __________ unemployed persons.

Accepted Answer

A)  35
B)  47
C)  25
D)  37
E)  There is not enough information to answer the question.F) D) and E)
G) B) and D)

Question 11

The number of employed persons plus the number of unemployed persons equals the number of persons

Accepted Answer

A)  in the total population.
B)  in the civilian noninstitutional population.
C)  in the civilian labor force.
D)  not in the labor force.
E)  none of the aboveF) A) and D)
G) C) and D)

Question 12

Exhibit 6-2
 
-Refer to Exhibit 6-2. The employment rate in year 3 is

Accepted Answer

A)  12 1/2 percent.
B)  33 1/3 percent.
C)  70 percent.
D)  66 2/3 percent.
E)  25 percent.F) All of the above
G) A) and E)

Question 13

Smith's income was $50,000 in year 1 and $55,600 in year 2. The CPI was 114 in year 1 and 124 in year 2. What was the approximate percentage change in Smith's real income between the two years?

Accepted Answer

A)  -2.2 percent
B)  +3.4 percent
C)  -1.7 percent
D)  +5.6 percent
E)  +2.2 percentF) All of the above
G) A) and B)

Question 14

Exhibit 6-2
 
-Refer to Exhibit 6-2. How many unemployed persons are there in year 3?

Accepted Answer

A)  50 million
B)  100 million
C)  150 million
D)  350 million
E)  400 millionF) A) and E)
G) A) and D)

Question 15

Exhibit 6-2
 
-Refer to Exhibit 6-2. The labor force participation rate in year 1 is

Accepted Answer

A)  12 1/2 percent.
B)  80 percent.
C)  87 1/2 percent.
D)  70 percent.
E)  10 percent.F) B) and E)
G) C) and D)

Question 16

Exhibit 6-2
 
-Refer to Exhibit 6-2. How many unemployed persons are there in year 4?

Accepted Answer

A)  80 million
B)  100 million
C)  150 million
D)  350 million
E)  400 millionF) A) and E)
G) C) and D)

Question 17

Exhibit 6-2
 
-Refer to Exhibit 6-2. How many persons are not participating in the labor force in year 3?

Accepted Answer

A)  50 million
B)  100 million
C)  150 million
D)  350 million
E)  400 millionF) B) and E)
G) C) and D)

Question 18

Suppose there are 200 million persons in the population, 120 million persons in the civilian labor force, and 90 million persons are employed. The number of persons unemployed is _______ million and the unemployment rate is ___________ percent.

Accepted Answer

A)  30; 25
B)  30; 33
C)  30; 5
D)  80; 40E) A) and B)
F) B) and C)

Question 19

Exhibit 6-2
 
-Refer to Exhibit 6-2. How many unemployed persons are there in year 1?

Accepted Answer

A)  25 million
B)  50 million
C)  75 million
D)  175 million
E)  200 millionF) A) and D)
G) C) and E)

Question 20

The difference between the existing unemployment rate and the natural unemployment rate is defined is the __________ unemployment rate.

Accepted Answer

A)  frictional
B)  structural
C)  cyclical
D)  naturalE) None of the above
F) B) and D)

Exam 6: Macroeconomic Measurements Part I Prices and Unemployment

Correct Answer
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Look at the following data: The frictional unemployment rate is 3 percent, the natural unemployment rate is 6.5 percent, and the cyclical unemployment rate is 2.4 percent. The structural unemployment rate is percent and the actual unemployment rate (in this economy) is percent.

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If the CPI is 100 in the base year and 106 in the current year, how much did prices rise between the base year and the current year?

Correct Answer
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Exhibit 6-2 -Refer to Exhibit 6-2. How many persons are not participating in the labor force in year 3?

Correct Answer
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Exhibit 6-2 -Refer to Exhibit 6-2. The employment rate in year 1 is

Correct Answer
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Which of the following statements is false?

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Exhibit 6-2 -Refer to Exhibit 6-2. How many unemployed persons are there in year 3?

Correct Answer
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Exhibit 6-2 -Refer to Exhibit 6-2. The labor force participation rate in year 3 is

Correct Answer
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Exhibit 6-2 -Refer to Exhibit 6-2. How many unemployed persons are there in year 4?

Correct Answer
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In an economy with 200 million people, 140 million hold civilian jobs and 9 million are not working but are looking for jobs. The unemployment rate is

Correct Answer
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Jones lost his job in industry A, but he has skills that can be transferred to industry B (which is currently hiring) . Smith lost a job in industry C, but his skills cannot be transferred to industry B or to any other industry. Jones is unemployed and Smith is unemployed.

Correct Answer
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Exhibit 6-2 -Refer to Exhibit 6-2. The labor force participation rate in year 1 is

Correct Answer
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The difference between the existing unemployment rate and the natural unemployment rate is defined is the __________ unemployment rate.

Correct Answer
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Exhibit 6-2 -Refer to Exhibit 6-2. How many unemployed persons are there in year 1?

Correct Answer
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Smith's income was $50,000 in year 1 and $55,600 in year 2. The CPI was 114 in year 1 and 124 in year 2. What was the approximate percentage change in Smith's real income between the two years?

Correct Answer
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Exhibit 6-2 -Refer to Exhibit 6-2. The labor force participation rate in year 4 is

Correct Answer
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If there are 10 job losers, 12 job leavers, 13 reentrants, and 12 new entrants, then there are __________ unemployed persons.

Correct Answer
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Exhibit 6-2 -Refer to Exhibit 6-2. The employment rate in year 3 is

Correct Answer
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The number of employed persons plus the number of unemployed persons equals the number of persons

Correct Answer
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Suppose there are 200 million persons in the population, 120 million persons in the civilian labor force, and 90 million persons are employed. The number of persons unemployed is _ million and the unemployment rate is _____ percent.

Correct Answer
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Exam 6: Macroeconomic Measurements Part I Prices and Unemployment

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If the CPI is 100 in the base year and 106 in the current year, how much did prices rise between the base year and the current year?

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Exhibit 6-2 -Refer to Exhibit 6-2. How many persons are not participating in the labor force in year 3?

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Exhibit 6-2 -Refer to Exhibit 6-2. The employment rate in year 1 is

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Which of the following statements is false?

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Exhibit 6-2 -Refer to Exhibit 6-2. How many unemployed persons are there in year 3?

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Exhibit 6-2 -Refer to Exhibit 6-2. The labor force participation rate in year 3 is

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Exhibit 6-2 -Refer to Exhibit 6-2. How many unemployed persons are there in year 4?

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In an economy with 200 million people, 140 million hold civilian jobs and 9 million are not working but are looking for jobs. The unemployment rate is

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Jones lost his job in industry A, but he has skills that can be transferred to industry B (which is currently hiring) . Smith lost a job in industry C, but his skills cannot be transferred to industry B or to any other industry. Jones is __________ unemployed and Smith is __________ unemployed.

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Exhibit 6-2 -Refer to Exhibit 6-2. The labor force participation rate in year 1 is

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The difference between the existing unemployment rate and the natural unemployment rate is defined is the __________ unemployment rate.

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Exhibit 6-2 -Refer to Exhibit 6-2. How many unemployed persons are there in year 1?

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Smith's income was $50,000 in year 1 and $55,600 in year 2. The CPI was 114 in year 1 and 124 in year 2. What was the approximate percentage change in Smith's real income between the two years?

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Exhibit 6-2 -Refer to Exhibit 6-2. The labor force participation rate in year 4 is

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If there are 10 job losers, 12 job leavers, 13 reentrants, and 12 new entrants, then there are __________ unemployed persons.

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Exhibit 6-2 -Refer to Exhibit 6-2. The employment rate in year 3 is

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The number of employed persons plus the number of unemployed persons equals the number of persons

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Suppose there are 200 million persons in the population, 120 million persons in the civilian labor force, and 90 million persons are employed. The number of persons unemployed is _______ million and the unemployment rate is ___________ percent.

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Jones lost his job in industry A, but he has skills that can be transferred to industry B (which is currently hiring) . Smith lost a job in industry C, but his skills cannot be transferred to industry B or to any other industry. Jones is unemployed and Smith is unemployed.

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Suppose there are 200 million persons in the population, 120 million persons in the civilian labor force, and 90 million persons are employed. The number of persons unemployed is _ million and the unemployment rate is _____ percent.

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