Question 1

Table 20-19
 
-Refer to Table 20-19. Looking at the table above, what is the approximate rate of growth of real average hourly earnings from 2011 to 2012?

Accepted Answer

A)   15%
B)   4.4%
C)   -1.5%
D)   -4.8%E) A) and C)
F) None of the above

Question 2

Table 20-1
  Consider the data above for a simple economy.
-Refer to Table 20-1. The labor force participation rate for this simple economy equals

Accepted Answer

A)   (1,000/1,100)  × 100.
B)   (1,000/15,000)  × 100.
C)   (1,100/15,000)  × 100.
D)   (1,100/20,000)  × 100.E) A) and B)
F) None of the above C

Question 3

What effect does the payment of government unemployment insurance have on the unemployment rate?

Accepted Answer

The payment of government unemployment i...

Question 4

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) B) and C)

Question 5

Which of the following is not an example of inflation causing a redistribution of income because the inflation was unanticipated?

Accepted Answer

A)   A firm signs a 3-year contract with a union based on a 2 percent anticipated rate of inflation per year, and the actual rate of inflation ends up being 7 percent per year.
B)   A worker receives a raise in salary that is less than the rate of inflation, because management under-predicted inflation.
C)   Firms have to hire an extra worker to change prices in its store because of inflation.
D)   A bank collects a lower amount of interest from a loan because inflation was under-predicted.E) C) and D)
F) B) and C) C

Question 6

If inflation is anticipated, some effects of inflation on the redistribution of income can be avoided.

Accepted Answer

A) True 
 B)False

Question 7

Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower

Accepted Answer

A)   frictional unemployment.
B)   structural unemployment.
C)   cyclical unemployment.
D)   seasonal unemployment.
E)   unnatural unemployment.F) A) and B)
G) A) and D)

Question 8

The Bureau of Labor Statistics would categorize a retiree who is not working as

Accepted Answer

A)   employed.
B)   unemployed.
C)   a discouraged worker.
D)   out of the labor force.E) A) and D)
F) A) and C)

Question 9

Structural unemployment is the result of

Accepted Answer

A)   a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs.
B)   the search process of matching workers with jobs.
C)   the ups and downs in inflation.
D)   a slowdown in the economy.E) A) and B)
F) A) and D)

Question 10

Explain what economists mean by full employment and why this rate of unemployment is not zero.

Accepted Answer

Full employment occurs in the macro econ...

Question 11

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) C) and D)
F) B) and D)

Question 12

Discuss the likely impact of each of the following on the unemployment rate:
a. The length of time workers are eligible to receive unemployment insurance payments is cut in half.
b. The government passes a law making labor unions illegal.
c. The minimum wage is raised by 50 percent.
d. The government funds an Internet site where companies can post job openings at no charge.

Accepted Answer

a. The unemployment rate will likely dec...

Question 13

What is outlet bias?

Accepted Answer

A)   the tendency for households to spend more money over time
B)   the tendency for households to spend their money at discount stores as prices rise
C)   the tendency for the quality of products to improve over time even though the CPI does not measure changes in quality
D)   the tendency for consumers to purchase newer, more technologically advanced products even though they have higher pricesE) C) and D)
F) B) and D)

Question 14

Due to slowing growth in China and other developing countries, Caterpillar ________ the number of persons it employed in 2013 and this ________ the total number of persons unemployed in the economy.

Accepted Answer

A)   decreased; increased
B)   decreased; decreased
C)   increased; decreased
D)   increased; increasedE) B) and C)
F) A) and D)

Question 15

If the price level rose in three consecutive years from 100 to 120 to 140, then the annual inflation rate over those years would

Accepted Answer

A)   increase.
B)   remain the same.
C)   decrease.
D)   equal 20%.E) A) and D)
F) All of the above

Question 16

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) C) and D)
F) A) and C)

Question 17

If inflationary expectations are increasing, we would expect that the nominal interest rate would also be increasing, holding all else constant.

Accepted Answer

A) True 
 B)False  True

Question 18

The stated interest rate on a loan is the

Accepted Answer

A)   real interest rate.
B)   nominal interest rate.
C)   actual inflation rate.
D)   expected inflation rate.E) None of the above
F) A) and B)

Question 19

Jack just told his boss that he thinks his boss is an idiot. It is likely that Jack will be experiencing ________ unemployment in the near future.

Accepted Answer

A)   permanent
B)   cyclical
C)   frictional
D)   structuralE) B) and C)
F) A) and C)

Question 20

If inflation is higher than expected, this helps borrowers (by reducing the real interest rate they pay) and hurts lenders (by reducing the real interest rate they receive).

Accepted Answer

A) True 
 B)False

Exam 20: Unemployment and Inflation

Table 20-19 -Refer to Table 20-19. Looking at the table above, what is the approximate rate of growth of real average hourly earnings from 2011 to 2012?

Correct Answer
verified

Table 20-1 Consider the data above for a simple economy. -Refer to Table 20-1. The labor force participation rate for this simple economy equals

Correct Answer
verified
C

What effect does the payment of government unemployment insurance have on the unemployment rate?

Correct Answer
verified
The payment of government unemployment i...
View Answer

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

Correct Answer
verified

Which of the following is not an example of inflation causing a redistribution of income because the inflation was unanticipated?

Correct Answer
verified
C

If inflation is anticipated, some effects of inflation on the redistribution of income can be avoided.

Correct Answer
verified

Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower

Correct Answer
verified

The Bureau of Labor Statistics would categorize a retiree who is not working as

Correct Answer
verified

Structural unemployment is the result of

Correct Answer
verified

Explain what economists mean by full employment and why this rate of unemployment is not zero.

Correct Answer
verified
Full employment occurs in the macro econ...
View Answer

The CPI is also referred to as

Correct Answer
verified

Correct Answer
verified
a. The unemployment rate will likely dec...
View Answer

What is outlet bias?

Correct Answer
verified

Due to slowing growth in China and other developing countries, Caterpillar the number of persons it employed in 2013 and this the total number of persons unemployed in the economy.

Correct Answer
verified

If the price level rose in three consecutive years from 100 to 120 to 140, then the annual inflation rate over those years would

Correct Answer
verified

Most of the unemployment that occurred during the Great Depression was

Correct Answer
verified

If inflationary expectations are increasing, we would expect that the nominal interest rate would also be increasing, holding all else constant.

Correct Answer
verified
True

The stated interest rate on a loan is the

Correct Answer
verified

Jack just told his boss that he thinks his boss is an idiot. It is likely that Jack will be experiencing ________ unemployment in the near future.

Correct Answer
verified

If inflation is higher than expected, this helps borrowers (by reducing the real interest rate they pay) and hurts lenders (by reducing the real interest rate they receive).

Correct Answer
verified

Exam 20: Unemployment and Inflation

Table 20-19 -Refer to Table 20-19. Looking at the table above, what is the approximate rate of growth of real average hourly earnings from 2011 to 2012?

Correct AnswerverifiedShow Answer

Table 20-1 Consider the data above for a simple economy. -Refer to Table 20-1. The labor force participation rate for this simple economy equals

Correct AnswerverifiedC

What effect does the payment of government unemployment insurance have on the unemployment rate?

Correct AnswerverifiedThe payment of government unemployment i...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is not an example of inflation causing a redistribution of income because the inflation was unanticipated?

Correct AnswerverifiedC

If inflation is anticipated, some effects of inflation on the redistribution of income can be avoided.

Correct AnswerverifiedShow Answer

Establishing a state employment agency that speeds up the process of matching unemployed workers with unfilled jobs is an attempt to lower

Correct AnswerverifiedShow Answer

The Bureau of Labor Statistics would categorize a retiree who is not working as

Correct AnswerverifiedShow Answer

Structural unemployment is the result of

Correct AnswerverifiedShow Answer

Explain what economists mean by full employment and why this rate of unemployment is not zero.

Correct AnswerverifiedFull employment occurs in the macro econ...View AnswerShow Answer

The CPI is also referred to as

Correct AnswerverifiedShow Answer

Correct Answerverifieda. The unemployment rate will likely dec...View AnswerShow Answer

What is outlet bias?

Correct AnswerverifiedShow Answer

Due to slowing growth in China and other developing countries, Caterpillar ________ the number of persons it employed in 2013 and this ________ the total number of persons unemployed in the economy.

Correct AnswerverifiedShow Answer

If the price level rose in three consecutive years from 100 to 120 to 140, then the annual inflation rate over those years would

Correct AnswerverifiedShow Answer

Most of the unemployment that occurred during the Great Depression was

Correct AnswerverifiedShow Answer

If inflationary expectations are increasing, we would expect that the nominal interest rate would also be increasing, holding all else constant.

Correct AnswerverifiedTrue

The stated interest rate on a loan is the

Correct AnswerverifiedShow Answer

Jack just told his boss that he thinks his boss is an idiot. It is likely that Jack will be experiencing ________ unemployment in the near future.

Correct AnswerverifiedShow Answer

If inflation is higher than expected, this helps borrowers (by reducing the real interest rate they pay) and hurts lenders (by reducing the real interest rate they receive).

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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C

Correct Answer
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The payment of government unemployment i...
View Answer

Correct Answer
verified

Correct Answer
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C

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Full employment occurs in the macro econ...
View Answer

Correct Answer
verified

Correct Answer
verified
a. The unemployment rate will likely dec...
View Answer

Correct Answer
verified

Due to slowing growth in China and other developing countries, Caterpillar the number of persons it employed in 2013 and this the total number of persons unemployed in the economy.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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True

Correct Answer
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Correct Answer
verified

Correct Answer
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