Macroeconomics Chapter 23 Review Questions with complete Solutions Graded A+
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Macroeconomics
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Macroeconomics
Macroeconomics Chapter 23 Review Questions with complete Solutions Graded A+
(T/F) The official unemployment rate is a useful but not altogether accurate measure of joblessness. - Answers True
What does anticipated inflation affect? - Answers all aspects of the economy
Two primary goals for macr...
Macroeconomics Chapter 23 Review Questions with complete Solutions Graded A+
(T/F) The official unemployment rate is a useful but not altogether accurate measure of joblessness. -
Answers True
What does anticipated inflation affect? - Answers all aspects of the economy
Two primary goals for macroeconomists are price stability and... - Answers low unemployment
(T/F) In 2002, the French adopted the British pound as their national currency. - Answers False
A group of 10 people includes 3 retirees, 2 part-time workers, 2 discouraged workers, 1 unemployed
worker, and 2 full-time workers. If the discouraged workers in this group became active job searchers,
then... - Answers unemployment rate and the labor force participation rate would rise.
An example of structural unemployment is a... - Answers geologist who is permanently laid off because
of an increase in wages won by labor unions
Last week Stephanie quit her job as a copywriter. She has spent the past few days browsing the help
wanted ads but hasn't found anything that matches her skills. Stephanie is best classified as... - Answers
frictionally unemployed
If the actual inflation rate is less than the expected inflation rate... - Answers lenders gain and borrowers
lose.
The natural rate of unemployment is equal to... - Answers the sum of frictional and structural
unemployment
If the actual unemployment rate is 7% and the cyclical unemployment rate is 2%, then the natural rate
of unemployment is - Answers 5%
Radhika just graduated college. She recently quit her part-time job to focus on finding a full-time job
that better uses the skills she acquired in college. Radhika is considered to be - Answers frictionally
unemployed
A bank makes a loan for 1 year. The nominal annual interest rate is 7.5%. The real rate is 4%. Over the
year, overall prices increase by 4%. This rate of inflation hurt the _____ because the actual rate of
inflation was _____ than the anticipated rate. - Answers lender; higher
(T/F) A jobless recovery occurs when GDP is growing at a below-average rate and unemployment is
rising. - Answers True
Menu costs refer to the increased cost of... - Answers changing listed prices
If the price level decreases, real income will... - Answers increase
, Unemployment that is due to the time workers spend in job search is _____ unemployment - Answers
frictional
(T/F) When the price level increases, everyone becomes poorer. - Answers False
(T/F) If the price level at the end of year 1 is 150 and the price level at the end of year 2 is 160, the
inflation rate in year 2 is 6.67%. - Answers True
Structural unemployment can be caused by all of the following EXCEPT:
- efficiency wages
- fluctuations in the business cycle
- minimum wages.
- labor unions. - Answers fluctuations in the business cycle
The unemployment rate equals the number of _____ divided by the number of _____ times 100. -
Answers unemployed; labor force
According to the Congressional Budget Office, the natural rate of unemployment... - Answers rose until
the end of the 1970s and has declined since then
total number of people actively working, either full-time or part-time. - Answers employment
A survey reveals that on an island 1,000 people have jobs, 250 people are unemployed and looking for
jobs, and 450 people are neither working nor looking for work. The unemployment rate on the island
is... - Answers 20%
(T/F) Between 1921 and 1923 Germany underwent a period of hyperinflation. - Answers True
Last month Brent lost his job at the factory because it relocated to Asia. Brent and his former coworkers
have been looking for similar jobs, but they have found no openings. In Brent's town the _____ labor has
_____. - Answers demand for; fallen
the ratio of all of the people unemployed to those in the labor force - Answers unemployment rate
Income divided by the price level is _____ income - Answers real
To be officially unemployed, a person must... - Answers not have a job and must have looked for work in
the past four weeks.
(T/F) The U.S. inflation rate was higher in the 2000s than it was in the 1970s. - Answers False
A person who has no job but is looking for one is... - Answers unemployed and part of the labor force
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