Question 1

Suppose that last year the Consumer Price Index was 124; this year it is 130.7. What was the inflation rate between these years?

Accepted Answer

A)   5.4 percent
B)   30.7 percent
C)   5.1 percent
D)   6.7 percent

Question 2

Consider the following statement: ʺReal GDP and potential GDP are always equal.ʺ Is this statement true or false? Explain your answer.

Accepted Answer

Real GDP often differs from potential GD...

Question 3

The working-age population is defined as the number of

Accepted Answer

A)   people looking for work.
B)   people over the age of 16 who are not in jail, hospital, or other institution.
C)   people working full-time jobs who are over the age of 16.
D)   people who have a job.

Question 4

How does the unemployment rate change in a recession and in an expansion?

Accepted Answer

During a recession, the unempl...

Question 5

The labor force is defined as

Accepted Answer

A)   workers with jobs and unemployed workers.
B)   people with full time jobs.
C)   all people capable of work.
D)   All of the above answers are correct.

Question 6

The unemployment rate is at the natural unemployment rate when

Accepted Answer

A)   frictional unemployment equals zero.
B)   cyclical unemployment equals zero.
C)   structural unemployment equals zero.
D)   all types of unemployment equal zero.

Question 7

Frictional unemployment comes about because of

Accepted Answer

A)   a mismatch between skills and available jobs.
B)   friction between labor and management.
C)   a general economic slowdown.
D)   normal labor market turnover.

Question 8

20082009 Item  Quantity  Frice  Price  Movie tickets 4$5.00$7.50 Bags of  popcorn 2$3.00$3.00 Drinks of soda 4$1.00$1.50\begin{array} { | c | l | l | l | } \hline && { 2008 } & 2009 \\hline 	ext { Item } & 	ext { Quantity } & 	ext { Frice } & 	ext { Price } \\hline 	ext { Movie tickets } & 4 & \$ 5.00 & \$ 7.50 \\hline \begin{array} { c } 	ext { Bags of } \	ext { popcorn }\end{array} & 2 & \$ 3.00 & \$ 3.00 \\hline 	ext { Drinks of soda } & 4 & \$ 1.00 & \$ 1.50 \\hline\end{array} Item  Movie tickets  Bags of  popcorn ​ Drinks of soda ​ Quantity 424​2008 Frice $5.00$3.00$1.00​2009 Price $7.50$3.00$1.50​​ 
-The CPI basket contains 400 oranges and 800 pens. In the base year, the price of an orange is $1.00 and the price of a pen is $0.75. This year, urban consumers each buy 300 oranges at $2.00 each and 850 pens at $1.00 each. The CPI this year is__________ .

Accepted Answer

A)   140
B)   160
C)   1.60
D)   62.5

Question 9

If unemployment is at the natural rate, then there

Accepted Answer

A)   will be only cyclical unemployment.
B)   is no frictional unemployment.
C)   is no cyclical unemployment.
D)   will be cyclical and frictional unemployment but not structural unemployment.

Question 10

Full employment occurs when

Accepted Answer

A)   structural unemployment is zero.
B)   frictional unemployment is zero.
C)   cyclical and frictional unemployment are zero.
D)   cyclical unemployment is zero.

Question 11

Based on the following data for the country of Tiny Town, the unemployment rate equals: Population = 100
Labor force = 80
Number of employed persons = 70 Number of discouraged workers = 5

Accepted Answer

A)   5/70 × 100.
B)   15/80 × 100.
C)   10/80 × 100.
D)   10/100 × 100.

Question 12

If last yearʹs price level was 100 and this yearʹs price level is 114, over the year the inflation rate has been

Accepted Answer

A)   100 percent.
B)   14 percent.
C)   12 percent
D)   114 percent.

Question 13

The unemployment rate generally falls during __________in the business cycle.

Accepted Answer

A)   an expansion
B)   a recession
C)   a trough
D)   a peak

Question 14

The labor force is defined as the number of people who

Accepted Answer

A)   would like to have a job but have stopped seeking work.
B)   would like to have a full-time job but are working part-time.
C)   are employed plus the number of people who are unemployed.
D)   are available and looking for work but are unable to find employment.

Question 15

The official U-3 unemployment rate

Accepted Answer

A)   counts discouraged workers as unemployed.
B)   counts people with part-time jobs who want full-time jobs as unemployed.
C)   includes persons without a job, whether they are actively searching for work or not.
D)   includes persons without a job who have made efforts in the last week to find a job.

Question 16

In a country with a working-age population of 300 million, 230 million workers are employed and 40 million workers are unemployed. What is the labor force participation rate?

Accepted Answer

A)   5 percent
B)   90 percent
C)   65 percent
D)   100 percent

Question 17

If the CPI was 122.3 at the end of last year and 124.5 at the end of this year, the inflation rate over these two years was

Accepted Answer

A)   22.5 percent.
B)   18.0 percent.
C)   2.5 percent.
D)   1.8 percent.

Question 18

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people. What number of people are unemployed?

Accepted Answer

A)   25 million people
B)   100 million people
C)   20 million people
D)   5 million people

Exam 5: Monitoring Jobs and Inflation

The official U-3 unemployment rate

Correct Answer
verified

If last yearʹs price level was 100 and this yearʹs price level is 114, over the year the inflation rate has been

Correct Answer
verified

In a country with a working-age population of 300 million, 230 million workers are employed and 40 million workers are unemployed. What is the labor force participation rate?

Correct Answer
verified

The unemployment rate is at the natural unemployment rate when

Correct Answer
verified

The labor force is defined as

Correct Answer
verified

The unemployment rate generally falls during __________in the business cycle.

Correct Answer
verified

The labor force is defined as the number of people who

Correct Answer
verified

How does the unemployment rate change in a recession and in an expansion?

Correct Answer
verified
During a recession, the unempl...
View Answer

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people. What number of people are unemployed?

Correct Answer
verified

Correct Answer
verified

Full employment occurs when

Correct Answer
verified

Frictional unemployment comes about because of

Correct Answer
verified

Consider the following statement: ʺReal GDP and potential GDP are always equal.ʺ Is this statement true or false? Explain your answer.

Correct Answer
verified
Real GDP often differs from potential GD...
View Answer

If the CPI was 122.3 at the end of last year and 124.5 at the end of this year, the inflation rate over these two years was

Correct Answer
verified

If unemployment is at the natural rate, then there

Correct Answer
verified

The working-age population is defined as the number of

Correct Answer
verified

Based on the following data for the country of Tiny Town, the unemployment rate equals: Population = 100 Labor force = 80 Number of employed persons = 70 Number of discouraged workers = 5

Correct Answer
verified

Suppose that last year the Consumer Price Index was 124; this year it is 130.7. What was the inflation rate between these years?

Correct Answer
verified

Exam 5: Monitoring Jobs and Inflation

The official U-3 unemployment rate

Correct AnswerverifiedShow Answer

If last yearʹs price level was 100 and this yearʹs price level is 114, over the year the inflation rate has been

Correct AnswerverifiedShow Answer

In a country with a working-age population of 300 million, 230 million workers are employed and 40 million workers are unemployed. What is the labor force participation rate?

Correct AnswerverifiedShow Answer

The unemployment rate is at the natural unemployment rate when

Correct AnswerverifiedShow Answer

The labor force is defined as

Correct AnswerverifiedShow Answer

The unemployment rate generally falls during __________in the business cycle.

Correct AnswerverifiedShow Answer

The labor force is defined as the number of people who

Correct AnswerverifiedShow Answer

How does the unemployment rate change in a recession and in an expansion?

Correct AnswerverifiedDuring a recession, the unempl...View AnswerShow Answer

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people. What number of people are unemployed?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Full employment occurs when

Correct AnswerverifiedShow Answer

Frictional unemployment comes about because of

Correct AnswerverifiedShow Answer

Consider the following statement: ʺReal GDP and potential GDP are always equal.ʺ Is this statement true or false? Explain your answer.

Correct AnswerverifiedReal GDP often differs from potential GD...View AnswerShow Answer

If the CPI was 122.3 at the end of last year and 124.5 at the end of this year, the inflation rate over these two years was

Correct AnswerverifiedShow Answer

If unemployment is at the natural rate, then there

Correct AnswerverifiedShow Answer

The working-age population is defined as the number of

Correct AnswerverifiedShow Answer

Based on the following data for the country of Tiny Town, the unemployment rate equals: Population = 100 Labor force = 80 Number of employed persons = 70 Number of discouraged workers = 5

Correct AnswerverifiedShow Answer

Suppose that last year the Consumer Price Index was 124; this year it is 130.7. What was the inflation rate between these years?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
During a recession, the unempl...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Real GDP often differs from potential GD...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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