Question 1

Suppose a person lost a factory job six months ago,spent 3 months in a fruitless search for work,and then stopped looking.In the collection of official statistics,such a person is considered

Accepted Answer

A)  still employed in the factory job.
B)  structurally unemployed.
C)  cyclically unemployed.
D)  frictionally unemployeD.
E)  out of the labor force.F) B) and C)
G) B) and E)

Question 2

Disinflation occurs when

Accepted Answer

A)  the rate of inflation rises.
B)  the rate of inflation declines.
C)  the price level declines.
D)  the price level stays the same.E) A) and B)
F) None of the above

Question 3

Business cycle troughs are always followed by the _____ phase.

Accepted Answer

The answer of Business cycle troughs are always followed by...

Question 4

-A trough occurs at point

Accepted Answer

A)  V.
B)  W.
C)  X.
D)  Y.
E)  Z.F) A) and E)
G) B) and C)

Question 5

A person who is not in the labor force and not actively looking for a job is

Accepted Answer

A)  employed.
B)  unemployed.
C)  underemployed.
D)  discouraged.E) A) and C)
F) B) and C)

Question 6

Which of the following statements is true?

Accepted Answer

A)  The price shock theory of the business cycle is endogenous.
B)  Across the board over investment,particularly in the telecommunications industry,prior to 2001 caused a recession in that year.
C)  When the Index of Leading Indicators turns downward,a recession almost always follows.
D)  The terrorist attacks on 9/11 caused the recession of 2001.
E)  The inventory cycle theory of the business cycle is exogenous.F) D) and E)
G) B) and D)

Question 7

In a three-phase business cycle,the recovery phase is always followed immediately by ______.

Accepted Answer

A)  the peak
B)  the trough
C)  recession
D)  prosperityE) B) and D)
F) A) and C)

Question 8

Statement I: Our economy is expanding a majority of the time.
Statement II: We have had only two recessions since 1945 that lasted over one year.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.E) B) and C)
F) C) and D)

Question 9

Which of the following people would be considered unemployed?

Accepted Answer

A)  A 55 year-old steel worker who was laid off 18 months ago and has given up trying to find a job
B)  A woman who has quit college to move to New York where she is looking for a modeling job
C)  A young man who has recently received his Ph.D.but who is driving a taxi because of an inability to find a teaching job
D)  All of the choices are correctE) All of the above
F) A) and C)

Question 10

According to many liberals,the Bureau of Labor Statistics

Accepted Answer

A)  overstates the number of employed and understates the unemployment rate.
B)  overstates the number of employed and overstates the unemployment rate.
C)  understates the number of employed and overstates the unemployment rate.
D)  understates the number of employed and understates the unemployment rate.E) A) and D)
F) B) and C)

Question 11

Imports tend to

Accepted Answer

A)  raise our rate of inflation.
B)  lower our rate of inflation.
C)  have no effect on our rate of inflation.D) B) and C)
E) All of the above

Question 12

If the cyclical unemployment rate were 4%,what is the most accurate statement that could be made about the overall unemployment rate?

Accepted Answer

A)  It is 9%.
B)  It is over 4%.
C)  It is less than 9%.
D)  It is more than 9%.E) A) and B)
F) A) and C)

Question 13

If people cannot find work and drop out of the labor force,they are classified as

Accepted Answer

A)  employed.
B)  unemployed.
C)  as part of the institutionalized population.
D)  discouraged workers.
E)  functionally unemployed.F) A) and E)
G) B) and D)

Question 14

The dividing line between a recession and a depression is

Accepted Answer

A)  unclear.
B)  a ten percent rate of unemployment.
C)  determined by government officials.
D)  set by law.E) A) and B)
F) A) and C)

Question 15

If the number of unemployed is greater than the number of employed,the unemployment rate is

Accepted Answer

A)  over 100%.
B)  more than 50%.
C)  less than 50%.
D)  None of the choices are correct.E) None of the above
F) A) and B)

Question 16

Which of the following statements is true?

Accepted Answer

A)  If the number of unemployed falls and the number of people in the labor force rises,the unemployment rate falls.
B)  Both liberals and conservatives feel that the official unemployment rate is too low.
C)  Greater participation by young people in the labor force tends to push the unemployment rate down.
D)  The unemployment rate for blacks is virtually the same as it is for whites.
E)  All of the statements are true.F) D) and E)
G) All of the above

Question 17

If we were to look at entire decades,the worst inflation was during the decade of the

Accepted Answer

A)  1950s.
B)  1960s.
C)  1970s.
D)  1980s.
E)  1990s.F) A) and D)
G) C) and D)

Question 18

About one worker in _____ is covered by a Cost of Living Adjustment Agreement (COLA) .

Accepted Answer

A)  two
B)  four
C)  seven
D)  tenE) B) and D)
F) A) and B)

Question 19

Which is the most accurate statement?

Accepted Answer

A)  The recession of 2001 was caused primarily by the terrorist attacks of 9/11.
B)  The recession of 2001 continued well into 2003.
C)  The recession of 2001 was caused exogenously.
D)  The recession of 2001 was caused endogenously.E) A) and C)
F) All of the above

Question 20

Statement I: Cyclical unemployment is the term given to workers who have been laid off because their skills are no longer in demand.
Statement II: At any given time about five percent of the labor force is frictionally unemployed.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.E) B) and D)
F) All of the above

Exam 10: Economic Fluctuations, unemployment, and Inflation

According to many liberals,the Bureau of Labor Statistics

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In a three-phase business cycle,the recovery phase is always followed immediately by ______.

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Statement I: Cyclical unemployment is the term given to workers who have been laid off because their skills are no longer in demand. Statement II: At any given time about five percent of the labor force is frictionally unemployed.

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Disinflation occurs when

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About one worker in _____ is covered by a Cost of Living Adjustment Agreement (COLA) .

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If we were to look at entire decades,the worst inflation was during the decade of the

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Business cycle troughs are always followed by the _____ phase.

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Which of the following statements is true?

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A person who is not in the labor force and not actively looking for a job is

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Suppose a person lost a factory job six months ago,spent 3 months in a fruitless search for work,and then stopped looking.In the collection of official statistics,such a person is considered

Correct AnswerverifiedShow Answer

Which is the most accurate statement?

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Which of the following people would be considered unemployed?

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Which of the following statements is true?

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Imports tend to

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If people cannot find work and drop out of the labor force,they are classified as

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The dividing line between a recession and a depression is

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If the number of unemployed is greater than the number of employed,the unemployment rate is

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-A trough occurs at point

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If the cyclical unemployment rate were 4%,what is the most accurate statement that could be made about the overall unemployment rate?

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Statement I: Our economy is expanding a majority of the time. Statement II: We have had only two recessions since 1945 that lasted over one year.

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