Chapter 9 example #48366

Wait unemployment and search unemployment are both types of: cyclical unemployment. hidden unemployment. frictional unemployment. structural unemployment.

Inflation affects: the level, but not the distribution, of income. the distribution, but not the level, of income. neither the level nor the distribution of income. both the level and the distribution of income.

A college graduate using the summer following graduation to search for a job would best be classified as: a part of frictional unemployment. not officially a member of the labor force. a part of structural unemployment. a part of cyclical unemployment.

Which of the following is correct? Unemployment rates for African-American and white workers are approximately the same. Teenagers experience approximately the same unemployment rates as do adults. The unemployment rates of men and women workers are roughly the same. Laborers are less vulnerable to unemployment than are professional workers.

In which of the following industries or sectors of the economy will business cycle fluctuations likely have the greatest effect on output? capital goods textile products military goods agricultural commodities

The phrase "too much money chasing too few goods" best describes: cost-push inflation. the inflation premium. the GDP gap. demand-pull inflation.

Assume the natural rate of unemployment in the U.S. economy is 5 percent and the actual rate of unemployment is 9 percent. According to Okun's law, the negative GDP gap as a percent of potential GDP is: 2 percent. 4 percent. 8 percent. 10 percent.

If the rate of inflation is 12 percent per year, the price level will double in about: 4 years. 6 years. 12 years. 10 years.

Inflation is undesirable because it: arbitrarily redistributes real income and wealth. invariably leads to hyperinflation. reduces everyone's standard of living. usually is accompanied by declining real GDP.

Cost-push inflation may be caused by: an increase in resource availability. a decrease in wage rates. a decline in per unit production costs. a negative supply shock.

If the unemployment rate is 9 percent and the natural rate of unemployment is 5 percent, then the: natural rate of unemployment will eventually increase. cyclical unemployment rate is 4 percent. cyclical unemployment rate and the frictional unemployment rate together are 5 percent. frictional unemployment rate is 5 percent.

Demand-pull inflation: occurs only when the economy has reached its absolute production capacity. is also called cost-push inflation. occurs when total spending exceeds the economy's ability to provide output at the existing price level. occurs when prices of resources rise, pushing up costs and the price level.

Alex works in his own home as a homemaker and full-time caretaker of his children. Officially, he is: in the labor force. not in the labor force. employed. unemployed.

Real income is found by: dividing the price index (in hundredths) by nominal income. multiplying nominal income by 1.03. dividing nominal income by 70. dividing nominal income by the price index (in hundredths).

Unanticipated inflation benefits debtors at the expense of creditors. True False