Macro Chapter 9 example #86214

Which of the following is not seen by economists as an underlying cause of business cycle fluctuations?

Okun's law:

If potential GDP is $400 billion and there is a negative GDP gap of $15 billion, real GDP is:

The natural rate of unemployment is the:

If the unemployment rate is 9 percent and the natural rate of unemployment is 5 percent, then the:

Inflation means that:

Consider This) The main point of the Consider This box on clipping coins is that:

Suppose that lenders want to receive a real rate of interest of 5 percent, and that they expect inflation to remain steady at 2 percent in the coming years. Based on this, lenders should charge a nominal interest rate of:

Inflation affects:

(Consider This) Which of the following best explains why unemployment rises significantly during a recession?

The GDP gap measures the difference between:

The labor force includes:

Alex works in his own home as a homemaker and full-time caretaker of his children. Officially, he is:

Suppose the CPI was 110 last year and is 116 this year. Instructions: Round your answers to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. What is this year's rate of inflation? ________ percent. b. In contrast, suppose that the CPI was 110 last year and is 105 this year. What is this year's rate of inflation? _______ percent. c. What term do economists use to describe this second outcome? . ________

Suppose there are 5 million unemployed workers seeking jobs. After a period of time, 1 million of them become discouraged over their job prospects and cease to look for work. As a result of this, all else equal, the official unemployment rate would:

The unemployment rate that is consistent with full employment is known as ______.

Rising per-unit production costs are most directly associated with:

(Consider This) Some economists believe that modest inflation, say 2-3 percent, might help reduce unemployment during recessions. What is the argument of economists who reject this idea?

Demand-pull inflation:

In which phase of the business cycle will the economy most likely experience rising real output and falling unemployment rates?

Recurring upswings and downswings in an economy's real GDP over time are called

Cost-push inflation occurs when there is

Most economists agree that the immediate cause of most business cycle variation is:

If the consumer price index falls from 120 to 116 in a particular year, the economy has experienced:

Full-employment output is also called:

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:

The phase of the business cycle in which real GDP declines is called:

If actual GDP is less than potential GDP:

Real income is found by:

Who is least likely to be hurt by unanticipated inflation?

The unemployment rate is the:

At the economy's natural rate of unemployment:

Cyclical unemployment results from:

A country's annual growth rates over a 10-year period are shown in the following table. a. What was the country's trend rate of growth over this period? ______percent. b. Which set of years most clearly demonstrates an expansionary phase of the business cycle? Years _______. Which set of years best illustrates a recessionary phase of the business cycle? Years _______ through ______

A large negative GDP gap implies:

Which of the following would most likely move the economy into a recession in the short term?

In which of the following cases would real income rise?

The industries or sectors of the economy in which business cycle fluctuations tend to affect output most are:

The natural rate of unemployment is:

An unexpected increase in total spending will cause an increase in GDP:

If actual GDP is $500 billion and there is a negative GDP gap of $10 billion, potential GDP is:

(Last Word) In response to the Great Recession, Congress extended the maximum period for drawing unemployment benefits from 26 to 99 weeks. While this was done to help workers financially and to help the economy by stimulating demand, it had what unintended consequence?

In the depth of the Great Depression, the unemployment rate in the United States was about:

(Last Word) The Great Recession of 2007-2009 significantly increased:

The United States' economy is considered to be at full employment when:

(Consider This) If wages were more downwardly flexible, then we would expect:

For every 1 percentage point that the actual unemployment rate exceeds the natural rate, a 2 percentage point negative GDP gap occurs. This is a statement of:

The production of durable goods varies more than the production of nondurable goods because:

Answer the question on the basis of the following information about a hypothetical economy: Refer to the given information. The unemployment rate is:

In which of the following industries or sectors of the economy will business cycle fluctuations likely have the greatest effect on output?

Cost-of-living adjustment clauses (COLAs):

The type of unemployment associated with recessions is called:

A recession is defined as a period in which:

Jimmer's nominal income will go up by 10 percent next year. Inflation is expected to be - 2 percent next year. By approximately how much will Jimmer's real income change next year?

Answer the question on the basis of the following information about a hypothetical economy: Refer to the given information. If the members of the underground economy are presently counted as part of the unemployed when in fact they are employed, the official unemployment rate is overstated by about:

A lender need not be penalized by inflation if the:

In 2010, Tatum's nominal income rose by 4.6 percent and the price level rose by 1.6 percent. We can conclude that Tatum's real income:

Part-time workers who want full-time work are counted as:

Susie has lost her job in a Vermont textile plant because of import competition. She intends to take a short course in electronics and move to Oregon, where she anticipates that a new job will be available. We can say that Susie is faced with:

Suppose the nominal annual interest rate on a two-year loan is 8 percent and lenders expect inflation to be 5 percent in each of the two years. The annual real rate of interest is:

Assume the following data for a country: a. What is the size of the labor force? ______million. b. What is the official unemployment rate? _____ percent.

What is the primary reason that changes in total spending lead to cyclical changes in output and employment?

The phase of the business cycle in which real GDP is at a minimum is called:

Place the phases of the business cycle in order.

Label each of the following scenarios as either frictional unemployment, structural unemployment, or cyclical unemployment. a. Tim just graduated and is looking for a job:____. b. A recession causes a local factory to lay off 30 workers:_____. c. Thousands of bus and truck drivers permanently lose their jobs when driverless, computer-driven vehicles make human drivers redundant:_____. d. Hundreds of New York legal jobs permanently disappear when a lot of legal work gets outsourced to lawyers in India: _______.

Answer the question on the basis of the following information for a specific year in a hypothetical economy for which Okun's law is applicable: Refer to the given data. The size of the negative GDP gap as a percent of potential GDP for the economy is:

Official unemployment statistics:

If the Consumer Price Index rises from 300 to 333 in a particular year, the rate of inflation in that year is:

Unlike demand-pull inflation, cost-push inflation:

The annual rate of inflation can be found by subtracting:

Cost-push inflation:

As it relates to economic growth, the term long-run trend refers to:

Structural unemployment:

Inflation initiated by increases in wages or other resource prices is labeled:

During a severe recession, we would expect output to fall the most in:

According to the Bureau of Labor Statistics, to be officially unemployed a person must:

Answer the question on the basis of the following information for a specific year in a hypothetical economy for which Okun's law is applicable: Refer to the given data. The amount of output being forgone by the economy is:

(Last Word) Which of the following best describes why unemployment rates remained high well after the end of the Great Recession of 2007-2009?

Most economists agree that the immediate determinant of the volume of output and employment is the:

Answer the question on the basis of the following information for a specific year in a hypothetical economy for which Okun's law is applicable: Refer to the given data. If the unemployment rate in the economy fell to 6 percent, we could conclude that:

Which of the following types of unemployment is directly associated with insufficient overall demand for goods and services?

As applied to the price level, the "rule of 70" indicates that the number of years required for the price level to double can be found by:

(Consider This): Some economists believe that modest inflation, say 2-3 percent, might help reduce unemployment during recessions. Which of the following best explains their argument?

The aggregate cost of unemployment can be measured by the:

The presence of discouraged workers:

Unanticipated inflation:

Answer the question on the basis of the following information about a hypothetical economy: Refer to the given information. The rate of inflation:

Dr. Homer Simpson, an economics professor, decided to take a year off from teaching to run a commercial fishing boat in Alaska. That year, Professor Simpson would be officially counted as:

During a period of hyperinflation:

Suppose your nominal income rose by 6.3 percent and the price level rose by 2.8 percent in some year. a. By what percentage would your real income (approximately) increase? _____percent. b. If your nominal income rose by 3.8 percent and your real income rose by 1.3 percent in some year, what must have been the (approximate) rate of inflation? _____ percent.

Answer the question on the basis of the following information about the hypothetical economy of Scoob. All figures are in millions. Refer to the given information. The unemployment rate in Scoob is:

Recently a labor union argued that the standard of living of its members was falling. A critic of the union argued that this could not possibly be true because the union had been acquiring increases in the nominal incomes of its members through collective bargaining. Is the critic correct?

In the United States, business cycles have occurred against a backdrop of a long-run trend of:

Most economists agree that the immediate cause of the large majority of cyclical changes in the levels of real output and employment is unexpected changes in:

The phrase "too much money chasing too few goods" best describes:

Real income can be determined by:

Suppose there are 10 million part-time workers and 90 million full-time workers in an economy. Five million of the part-time workers switch to full-time work. As a result:

Given the annual rate of inflation, the "rule of 70" allows one to:

A college graduate using the summer following graduation to search for a job would best be classified as:

Answer the question on the basis of the following information about the hypothetical economy of Scoob. All figures are in millions. Refer to the given information. If the natural rate of unemployment in Scoob is 5 percent, then: