Question 1

A major cause of involuntary unemployment is

Accepted Answer

A)  A wage rate below equilibrium
B)  Not enough demand for labor
C)  Too much supply of labor
D)  Laziness
E)  A wage rate above equilibrium

Question 2

Full employment may be reached even though there is frictional and structural unemployment.

Accepted Answer

A) True 
 B)False

Question 3

The full-employment unemployment rate is

Accepted Answer

A)   0
B)   Inconsistent with price stability
C)   The rate that reflects cyclical unemployment
D)   10%
E)   None of the above

Question 4

Structural unemployment is a long run event for particular individuals.

Accepted Answer

A) True 
 B)False

Question 5

Economists in the 1960s believed that the Phillips curve relationship would

Accepted Answer

A)  Allow governments to end inflation
B)  Provide governments a means to control recessions
C)  Discourage imports
D)  Provide policies that would trade off unemployment for inflation
E)  None of the above

Question 6

The Following Questions Refer to the graph below. 1 to D2? A) An increase in investment B) A decrease in consumption C) An increase in imports D) An increase in saving E) All of the above" class="answers-bank-image d-inline" rel="preload" > 
-Which of the following would cause a shift from D1 to D2?

Accepted Answer

A)  An increase in investment
B)  A decrease in consumption
C)  An increase in imports
D)  An increase in saving
E)  All of the above

Question 7

An economy reaches full employment when there is no cyclical unemployment.

Accepted Answer

A) True 
 B)False

Question 8

The unemployment rate will not fall to zero because of

Accepted Answer

A)  Cyclical unemployment
B)  Frictional unemployment
C)  Welfare
D)  Voluntary unemployment
E)  All of the above

Question 9

As a group,women suffer from the highest unemployment ratE.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is a component of aggregate demand?

Accepted Answer

A)  Consumption
B)  Investment
C)  Government spending
D)  Exports and imports
E)  All of the above

Question 11

As an economy approaches full employment,real output declines.

Accepted Answer

A) True 
 B)False

Question 12

The effect of inflation on production and employment is known as

Accepted Answer

A)  An incomes policy
B)  The equity effects of inflation
C)  The efficiency effects of inflation
D)  The output effects of inflation
E)  Fiscal policy

Question 13

The marginal propensity to consume is

Accepted Answer

A)  Consumption divided by Income
B)  The change in consumption
C)  The change in consumption divided by the change in income
D)  Unaffected by changes in income
E)  All of the above

Question 14

An increase in trade deficit will increase unemployment in the U.S.

Accepted Answer

A) True 
 B)False

Question 15

The unemployment rate is the same for all demographic groups.

Accepted Answer

A) True 
 B)False

Question 16

The Following Questions Refer to the graph below. 0 to S1 B) S1 to S0 C) D0 to D2 D) D1 to D0 E) q1 to q0" class="answers-bank-image d-inline" rel="preload" > 
-Demand-pull inflation is illustrated by a movement from

Accepted Answer

A)  S0 to S1
B)  S1 to S0
C)  D0 to D2
D)  D1 to D0
E)  q1 to q0

Question 17

Technological change in an industry that historically required specific labor skills will lead to

Accepted Answer

A)  Frictional unemployment
B)  Structural unemployment
C)  Cyclical unemployment
D)  Seasonal unemployment
E)  No changes in unemployment

Question 18

Cyclical unemployment is due primarily to a decline in aggregate supply.

Accepted Answer

A) True 
 B)False

Question 19

Unemployment rates tend to rise when

Accepted Answer

A)  Inflation rates rise
B)  Aggregate demand is high
C)  The economy goes through an expansion
D)  There is a recession
E)  Interest rates are low

Exam 13: Unemployment and Inflation: Can We Find a Balance

Cyclical unemployment is due primarily to a decline in aggregate supply.

Correct Answer
verified

The Following Questions Refer to the graph below. -Which of the following would cause a shift from D¹ to D²?

Correct Answer
verified

The unemployment rate will not fall to zero because of

Correct Answer
verified

Structural unemployment is a long run event for particular individuals.

Correct Answer
verified

The effect of inflation on production and employment is known as

Correct Answer
verified

As a group,women suffer from the highest unemployment ratE.

Correct Answer
verified

A major cause of involuntary unemployment is

Correct Answer
verified

An economy reaches full employment when there is no cyclical unemployment.

Correct Answer
verified

The marginal propensity to consume is

Correct Answer
verified

The unemployment rate is the same for all demographic groups.

Correct Answer
verified

Economists in the 1960s believed that the Phillips curve relationship would

Correct Answer
verified

Which of the following is a component of aggregate demand?

Correct Answer
verified

As an economy approaches full employment,real output declines.

Correct Answer
verified

Technological change in an industry that historically required specific labor skills will lead to

Correct Answer
verified

An increase in trade deficit will increase unemployment in the U.S.

Correct Answer
verified

The Following Questions Refer to the graph below. -Demand-pull inflation is illustrated by a movement from

Correct Answer
verified

The full-employment unemployment rate is

Correct Answer
verified

Full employment may be reached even though there is frictional and structural unemployment.

Correct Answer
verified

Unemployment rates tend to rise when

Correct Answer
verified

Exam 13: Unemployment and Inflation: Can We Find a Balance

Cyclical unemployment is due primarily to a decline in aggregate supply.

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -Which of the following would cause a shift from D1 to D2?

Correct AnswerverifiedShow Answer

The unemployment rate will not fall to zero because of

Correct AnswerverifiedShow Answer

Structural unemployment is a long run event for particular individuals.

Correct AnswerverifiedShow Answer

The effect of inflation on production and employment is known as

Correct AnswerverifiedShow Answer

As a group,women suffer from the highest unemployment ratE.

Correct AnswerverifiedShow Answer

A major cause of involuntary unemployment is

Correct AnswerverifiedShow Answer

An economy reaches full employment when there is no cyclical unemployment.

Correct AnswerverifiedShow Answer

The marginal propensity to consume is

Correct AnswerverifiedShow Answer

The unemployment rate is the same for all demographic groups.

Correct AnswerverifiedShow Answer

Economists in the 1960s believed that the Phillips curve relationship would

Correct AnswerverifiedShow Answer

Which of the following is a component of aggregate demand?

Correct AnswerverifiedShow Answer

As an economy approaches full employment,real output declines.

Correct AnswerverifiedShow Answer

Technological change in an industry that historically required specific labor skills will lead to

Correct AnswerverifiedShow Answer

An increase in trade deficit will increase unemployment in the U.S.

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -Demand-pull inflation is illustrated by a movement from

Correct AnswerverifiedShow Answer

The full-employment unemployment rate is

Correct AnswerverifiedShow Answer

Full employment may be reached even though there is frictional and structural unemployment.

Correct AnswerverifiedShow Answer

Unemployment rates tend to rise when

Correct AnswerverifiedShow Answer

Correct Answer
verified

The Following Questions Refer to the graph below. -Which of the following would cause a shift from D¹ to D²?

Correct Answer
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