economics
Which type of unemployment increased the most during the 2007-2009 recession?
Frictional unemployment
What is one of the causes of frictional unemployment?
scarcity of information
An investment of $1,000 in the bank at an annual interest rate of 4% at the same time that prices rise by 2.5% generates a real return of:
1.5
If the adult population of a country is 200 million, 100 million are employed, and 10 million are unemployed, this country's labor force is:
110
From 2006 to 2016, the United States experienced average annual inflation of about:
2.1%.
Suppose the money supply equals $100 million, the average price level equals 40, and real GDP equals $50 million. Given this information, the velocity of money equals:
20
f the money supply in a country is $200 million, the velocity of money is 5, and real GDP is 250 million, the price level of the country must be:
4%
A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. What is this country's labor force participation rate?
67.7
(Table: Labor Data) According to the accompanying labor data, the labor force participation rate is:
75%
What is the labor force participation rate for a nation with an adult population of 20 million, 12 million employed workers, and 3 million unemployed workers?
75%
(Table: Employment, Unemployment, and Labor Force Participation) Refer to the table. What is the labor force participation rate of this country in 2010?
85%
(Table: Employment, Unemployment, and Labor Force Participation) Refer to the table. What is the employment rate of the country in 2010?
95%
Which of the following is TRUE of the natural unemployment rate?
It can change dramatically within a matter of months.
Which of the following does NOT raise structural unemployment?
active labor market policies
(Table: Anticipating Inflation) Using the inflation data in the table, assume that all loan contracts have fixed nominal interest rates of 10% and mature after 1 year. Which year did lenders gain relative to borrowers?
add 7% break even is 2004
quizlet economics What affects labor force participation rates?
demographics, tax structure, and technological advances such as the birth control pill
The quantity theory of money:
describes the general relationship between money, velocity, real output, and prices.
The basket of goods bought by the average consumer:
changing all the time
High rates of long-term unemployment correlate with high costs of hiring and firing.
false
If the price of gasoline increased from $2.50 per gallon in 2006 to $3.50 per gallon in 2010, during which time the CPI increased from 203.1 to 220.2, then we can conclude that the real price of gasoline declined from 2006 to 2010.
false
The GDP deflator measures the average price for a basket of goods and services bought by a typical consumer.
false
Although money is neutral in the short run, it's possible that changes in money supply can change real GDP in the long run.
false the true is reversed
The unemployment rate is defined as the percentage of the adult population without a job.
false..s It is the percentage of the labor force without a job.
In a nonrecession year, the majority of U.S. unemployment is:
frictional
The argument that "money is neutral in the long run" means that an increase in the money supply can:
increase real GDP only temporarily.
When workers lose their jobs and become officially unemployed, the unemployment rate:
increases
The quantity theory of money assumes that real GDP:
increases with the quantity of money in the economy.
Inflation hurts the economy because:
it affects the ability of market prices to send signals about the value of resources
Current forecasts say that mild inflation is expected next year. If, however, deflation occurs instead:
lenders on existing fixed rate loans will gain while borrowers will lose.
Money illusion is:
mistaking changes in nominal prices for changes in real prices.
Structural unemployment has been a more serious problem in Europe than in the United States because of:
more generous unemployment benefits.
Two of the challenging factors faced by the U.S. Bureau of Labor Statistics when computing the consumer price index are:
new goods and better-quality goods.
During the 1980s, a reduction in the marginal tax rate (the tax on additional income) was found to:
raise the female labor force participation rate.
What two components of the quantity theory of money are assumed to be stable over time?
real GDP and the velocity of money
The labor force participation rate responds to:
real GDP growth.
The Keynesian explanation for cyclical unemployment is:
that wage demands are too high relative to falling prices.
The consumer price index measures the:
the change in prices of a fixed market basket of goods and services from one period to anotheraverage price of all goods and services included in GDP.
Which price index measures the average price received by suppliers?
the consumer price index
What is the Fisher effect?
the tendency of nominal interest rates to rise with higher expected inflation rates
A decrease in the inflation rate from 10% to 3% implies that disinflation has occurred.
true
Employment-at-will tends to raise the unemployment rate.
true
Individuals who are structurally unemployed tend to be unemployed for long periods of time.
true
The inflation rate is equal to the rate of change of the price level.
true
To compare accurately the price of automobiles in 1950 and in 2010, we would need to calculate the real price of automobiles in 1950 and in 2010.
true
Which of the following tends to increase unemployment?
unemployment benefits, minimum wages, and labor unions
Deflation is best described as:
when the overall level of prices of goods falls