Test 2 set 2
Suppose that dental hygienists are unionized in the eastern region of the country but not in the western region. If the unionized workers in the eastern region abolished their unions, employment
of dental hygienists in the eastern region would rise, but wages of dental hygienists in the eastern region would fall.
When the Fed buys government bonds
the money supply increases and the federal funds rate decreases.
Refer to Table 28-6. What is the U-1 measure of labor underutilization?
1.6%
Suppose that some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were employed?
31.74 million
Suppose that the adult population is 4 million, the number of unemployed is 0.25 million, and the labor-force participation rate is 75%. What is the unemployment rate?
8.3%
Refer to Table 28-6. What is the U-6 measure of labor underutilization?
9.0%
Suppose that the adult population is 6 million, the number of employed is 3.8 million, and the labor-force participation rate is 70%. What is the unemployment rate?
9.5%
Which of the following would decrease the value of money?
Money demand exceeds money supply
Some people who are employed or who are not making serious effort to find employment will report themselves as unemployed. Some people who want to find work will be counted as out of the labor force.
The first fact tends to make the reported unemployment rate higher than otherwise, while the second fact tends to make the reported unemployment rate lower than otherwise.
If the Fed increases the reserve ratio from 5 percent to 12.5 percent, then the money multiplier
decreases from 20 to 8
In a system of 100-percent-reserve banking, the purpose of a bank is to
give depositors a safe place to keep their money
Right-to-work laws
give workers in a unionized firm the right to choose whether to join the union
When there is inflation, the number of dollars needed to buy a representative basket of goods
increases, and so the value of money falls.
The Bureau of Labor Statistics produces data on unemployment
monthly
Suppose the price level rises, but the number of dollars you are paid per hour stays the same. This means that your
real wage is lower
According to the article "Why Gold?', silver may be used as money. One problem with using silver as money is that
silver tarnishes over time
The inflation tax refers to
the revenue a government creates by printing money