Ch 9 Business Cycles, Unemployment, & Inflation
6. In which phase of the business cycle will the economy most likely experience rising real output and falling unemployment rates? A. Expansion A. Recession B. Peak C. Trough
A
2. The rate of unemployment when the economy is at its potential output is called the: A. full-employment rate of unemployment. A. natural rate of unemployment. B. structural rate of unemployment. C. frictional rate of unemployment.
B
1. A nation has a population of 300 million people. Of these, 80 million are retired, in the military, in institutions, or under sixteen years old. There are 210 million who are employed and 10 million who are unemployed. What is the unemployment rate? A. 3.3 percent B. 3.6 percent C. 4.5 percent D. 5.2 percent
C
3. Kevin has lost his job in an automobile plant because of the use of robots for welding on the assembly line. Kevin plans to go to technical school to learn how to repair microcomputers. The type of unemployment Kevin is faced with is: A. Cyclical A. Frictional B. Structural C. Natural
C
4. If the annual inflation rate is 5 percent a year, about how many years will it take for the price level to double? A. 10 years A. 12 years B. 14 years C. 16 years
C
9. If actual GDP is $340 billion and there is a positive GDP gap of $20 billion, potential GDP is: A. $360 billion. A. $660 billion. B. $320 billion. C. $20 billion.
C
5. The industries or sectors of the economy in which business cycle fluctuations tend to affect output the most are: A. military goods and capital goods. A. services and nondurable consumer goods. B. clothing and education. C. capital goods and durable consumer goods.
D
7. During periods of full employment the: A. burden of unemployment is quite evenly distributed among males and females, African-Americans and whites, and young and old workers. A. unemployment rate for teenagers is below the rate for the labor force as a whole. B. unemployment rate for women is considerably lower than that for men. C. unemployment rate for African-Americans is about twice the rate for whites.
D
8. A college graduate using the summer following graduation to search for a job would best be classified as: A. not officially a member of the labor force. A. a part of structural unemployment. B. a part of cyclical unemployment. C. a part of frictional unemployment.
D