Macro example Test Chapter 9

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

a part of frictional unemployment

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

military goods and capital goods

If actual GDP is $340 billion and there is a positive GDP gap of $20 billion, potential GDP is what?

$320 billion

A nation has a population of 300 million people. Of these, 80 million are retired, in the military, in institutions, or under 16 years old. There are 210 million who are employed and 10 million who are unemployed. What is the unemployment rate?

4.5%

The rate of unemployment when the economy is at its potential output is called what?

Natural rate of unemployment

In which of the following cases would real income rise?

Nominal income rises by 2 percent, and the price level remains unchanged

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 what?

Structural

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

Trough