Macroeconomics
When the Fed buys securities from a bank, ______.
A the bank's reserves invrease but its deposits do not change
The unemployment that arises from normal labor turnover—from people entering and leaving the labor force— and from the ongoing creation and destruction of jobs is ______ unemployment.
A. Frictional
Once a month, the Bureau of ______ Statistics calculates the Consumer Price Index, which is a measure of the ______ consumers for a fixed basket of consumer goods and services.
A. Labor; average of the prices paid by urban
Choose the statement that is incorrect.
A. Liquid asset have a higher interest rate than securities.
The main sources of bias in the CPI are ______.
A. New good bias, quality change bias, commodity substitution bias, and outlet substitution bias.
______ sees the economy as a perpetual motion machine.
A. New growth theory
How can the change in U.S. wealth differ from U.S. saving?
A. The change in wealth includes changes in the prices of assests
How can the change in U.S. wealth differ from U.S. saving?
A. The change in wealth includes changes in the prices of assets owned and saving excludes these items.
The fundamental precondition for labor productivity growth is _______.
A. The incentive system created by firms, property rights, and money
Choose the statement that is incorrect.
A. The nominal interest rate is the real interest rate adjusted to the remove the effects of inflation on the buying power of money.
Choose the statement about the Fed that is incorrect.
A. The policy decisions of the Federal Open Market Committee are implemented each month by a different Federal Reserve Bank.
Choose the statement about the Fed that is incorrect.
A. The policy decisions of the federal open market commite are implemented each month by a different federal reserve bank
Choose the statement about an increase in the population that is incorrect.
A. The production function shifts upward.
Suppose that Sara withdraws $1,000 from her savings account at the Lucky S&L, keeps $50 in cash, and deposits the balance in her checking account at the Bank of Illinois. The immediate change is ______ in M1 of $1,000 and ______ in M2.
A. an increase; no change
An increase in the population ______ the real wage rate and ______ the equilibrium quantity of labor.
A. decreases; increases
In the short run, the quantity of real money and real GDP are given and the ______ adjusts to achieve equilibrium. In the long run, supply and demand in the loanable funds market determines the ______. In the long run, the price level adjusts to make the quantity of real money supplied equal the quantity demanded.
A. interest rate; real interest rate Blue answer is bottom statement ( price level)
The natural unemployment rate _______.
A. is the unemployment rate at full employment
Suppose the Fed increases the quantity of money. In the long run, supply and demand in the ______ market determines the real interest rate. The ______ adjusts to make the quantity of real money supplied equal to the quantity demanded.
A. loanable funds; price level
If we count marginally attached workers as unemployed ______.
A. no change occurs in the employment to population ratio
An increase in the population ______.
A. shifts the supply of labor curve rightward and creates a movement along the production function
An open market operation is ______.
A. the purchase or sale of securities by the Federal Reserve System in the loanable funds market.
An increase in labor productivity ______.
B shifts the demand for labor curve rightward and the production function upward
An increase in labor productivity results in all of the following except ______.
B A decrease in potential GDP per hour of labor because of diminishing returns.
The money multiplier is the ratio of the change in the quantity of ______ to the change in the quantity of ______.
D. money; monetary base
Suppose that in 2014 China's real GDP is growing at 1010 percent a year and its population is growing at 3.03.0 percent a year. If these growth rates continue, then China's real GDP per person in ______ will be twice what it is in 2014.
D. 2024
Choose the statement about money that is incorrect.
D. A work of art is an example of money because it can act as a store of value.
In the United States, the CPI basket consists of items that ______ . ______ has the greatest weight in the CPI basket.
D. An average urban household buys; Housing
n the United States, the CPI basket consists of items that ______ . ______ has the greatest weight in the CPI basket.
D. An average urban household buys; Housing
The reference base period for the CPI is 1982-1984. In AprilApril 2014, the CPI was 237.1237.1. This number tells us that the ______ of the prices paid by urban consumers for a fixed basket of consumer goods and services was ______ .
D. Average. 137.1 percent higher in April 2014 than the average of 1982-1984
Growth rates are calculated in a similar manner for all variables. Real GDP growth rate = [(Real GDP in ______ yearminus−Real GDP in ______ year) divided by ÷Real GDP in ______ year ] times ×100.
D. Current; previous; previous
The supply of loanable funds is influenced by all of the following except ______.
D. Expected profit
The liabilities of the Fed are ______, and these liabilities along with ______ make up the monetary base.
D. Federal Reserve notes held by households and businesses and reserves of depostiary institutions; coins issued by the Treasury.
Choose the statement that is incorrect.
D. If a finacial institutions net worth is positive, the institution must be solvent and liquid.
Choose the statement that is incorrect.
D. If a financial institution's net worth is positive, the institution must be solvent and liquid.
The bias in the CPI is a problem because ______ .
D. It distorts wage agreements linked to the CPI
Choose the statement that is incorrect.
D. Labor hours are all equally productive
Choose the statement that is incorrect.
D. Most economists believe that the Ricardo effect holds in the loanable funds market.
Choose the statement about the Consumer Price Index that is incorrect. A. The CPI is calculated monthly. B. The CPI is a measure of the average of the prices paid by urban consumers for a fixed basket of consumer goods and services. C. The CPI is measured by the Bureau of Labor Statistics. D. The CPI is defined to equal 1.00 for a period called the reference base period.
D. The CpI is defined to equal 1.00 for a period called the reference base period.
The price level is ______ A. the average level of prices paid by urban consumers for all goods excluding food and energy B. equal to the inflation rate C. the average level of prices paid by urban consumers D. the average level of prices, and the value of money
D. The average level of prices, and the value of money
All of the following statements are included in new growth theory except ______.
D. The forces of competition destroy incentives to make new discoveries
The CPI tells us ______.
D. The price level in a given period expressed as a percentage of the price level in the base period, which is by definition equal to 100.
Choose the correct statement. A. The CPI inflation rate is always greater than the core inflation rate. B. The inflation rate is the annual percentage change in the price level. .C. By definition, the inflation rate is always positive. D. The core inflation rate is always greater than the CPI inflation rate.
B. The inflation rate is the annual percentage change in the price level
Choose the statement that is incorrect.
B. A government budget surplus competes with investments for funds.
A mortgage is _______.
B. A legal contract that gives ownership of a home to the lender in the event that the borrower fails to meet the agreed loan payments (repayments and interest)
Choose the statement that is incorrect. . An unexpected inflation or deflation redistributes income and wealth. B. An unexpected inflation or deflation has no effect on the economy. This is the correct answer.C. An unexpected inflation or deflation diverts resources from production. D. An unexpected inflation or deflation brings lower real GDP and employment
B. An unexpected inflation or deflation has no effect on the economy.
Choose the statement that is incorrect.
B. Classical growth theory tells us that technological change induces a level of saving and investment that makes capital per hour of labor grow indefinitely.
Choose the statement that is incorrect.
B. Coins, which are issued by the Treasury are an asset of the Fed and a component of the monetary base.
Choose the statement that is incorrect.
B. Deposits are not money because you cannot settle a debt with a deposit.
Choose the statement that is incorrect.
B. In the united states in 2009, 22 million fewer people had jobs than in 1989.
Suppose the Fed increases the quantity of money. In the long run, supply and demand in the ______ market determines the real interest rate. The ______ adjusts to make the quantity of real money supplied equal to the quantity demanded.
B. Loanable funds; price level
Unemployment arises for all of the following reasons except ______. A. people leave their jobs and spend time searching for another job that better suits their abilities B. people leave the labor force C. firms close, people lose their jobs and search for new jobs D. students enter the labor force to search for a job
B. People leave the labor force
On average in the United States, the inflation rate and the money growth rate minus the real GDP growth rate ______.
B. Rise and fall together
Choose the statements concerning neoclassical growth theory that are true. 1. Neoclassical growth theory implies that growth rates and income levels per person around the globe will diverge.Neoclassical growth theory implies that growth rates and income levels per person around the globe will diverge. nothing 2. Technological change results from the choices people make in the pursuit of profit.Technological change results from the choices people make in the pursuit of profit. nothing 3. Technological change results from chance.Technological change results from chance. nothing 4. Economic growth will stop if technology stops advancing.Economic growth will stop if technology stops advancing. nothing
B. Statements 3 and 4 are correct.
A central bank is ______. The central bank in the United States is the ______.
B. a bank's bank and a public authority that regulates a nation's depositary institutions and conducts monetary policy; federal reserve system.
During the 100 years from 1914 to 2014, real GDP per person in the United States grew at ______.
B. an average of 2 percent a year
The deposits of the following three types of depository institutions make up the nation's money: ______.
B. commercial banks; thrift instituitons, and money market mutual funds
An electrician who is laid off because the economy is in a recessionAn electrician who is laid off because the economy is in a recession experiences ______.
B. cyclical unemployment
The gap between real GDP per person in the United States and Hong Kong has ______ since 1960. During this period, the growth rate of real GDP per person in the United States has been ______ than in Hong Kong.
B. decreased; slower
An increaseAn increase in expected future income ______
B. decreasesthe supply of loanable funds today because households with larger expected future income will save less today
The ratio of reserves to deposits that a bank plans to hold is its ______. If a bank has $10 million in actual reserves and $8 million in desired reserves, then it has ______.
B. desired reserve ratio; excess reserves
Potential GDP is ______.
B. determined by the full-employment quantity of labor.
The Bank of America's total assets ______ and its total liabilities ___
B. do not change; do not change
A depository institution takes deposits from ______ and earns most of its income by _______.
B. households and firms; making loans and buying securities that earn a higher interest rate than that paid to depostiors
Potential GDP ______ and potential GDP per hour of labor ______.
B. increases; decreases
An increase in real GDP ______ the demand for money and financial innovation ______.
B. increases; might increase the demand for some types of deposits and decrease demand for others
The three main types of markets for financial capital are _______.
B. loan markets, bond markets, and stock markets
The money multiplier is the ratio of the change in the quantity of ______ to the change in the quantity of ______.
B. money; monetary base
Rapid inflation in Brazil in the early 1990s caused the cruzerio to lose its ability to function as money. Which of the following commodities do you think would most likely have taken the place of the cruzeiro in the Brazilian economy?
B. packs of cigarettes because they are a good medium of exchange
Between 1914 and 2014, the average growth rate of real GDP per person in the United States was 2 percent a year. During this period, ______ grew at a faster rate than ______.
B. real GDP; the population
An increase in the population ______.
B. shifts the supply of labor curve rightward and creates a movement along the production function
Choose the statement that is incorrect.
B. the presence of a banking system in Britain in the middle 1700s started the Industrial revolution.
Choose the statement about an increase in the population that is incorrect.
B. the production function shifts upward.
For a given increase in the monetary base, ______.
B. the resulting increase in M2 is greater than the resulting increase in M1.
All of the following statements are correct except _______.
B. the return to full employment in an expansion phase of the business cycle is economic growth.
An economy is at full employment when-----
B. there is no cyclical unemployment
When the Fed buys securities from a bank, ______.
B. the bank's reserves increase but its deposits do not change
he CPI basket consists of items that fill in (answer: urban) households buy. The CPI places more weight on _______ than on _______.
B. transportation ; medical care
CPI = ______. A. [(Cost of CPI basket at base-period pricesminus−Cost of CPI basket at current-period prices) divided by ÷Cost of CPI basket at current-period prices] times ×100 B. (Cost of CPI basket at current-period prices divided by ÷Cost of CPI basket at base-period prices) times ×100 C. [(Cost of CPI basket at current-period pricesminus−Cost of CPI basket at base-period prices) divided by ÷Cost of CPI basket at current-period prices] times ×100 D. (Cost of CPI basket at base-period prices divided by ÷Cost of CPI basket at current-period prices) times ×100
B.Cost of CPI basket at current-period prices divided by ÷Cost of CPI basket at base-period prices) times ×100
Money serves as a ______.
B.medium of exchange, which means that it is generally accepted in exchange for goods and services Your answer is correct.C.
Some unemployment is unavoidable because ______. A. often people become discouraged workers B. people are making transitions through the stages of life and businesses are making transitions .C. many part-time workers would like to have full-time work D. many people in the working-age population attend school and are unemployed
B.people are making transitions through the stages of life and businesses are making transitions
A government budget surplus occurs, which increases the supply of loanable funds. The real interest rate ______, household saving ______,
Blue answer: ( Supply of) D. Falls; decreases and investment increases
A government budget surplus occurs, which increases the ___________ loanable funds. The real interest rate ______, household saving ______,
Blue answer: (supply of) C. falls; decreases and investment increases
Upper A decreaseA decrease in current income taxes ______ the supply of loanable funds today because it ______.
C increases; increases. disposable income, which encourages greater saving
Choose the correct statement.
C. Commercial banks are financial institutions that accept deposits, provide payment services, and make loans to firms and households.
Choose the correct statement.
C. Commercial banks are financial institutions that accept deposits, provide payment services, and make loans to firms and households.
In January 2017January 2017, the U.S. unemployment rate LOADING... was 4.84.8 percent. In January 2018January 2018, the unemployment rate was 4.14.1 percent. Assuming that the labor force remained constant between January 2017January 2017 and January 2018January 2018, then unemployment _______.
C. Decreased
Choose the correct statement
C. Deposits are money, checks are not money, and credit cards are not money
I = ______.
C. S+ (T-G)+(M-X)
Choose the correct statements. 1. The fluctuating unemployment over the business cycle is cyclical unemployment.The fluctuating unemployment over the business cycle is cyclical unemployment. nothing 2. The unemployment that arises from normal labor turnover is frictional unemployment.The unemployment that arises from normal labor turnover is frictional unemployment. nothing 3. The unemployment that arises when changes in technology or international competition change the skillsThe unemployment that arises when changes in technology or international competition change the skills needed to perform jobs or change the locations of jobs is cyclical unemployment.needed to perform jobs or change the locations of jobs is cyclical unemployment. 4. The unemployment that arises from normal labor turnover is structural unemployment.The unemployment that arises from normal labor turnover is structural unemployment. nothing
C. Statements 1 and 2 are correct
Choose the statement that is incorrect. A. Close to a third of federal government outlays are linked directly toClose to a third of federal government outlays are linked directly to the CPIthe CPI. B. Upper A wage contract linked to the CPI gives the workers more real income than the firmA wage contract linked to the CPI gives the workers more real income than the firm intendedintended. C. The bias in the CPI decreases government outlaysThe bias in the CPI decreases government outlays. .D. The bias in the CPI distorts privateThe bias in the CPI distorts private contractscontracts.
C. The bias in the CPI decreases government outlays.
One of the Fed's main policy tools is ______.
C. The last resort loan, which means that if a bank is short of reserves it can borrow from the Fed
A mortgage is _______.
C. a legal contract that gives ownership of a home to the lender in the event that the borrower fails to meet the agreed loan payments (repayments and interest)
Labor supply growth is influenced by all of the following except_______.
C. changes in labor productiviy
As a result of financial innovation, ______ have become ______.
C. checking deposits at thrift institutions; an increasing percentage of M1.
Depository institutions provide four benefits, which are ______.
C. creating liquidity, lowering the cost of borrowing, lowering the cost of monitoring borrows, and pooling risk
Choose the statement that is incorrect.
C. each addition hour of labor increases real GDP by successively larger amounts.
According to new growth theory, ______.
C. growth can persist indefinitely
The aggregate production function is the relationship that tells us ______, when all other influences on production remain the same.
C. how real GDP changes as the quantity of labor changes.
The fundamental source of labor productivity growth is ______.
C. human capital
Money serves as a ______.
C. medium of exchange; which means that it is generally accepted in exchange for goods and services
Assume that the preconditions for labor productivity growth are in place. The pace of labor productivity growth is influenced by all of the following except ______.
C. population growth
By measuring ______, we can see that the economy of Singapore has caught up to and surpassed the economy of the United States, but that the economies of Central and South America have not.
C. real GDP per person
Choose the statement about growth in labor productivity that is incorrect.
C. the demand for labor increases, the production function does not change, but a movement occurs along the production function.
Choose the statement that is incorrec
C. the demand for labor is the relationship between the quanity of labor demanded and the money wage rate.
Economic growth is _______.
C. the expansion of production possibilities.
When the price of an asset rises, ______.
C. the interest rate falls
An open market operation is ______
C. the purchase or sale of securities by the Federal Reserve System in the loanable funds market
Choose the statement that is incorrect.
C. the return to full employment in an expansion phase of the business cycle is economic growth.
The two broad sources of potential GDP growth are growth of ______ and growth of ______.
C. the supply of labor; labor productivity
Cindy takes a summer job painting houses. During the summer, she earns an after-tax income of $3 comma 5003,500 and she spends $1 comma 5001,500 on living expenses. What was Cindy's saving during the summer?
Cindy's saving during the summer was $2,000.
Choose the statement that is incorrect. A. In 1933 comma 25 percent of the labor force was unemployedIn 1933, 25 percent of the labor force was unemployed. .B. The 1930 s were and remain the longest and worst period of high unemployment in historyThe 1930s were and remain the longest and worst period of high unemployment in history. C. The Great Depression began in October 1929The Great Depression began in October 1929. D. The United States and Great Britain were the only countries who suffered in the Great Depression.
D.
The quantity of labor demanded is the number of labor hours ____________________________ during a given period. The quantity of labor supplied is the number of labor hours ___________________________________ during a given period. The _______ wage rate adjusts to bring the labor market to equilibrium.
first : hired by all the firms in the economy second: That all the households in the economy plan to work third: real
What are the three sources of global investment funds? (Separate with a comma, no plurals or abbreviations.)
household saving, government budget surplus, borrowing from rest of world
The demand for money is the relationship between the quantity of real money demanded and the nominal interest rate when all other influences on the amount of money that people wish to hold remain the same. When the nominal interest rate rises, the opportunity cost of holding money ______ and the quantity of real money demanded ______.
nominal interest rate = blue answer a. rises, decreases
The Rule of 70 states that the number of years it takes for the level of any variable to ______ is approximately ______.
A. double; 70 divided by the annual percentage growth rate of the variable
Choose the statement that is incorrect.
D. The unemployment rate includes all underutilized labor.
Choose the statement that is incorrect.
D. a bias in the CPI gives workers with wage contracts linked to the CPI less real income than the firm intended.
A central bank is ______. The central bank in the United States is the ______.
D. a bank's bank and a public authority that regulates a nation's depository institutions and conducts monetary policy; Federal Reserve System
Suppose the Fed sells $50 million of government securities to the Bank of America. The Fed's total assets ______ and its total liabilities ______.
D. decrease by $50 million; decrease by $50 million
When the unemployment rate is less than the natural unemployment rate, real GDP is ______ than potential GDP and the output gap is ______.
D. greater; positive
In neoclassical growth theory, ______.
D. growth will stop if technology stops advancing.
When the unemployment rate ______ the natural unemployment rate, real GDP ______ potential GDP.
D. is less than; is greater than
According to new growth theory, ______ experience diminishing returns.
D. knowledge is capital that does not
Choose the statement that is incorrect.
D. money market mutual funds represent 13 percent of M1.
Between 1960 and 2010, the gap between real GDP per person in the United States and real GDP per person in Japan ______.
D. narrowed
Convergence between real GDP per person in the United States and Japan was relatively ______ during the 1960s; convergence has recently been ______.
D. rapid; decreasing
Real GDP per person grows when ______.
D. real GDP grows at a faster rate than the population grows.
The demand for labor is the relationship between the quantity of labor demanded and the ______. The supply of labor is the relationship between the quantity of labor supplied and the ______.
D. real wage rate; real wage rate
A ______ is a depository institution that accepts savings deposits and makes mostly home-purchase loans. A ______ is a depository institution owned by a social or economic group such as a firm's employees that accepts savings deposits and makes mostly personal loans.
D. savings bank; credit union
An increase in labor productivity ______.
D. shifts the demand for labor curve rightward and the production function upward.
When cyclical unemployment increases and other things remain the same, ______.
D. the natural unemployment rate does not change
International evidence shows us that ______.
D. there is a general tendency for money growth and inflation to be correlated but the quantity theory does not predict inflation precisely.
Suppose that potential GDP and the velocity of circulation are constant. What is the change in the price level in the long run if the quantity of money increases by 1 percent a year?
If the quantity of money increases by 1 percent a year, in the long run the change in the price level is 1 percent a year.
A typical family on Sandy Island consumes only juice and cloth. Last year, which was the base year, the family spent $21 on juice and $6 on cloth. In the base year, juice was $3 a bottle and cloth was $3 a length. This year, juice is $9 a bottle and cloth is $6 a length. What is the CPI basket? What is the CPI and the inflation rate in the current year?
The CPI basket is 7 bottles of juice and 2 lengths of cloth. The CPI in the current year is 277.8 >>> Answer to 1 decimal place. The inflation rate in the current year is 177.8 percent. >>> Answer to 1 decimal place.
The bank plans to hold $3 for every $100 in deposits. The bank holds actual reserves actual reserves of 19,000 and desired reserves desired reserves of $15,000. What is the bank's desired reserve ratio and its excess reservesexcess reserves? >>> Answer to 2 decimal places.
The bank's desired reserve ratio is 3 percent. The banks excess excess reserve sare $4000
The Bureau of Labor Statistics reported the following data for January 2018January 2018. Labor force LOADING... 161 comma 115161,115 Employed LOADING... 154 comma 430154,430 Working-age population LOADING... 256 comma 780256,780 Use the above data to calculate for January 2018January 2018:
Unemployment rate 4.14.1 percent Labor force participation rate 62.762.7 percent Employment to population ratio 60.160.1 percent
In the short run, the quantity of real money and real GDP are given and the ______ adjusts to achieve equilibrium. In the long run, supply and demand in the loanable funds market determines the ______. In the long run, the price level adjusts to make the quantity of real money supplied equal the quantity demanded.
blue answer : ( price level) ( 2nd answer) multiple choice: C. interest rate; real interest rate
The fundamental precondition for labor productivity growth is the incentive system created by all of the following except ______.
C. Population growth
Choose the statement that is incorrect
C. President Roosevelt's New Deal minimized the role of government in economic life.
Suppose the Fed buys $50 million of government securities from the Bank of America. The Fed's total assets ______ and its total liabilities ______. The Bank of America's total assets ______ and its total liabilities ______.
1: D. increase by $50 million; increase by $50 million 2: D. do not change; do not change
One of the Fed's main policy tools is ______.
A. the last resort loan, which means that if a bank is short of reserves, it can borrow from the Fed
Physical capital is ______. Financial capital is ______.
A. the tools, instruments, machines, buildings, and other items that have been produced in the past and that are used today to produce goods and services;
If real GDP per person doubles in 20 years, then the annual growth rate of real GDP per person is ______ percent a year.
A. 3.5
Choose the statement that is incorrect.
A. Deposits are not money because you cannot settle a debt with a deposit.
Choose the correct statement.
A. Depostis are money, checks are not money, and credit cards are not money.
The ratio of reserves to deposits that a bank plans to hold is its ______. If a bank has $10 million in actual reserves and $8 million in desired reserves, then it has ______.
A. Desired reserve ratio; excess reserves
Examples of physical capital are ______. Examples of financial capital are ______.
B. ovens used by Pizza Hut and lawn mowers used by Larry's Mowing; bonds issued by Wal-Mart and stocks issued by Boeing
G-20 Leaders Look to Shake off Lingering Economic Troubles The G-20 aims to take stock of the economic recovery. One achievement in Pittsburgh could be a deal to require that financial institutions hold more capital. Source: USA Today, September 24, 2009 The "capital" referred to in the news clip is ______. The financial institutions that the G-20 might require to hold more capital are ______. The requirement to hold more capital can make financial institutions safer because by using more of its own funds and less borrowed funds, a financial institution ______.
B. the institutions' own funds; banks and insurance companies Answer 2: C. Decreases its risk of insolvency
The money multiplier can be calculated as ______, where C is currency, D is deposits, and R is banks' reserves.
B. (1+C/D)+(R/D+C/D)
The personal consumption expenditure deflator is calculated as _______.
B. (Nominal C +Real C) x100
Over the past 100 years, the average growth rate of U.S. real GDP per person is 2 percent. Over the past 100 years, growth was most rapid during the ______ and slowest during the ______.
B. 1960s; Great Depression
A government budget deficit occurs, which ______. The real interest rate ______ Private saving increases and investment decreases .
C. Increases the demand for loanable funds; rises blue answer: Increases; decreases
Choose the statement that is incorrect.
C. Labor hours are all equally productive.
Choose the statement that is incorrect.
C. Liquid assets have a higher interest rate than securities.
If the CPI rises from 120 to 126, then ______.
C. On average, the price paid by urban consumers for a fixed basket of consumer goods, and services rises by 5 percent.
Choose the statement that is incorrect.
C. Real GDP per person grows whenever reall GDP grows.
Out of a Job and Out of Luck at 54 Too young to retire, too old to get a new job. That's how many older workers feel after getting the pink slip and spending time on the unemployment line. Many lack the skills to craft resumes and search online, experts say. Older workers took an average of 21.1 weeks to land a new job in 2007, about 5 weeks longer than younger people. "Older workers will be more adversely affected because of the time it takes to transition into another job," said Deborah Russell, AARP's director of workforce issues. Older workers are more prone to experience ______ unemployment. During a recession, the unemployment rate of older workers ______. (Labeling this as part 1 in answer catagory) Choose the statement that is incorrect. Older unemployed workers might become marginally attached workers or discouraged workers during a recession because _______. (Labeling as part 2)
Part 1 answer: D. Structural; increases Part 2 answer: C. given their long employment history, they are eligible for longer periods of unemployment benefits
Governor Plans to Boost Economy with Ecofriendly Jobs Oregon's 5.6 percent unemployment rate hovers close to the national average of 5.5 percent. A few years ago, Oregon had one of the highest unemployment rates in the nation. To avoid rising unemployment, Oregon Governor Kulongoski introduced a plan that provides public schools and universities with enough state funds to meet growing demand for skilled workers. Also Kulongoski wants to use state and federal money for bridges, roads, and buildings to stimulate more construction jobs. Source: The Oregonian, July 8, 2008 The main type of unemployment that Governor Kulongoski is using policies to avoid is ______. If these policies are successful, we would expect to see Oregon's natural unemployment rate ______.
Part 1: (the main type...) A. Frictional and structural Part 2: Fall
Jobless Rate Soars to 6.1% September 5, 2008 The unemployment rate soared to a nearly five-year high in August as employers trimmed jobs for the eighth straight month, the government reported Friday. The unemployment rate rose to 6.1%, the highest level since September 2003. That's up from 5.7% in July and 4.7% a year ago. In addition, the economy suffered a net loss of 84,000 jobs in August, according to the U.S. Department of Labor, compared to a revised reading of a 60,000 job loss in July. The U.S. economy has lost 605,000 jobs so far this year. The jobs report immediately drew comment from the presidential candidates as well as the Bush administration. The White House pointed to other economic readings, including last week's gross domestic product report. It showed second quarter growth jumping to a 3.3% annual rate, helped by economic stimulus checks and strong exports. "While these (jobs) numbers are disappointing, what is most important is the overall direction the economy is headed," said the White House statement. But the campaign of Democratic presidential candidate Barack Obama said the report points out the failure of Republican policies. ... The unemployment rate doesn't tell the whole picture about how difficult the job market has become. It only counts those who looked for work during the month; it excludes the unemployed who want jobs but have stopped looking for work. And it also doesn't count those who want full-time jobs but can only find part-time positions. The so-called underemployment rate, which includes those two other groups, rose to 10.7%long dash—the highest reading since 1994. © 2006 The Los Angeles Times via Tribune Media Services. All Rights Reserved. Reprinted with permission. The slow job growth and rise in unemployment after mid-2007 is most likely: A. cyclical B. frictional C. Structural Choose the statement that is incorrect.
Part 1: A. cyclical Part 2: B. The U.S. government cannot create jobs. Jobs are created by the private sector.
The U.S. economy has lost 605,000 jobs so far this year. The jobs report immediately drew comment from the presidential candidates as well as the Bush administration. The White House pointed to other economic readings, including last week's gross domestic product report. It showed second quarter growth jumping to a 3.3% annual rate, helped by economic stimulus checks and strong exports. "While these (jobs) numbers are disappointing, what is most important is the overall direction the economy is headed," said the White House statement. But the campaign of Democratic presidential candidate Barack Obama said the report points out the failure of Republican policies. ... The unemployment rate doesn't tell the whole picture about how difficult the job market has become. It only counts those who looked for work during the month; it excludes the unemployed who want jobs but have stopped looking for work. And it also doesn't count those who want full-time jobs but can only find part-time positions. The so-called underemployment rate, which includes those two other groups, rose to 10.7%long dash—the highest reading since 1994. © 2006 The Los Angeles Times via Tribune Media Services. All Rights Reserved. Reprinted with permission. The unemployment rate peaked ______ after the 2001 recession. During the 2002-2008 recession, the unemployment rate reached its lowest point at the beginning of ______. The expansion of 2002-2008 created jobs at ______ rate. The first two years of the expansion created few jobs because ______.
Part 1: C. 18 months; 2007 Part 2: D an unusually slow; the expansion was very weak, so employment growth was weak
A Half-Year of Job Losses Employers trimmed jobs in June for the sixth straight month, with the total for the first six months at 438,000 jobs lost by the U.S. economy. The job losses in June were concentrated in manufacturing and construction, two sectors that have been badly battered in the recession. Source: CNN, July 3, 2008
Read the news clip, then answer the following question. According to the news clip, the main source of increased unemployment might be ______, and the main type of increased unemployment is ______. (Answer is D. Losses in manufacturing and construction jobs; cyclical)
According to classical growth theory, when real GDP per person ______, the population grows.
a. rises above the subsistence level
Upper A decreaseA decrease in current income taxes ______ the supply of loanable funds today because it ______. Upper A decreaseA decrease in expected future income ______.
answer A: A. increases; increases disposable income, which encourages greater saving Answer B: C. increases the supply of loanable funds today because households with smaller expected future income will save more today.
