Edpuzzle Test
A depreciated or "weaker" currency when purchasing foreign made raw materials would cause a movement/shift from:
point A to point D
The unemployment rate is the total number of individuals classified as ________________ divided by the total ________________.
unemployed; number of those in the labor force
The national unemployment rate applies to all citizens in an economy regardless of their demographic such as age, gender, race, and geographic location.
False
Cyclical unemployment is the result of:
Fluctuations in the real gross domestic product
A college graduate that has never had a job before that is using the summer of following graduation to search for a job, would be best classified as:
Frictionally Unemployed
Kimberly voluntarily quit her job as an insurance agent to return to school full-time to earn an MBA degree. Two years later, with degrees in hand, she is now searching for a position in management. Kimberly presently is:
Frictionally unemployed
Anne Kasperson works in her own home as a full-time caretaker and homemaker for her own family members. Officially she is:
Not in the labor force
To be classified as unemployed, a person must be:
Not working and actively looking for a job in the last four weeks
If workers have expectations of continued future inflation, we may see a movement/shift from:
Point A to point E
The SRAS curve is upward sloping because:
a higher aggregate price level leads to higher output since most production costs are fixed in the short run.
Only under the very best economic conditions, can the unemployment rate ever equal zero percent
False
A movement along the aggregate demand curve is caused by a:
a change in the aggregate price level.
Which of the following would explain the movement/shift from point A to point D?
A decline the nominal wages of workers.
Which of the follow would explain a movement/shift of point A to point C?
A low capital stock relative to high expected future demand
An increase in aggregate demand is illustrated by a movement from:
ADI to AD2
Which of the following would explain a movement/shift from point A to point D?
An economy-wide decrease in commodity/resource prices.
Which of the following would explain a movement/shift from point A point E?
An increase in business taxes and costly government regulation.
Which of the following would explain the movement/shift from point A to point B?
An increase in the aggregate price level.
An example of cyclical unemployment is a(n):
Autoworker who is laid off from an automobile company due to a decline in sales caused by recession.
Which of the following has the most direct effect on aggregate demand?
Changes in government purchases.
The natural rate of unemployment is:
Equal to the sum of frictional and structural employment
If the Fed increases the quantity of money in circulation:
Interest rates decrease, investment increases, and the aggregate demand curve shifts to the right
In general, for the U.S. economy, the relationship between unemployment and real economic growth is:
Inverse
An example of frictional unemployment is a(n):
Real estate agent who leaves a job in Texas and searches for a similar, higher paying job in California
Sam, who is 55 years old and has been a steel worker for 30 years, is unemployed because the steel in his town closed and moved to Mexico. Sam is experiencing:
Structural unemployment
Last month, Brent lost his job at the auto parts factory because his factory, like many others, relocated to Asia. Brent continues to look for similar factory jobs in his town, but has found no openings. Brent is best classified as:
Structurally Unemployed
A movement/shift from point B to point E could be explained by:
an improvement in expectations of future GDP.
A movement/shift of point E to point B can be explained by:
an increase in taxes.
A movement/shift from point A to point E can be explained by:
an increase in the prices of imported resources.
In general, an increase in the price level, all other things unchanged, causes:
an upward movement along the aggregate demand curve.
The AD curve will shift leftward:
if there is a decrease in household wealth.
Sticky wages and fixed resource prices occur:
in the short run only
Nominal wages are "sticky" because:
in the short run these payments are slow to rise when there are labor shortages and slow to fall even when there is significant level of unemployment.
The short run in macroeconomic analysis is a period:
in which many production costs can be assumed to be fixed
According to the wealth effect, when the price level decreases, the purchasing power of assets:
increases and consumer spending increases
The aggregate demand curve:
slopes downward in part because when the price level falls the real wealth of the public falls and this indicates people to change their consumption
Discouraged and underemployed workers cause:
the unemployment rate to understate the unemployment problem