Unemployment 30 question review
Dr. Homer Simpson, an economics professor, decided to take a year off from teaching to run a commercial fishing boat in Alaska. That year, Professor Simpson would be officially counted as:
employed
the rate of inflation can be found by subtracting
last year's price index from this year's price index and dividing the difference by last year's price index.
cost-push inflation
moves the economy inward from its production possibilities curve.
capitalist economies have been characterized by:
occasional instability of employment and price levels
the unemployment rate is
percentage of the labor force which is out of work
if the unemployment rate is 9 percent, we can infer that
potential GDP is in excess of actual GDP
inflation means that
prices in the aggregate are rising, although some particular prices may be falling
a recession is period in which
real domestic output falls
unanticipated inflation benefits debtors at the expense of creditors [true or false?]
true
the united states economy is considered to be at "full employment" when
100 percent of the labor force is employed
refer to the above information. the unemployment rate is
12.5 percent
When the U.S economy has achieved "full employment" the unemployment rate is at or below
5.5 percent
If the rate of inflation is 12 percent per year, the price level will double in about:
6 years
Assume the natural rate of unemployment in the U.S. economy is 5 percent and the actual rate of unemployment is 9 percent. According to Okun's law, the negative GDP gap as a percent of potential GDP is:
8 percent
the phase of the business cycle in which real domestic output declines is called
a recession
if the unemployment rate is 9 percent and the natural rare of unemployment is 5.5 percent, then the
cyclical unemployment rate is 3.5 percent
the GDP gap measures the
amount by which potential GDP exceeds actual GDP
Who is least likely to be hurt by unanticipated inflation?
an owner of a small business
In the United States, the rate of unemployment is highest for
black teenagers
As applied to the price level, the "rule of 70" indicates that the number of years required for the price level to double can be found by:
dividing the annual rate of inflation into "70"
the production of durable goods varies more than the production of nondurable goods because
durables purchases are postponable and producers of durables have monopoly power
Kimberly voluntarily quit her job as an insurance agent to return to school full-time to earn an MBA degree. With degree in hand she is now searching for a position in management. Kimberly presently is:
frictionally unemployed
assume smith is temporarlity unemployed because he has voluntarily quit his job with company A and will begin a better job next week with company B. Smith will be considered as
frictionally unemployed
Suppose that a person's nominal income rises from $10,000 to $12,000 and the consumer price index rises from 100 to 105. The person's real income will:
rise by about 15 percent
Okun's law:
shows the relationship between the unemployment rate and the size of the negative GDP gap
Eckstein has lost her job in a Massachusetts textile plant because of import competition. She intends to take a short course in electronics and move to California where she anticipates that a new job will be available. We can say that Eckstein is faced with:
structural unemployment
the natural rate of unemployment is
that rate of unemployment occurring when the economy is at its potential output
if actual GDP is less than potential GDP
the actual unemployment rate will be higher than the natural unemployment rate.
during a serious recession we would expect output to fall the most in
the machine tool industry
the phase of the business cycle where real domestic output is at a minimum is called
the trough