Question 1

An increase in government purchases financed by an equal increase in tax collections will increase national incomE.

Accepted Answer

A) True 
 B)False

Question 2

Economic growth or improved technology would be shown on an aggregate demand - aggregate supply diagram as an increase in AD,AS remaining constant.

Accepted Answer

A) True 
 B)False

Question 3

An increase in imports would expand the level of employment.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following individuals is part of the labor force?

Accepted Answer

A)  A 15-year-old worker at a fast food restaurant
B)  A paid prison worker at the prison carpentry shop
C)  A college student attending school full-time
D)  A stay-at-home dad
E)  None of the above

Question 5

The relationship shown by the Phillips curve,which implies a tradeoff between inflation and unemployment rates,is a long-run phenomenon.

Accepted Answer

A) True 
 B)False

Question 6

After the events of the 1970s,economists learned that

Accepted Answer

A)  Attempts to trade off unemployment and inflation would only work for a short period of time
B)  Shocks to the aggregate supply could alter the relationships between unemployment and inflation
C)  The Phillips curve relationship was not stable
D)  The Phillips curve shifted over time
E)  All of the above

Question 7

Structural unemployment results from people changing jobs.

Accepted Answer

A) True 
 B)False

Question 8

When individuals want to work,but give up looking for a job because they feel there will never be one available,they are considered

Accepted Answer

A)  Pessimistic
B)  Lazy
C)  Discouraged
D)  Part of the labor force
E)  Unemployed

Question 9

The lowest unemployment rate is found for those between the ages of 16 and 19.

Accepted Answer

A) True 
 B)False

Question 10

Inflation means that prices are too high.

Accepted Answer

A) True 
 B)False

Question 11

A factory worker who loses a job because of a decrease in aggregate demand is

Accepted Answer

A)  Frictionally unemployed
B)  Involuntarily unemployed
C)  Structurally unemployed
D)  Cyclically unemployed
E)  Seasonally unemployed

Question 12

Unemployment below the full employment rate is a measure of

Accepted Answer

A)  Underemployment
B)  Structural unemployment
C)  Cyclical unemployment
D)  Seasonal unemployment
E)  None of the above

Question 13

A trade deficit will occur in an economy

Accepted Answer

A)  When spending exceeds income
B)  When the value of exports exceeds the value of imports
C)  When the value of exports is less than the value of imports
D)  When an economy is expanding
E)  When an economy is in recession

Question 14

The AD-AS relationship is not affected by circular flow relationships.

Accepted Answer

A) True 
 B)False

Question 15

Shifts in the aggregate supply function can cause shifts in the Phillips curve.

Accepted Answer

A) True 
 B)False

Question 16

The best description of the growth of the money supply since 1960 is that it has

Accepted Answer

A)  Increased steadily
B)  Increased rapidly during the 1980's
C)  Decreased steadily
D)  Decreased rapidly during the 1960's
E)  Shown patterns of both fast and slow growth over the decades

Question 17

An increase in the marginal propensity to consume will increase the size of the multiplier.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following types of unemployment is considered long-term,hardcore unemployment?

Accepted Answer

A)  Cyclical
B)  Structural
C)  Frictional
D)  Seasonal
E)  None of the above

Question 19

Frictional unemployment is a long-run event for particular individuals.

Accepted Answer

A) True 
 B)False

Question 20

Between 1960 and 2011,the unemployment rate has

Accepted Answer

A)  Steadily increased
B)  Steadily fallen
C)  Been below 6% over the entire period
D)  Ranged from 1% to 12%
E)  None of the above

Exam 13: Unemployment and Inflation: Can We Find a Balance

Which of the following types of unemployment is considered long-term,hardcore unemployment?

Correct AnswerverifiedShow Answer

Between 1960 and 2011,the unemployment rate has

Correct AnswerverifiedShow Answer

The lowest unemployment rate is found for those between the ages of 16 and 19.

Correct AnswerverifiedShow Answer

Which of the following individuals is part of the labor force?

Correct AnswerverifiedShow Answer

When individuals want to work,but give up looking for a job because they feel there will never be one available,they are considered

Correct AnswerverifiedShow Answer

A factory worker who loses a job because of a decrease in aggregate demand is

Correct AnswerverifiedShow Answer

The AD-AS relationship is not affected by circular flow relationships.

Correct AnswerverifiedShow Answer

Shifts in the aggregate supply function can cause shifts in the Phillips curve.

Correct AnswerverifiedShow Answer

A trade deficit will occur in an economy

Correct AnswerverifiedShow Answer

Economic growth or improved technology would be shown on an aggregate demand - aggregate supply diagram as an increase in AD,AS remaining constant.

Correct AnswerverifiedShow Answer

An increase in the marginal propensity to consume will increase the size of the multiplier.

Correct AnswerverifiedShow Answer

Inflation means that prices are too high.

Correct AnswerverifiedShow Answer

The best description of the growth of the money supply since 1960 is that it has

Correct AnswerverifiedShow Answer

Unemployment below the full employment rate is a measure of

Correct AnswerverifiedShow Answer

After the events of the 1970s,economists learned that

Correct AnswerverifiedShow Answer

Structural unemployment results from people changing jobs.

Correct AnswerverifiedShow Answer

Frictional unemployment is a long-run event for particular individuals.

Correct AnswerverifiedShow Answer

An increase in imports would expand the level of employment.

Correct AnswerverifiedShow Answer

The relationship shown by the Phillips curve,which implies a tradeoff between inflation and unemployment rates,is a long-run phenomenon.

Correct AnswerverifiedShow Answer

An increase in government purchases financed by an equal increase in tax collections will increase national incomE.

Correct AnswerverifiedShow Answer

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