Question 1

Martin Shore lost his job when General Motors closed down its local plant. He has been visiting the personnel offices of the other factories in the area, looking for a new job. He is:

Accepted Answer

A)   a member of the civilian labor force who is employed.
B)   a member of the civilian labor force who is unemployed.
C)   a member of the civilian labor force who is underemployed.
D)   a discouraged worker who is not a member of the labor force.E) A) and B)
F) C) and D)

Question 2

Variables that change before real GDP changes are measured by the:

Accepted Answer

A)   personal income index.
B)   real GDP index.
C)   forecasting gauge.
D)   index of leading indicators.E) A) and B)
F) A) and C) D

Question 3

Which one of the following people is not a member of the labor force?

Accepted Answer

A)   A full-time student who devotes all her time to her classes.
B)   A person who works 30 hours a week at Burger King and goes to school at night.
C)   The man who was fired last week and is searching for a new job.
D)   A professional athlete.E) None of the above
F) A) and D)

Question 4

Consider a broom factory that permanently closes because of foreign competition. If the broom factory's workers cannot find new jobs because their skills are no longer marketable, then they are classified as:

Accepted Answer

A)   seasonally unemployed.
B)   frictionally unemployed.
C)   structurally unemployed.
D)   cyclically unemployed.E) B) and D)
F) B) and C)

Question 5

Bob is unemployed because his skills have become obsolete due to technological advances. This is ____ unemployment.

Accepted Answer

A)   frictional
B)   structural
C)   cyclical
D)   seasonalE) A) and B)
F) B) and C)

Question 6

What generally causes the business cycle? What are the four phases of a single business cycle? What are the problems associated with the business cycle?

Accepted Answer

Changes in total spending (aggregate dem...

Question 7

The period of declining growth in real GDP between the peak of the business cycle and the trough is called a(n) :

Accepted Answer

A)   recessionary phase.
B)   expansionary.
C)   recovery phase.
D)   stationary phase.E) A) and C)
F) A) and D)

Question 8

Exhibit 6-1 Business cycle

In Exhibit 6-1, the recovery phase of the business cycle can be represented by points:

Accepted Answer

A)   A.
B)   C.
C)   E to G.
D)   C to E.E) A) and C)
F) None of the above

Question 9

Economists usually use the term "recession" to refer to:

Accepted Answer

A)   any slowdown in the growth of real GDP.
B)   zero real GDP growth.
C)   two or more consecutive quarters of declining real GDP.
D)   a reduction in nominal GDP lasting more than six months.E) A) and C)
F) A) and D)

Question 10

Exhibit 16-2 Unemployment categories

Using the information in Exhibit 16-2, the natural rate of unemployment is

Accepted Answer

A)   2.8 percent.
B)   10.3 percent.
C)   11 percent.
D)   21.5 percent.E) None of the above
F) A) and B)

Question 11

Which of the following is a leading business cycle indicator?

Accepted Answer

A)   the unemployment rate
B)   the volume of outstanding commercial loans
C)   new building permits
D)   personal incomeE) A) and B)
F) All of the above

Question 12

Which of the following statements is true ?

Accepted Answer

A)   The four phases of the business cycle, in order, are: peak, recovery, trough, recession.
B)   When unemployment is rising then real GDP is rising.
C)   The economic problem typically associated with a recovery is rising unemployment.
D)   Full employment exists in an economy when the unemployment rate equals the sum of frictional, and structural unemployment rates.E) C) and D)
F) A) and D)

Question 13

Exhibit 16-2 Unemployment categories

Find the BLS's rate of unemployment from the following data: frictional unemployment = 150, structural unemployment = 200, cyclical unemployment = 225, discouraged workers = 25, underemployed workers = 75, fully employed workers = 850, total population = 2,000.

Accepted Answer

A)   17.5 percent
B)   23.3 percent
C)   38.3 percent
D)   39.3 percentE) B) and C)
F) A) and C)

Question 14

Which of the following is not a coincident indicator?

Accepted Answer

A)   personal income
B)   industrial production
C)   manufacturing and trade sales
D)   average workweekE) None of the above
F) A) and B)

Question 15

Consider an economy made up of 100 people, 60 of whom old jobs, 10 of whom are looking for work, and 15 of whom are retired. The number counted as unemployed is:

Accepted Answer

A)   10.
B)   15.
C)   40.
D)   30.E) None of the above
F) A) and D)

Question 16

Susan Greenberg, who works in a typewriter factory, becomes unemployed because people start buying personal computers instead of typewriters. Susan can best be described as:

Accepted Answer

A)   frictionally unemployed.
B)   structurally unemployed.
C)   cyclically unemployed.
D)   not part of the labor force.E) None of the above
F) C) and D)

Question 17

What is full employment? What are the different kinds of unemployment? What constitutes the natural (normal) rate of unemployment?

Accepted Answer

Full employment exists when approximately 95 percent of the civilian labor force is employed. This implies a natural rate of unemployment of approximately 5 percent. The natural rate of unemployment consists of the frictionally and structurally unemployed. The only other type of unemployment is cyclical unemployment.

Question 18

Which of the following is not a lagging indicator?

Accepted Answer

A)   duration of unemployment
B)   stock prices
C)   outstanding commercial and industrial loans
D)   prime rateE) All of the above
F) A) and D) B

Question 19

Exhibit 6-1 Business cycle

In Exhibit 6-1, point E represents:

Accepted Answer

A)   recession and a trough.
B)   peak and a trough.
C)   recession and a peak.
D)   recovery and a peak.E) A) and D)
F) A) and C)

Question 20

The burden of unemployment is

Accepted Answer

A)   endured better by people with substantial savings.
B)   fully measured by the monetary cost computed in the GDP gap.
C)   borne equally by all unemployed people.
D)   completely offset by the federal unemployment insurance program.E) B) and D)
F) C) and D)

Exam 16: Business Cycles and Unemployment

Martin Shore lost his job when General Motors closed down its local plant. He has been visiting the personnel offices of the other factories in the area, looking for a new job. He is:

Correct Answer
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Variables that change before real GDP changes are measured by the:

Correct Answer
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D

Which one of the following people is not a member of the labor force?

Correct Answer
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Consider a broom factory that permanently closes because of foreign competition. If the broom factory's workers cannot find new jobs because their skills are no longer marketable, then they are classified as:

Correct Answer
verified

Bob is unemployed because his skills have become obsolete due to technological advances. This is ____ unemployment.

Correct Answer
verified

What generally causes the business cycle? What are the four phases of a single business cycle? What are the problems associated with the business cycle?

Correct Answer
verified
Changes in total spending (aggregate dem...
View Answer

The period of declining growth in real GDP between the peak of the business cycle and the trough is called a(n) :

Correct Answer
verified

Exhibit 6-1 Business cycle In Exhibit 6-1, the recovery phase of the business cycle can be represented by points:

Correct Answer
verified

Economists usually use the term "recession" to refer to:

Correct Answer
verified

Exhibit 16-2 Unemployment categories Using the information in Exhibit 16-2, the natural rate of unemployment is

Correct Answer
verified

Which of the following is a leading business cycle indicator?

Correct Answer
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Which of the following statements is true ?

Correct Answer
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Exhibit 16-2 Unemployment categories Find the BLS's rate of unemployment from the following data: frictional unemployment = 150, structural unemployment = 200, cyclical unemployment = 225, discouraged workers = 25, underemployed workers = 75, fully employed workers = 850, total population = 2,000.

Correct Answer
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Which of the following is not a coincident indicator?

Correct Answer
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Consider an economy made up of 100 people, 60 of whom old jobs, 10 of whom are looking for work, and 15 of whom are retired. The number counted as unemployed is:

Correct Answer
verified

Susan Greenberg, who works in a typewriter factory, becomes unemployed because people start buying personal computers instead of typewriters. Susan can best be described as:

Correct Answer
verified

What is full employment? What are the different kinds of unemployment? What constitutes the natural (normal) rate of unemployment?

Which of the following is not a lagging indicator?

Correct Answer
verified
B

Exhibit 6-1 Business cycle In Exhibit 6-1, point E represents:

Correct Answer
verified

The burden of unemployment is

Correct Answer
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Exam 16: Business Cycles and Unemployment

Martin Shore lost his job when General Motors closed down its local plant. He has been visiting the personnel offices of the other factories in the area, looking for a new job. He is:

Correct AnswerverifiedShow Answer

Variables that change before real GDP changes are measured by the:

Correct AnswerverifiedD

Which one of the following people is not a member of the labor force?

Correct AnswerverifiedShow Answer

Consider a broom factory that permanently closes because of foreign competition. If the broom factory's workers cannot find new jobs because their skills are no longer marketable, then they are classified as:

Correct AnswerverifiedShow Answer

Bob is unemployed because his skills have become obsolete due to technological advances. This is ____ unemployment.

Correct AnswerverifiedShow Answer

What generally causes the business cycle? What are the four phases of a single business cycle? What are the problems associated with the business cycle?

Correct AnswerverifiedChanges in total spending (aggregate dem...View AnswerShow Answer

The period of declining growth in real GDP between the peak of the business cycle and the trough is called a(n) :

Correct AnswerverifiedShow Answer

Exhibit 6-1 Business cycle In Exhibit 6-1, the recovery phase of the business cycle can be represented by points:

Correct AnswerverifiedShow Answer

Economists usually use the term "recession" to refer to:

Correct AnswerverifiedShow Answer

Exhibit 16-2 Unemployment categories Using the information in Exhibit 16-2, the natural rate of unemployment is

Correct AnswerverifiedShow Answer

Which of the following is a leading business cycle indicator?

Correct AnswerverifiedShow Answer

Which of the following statements is true ?

Correct AnswerverifiedShow Answer

Exhibit 16-2 Unemployment categories Find the BLS's rate of unemployment from the following data: frictional unemployment = 150, structural unemployment = 200, cyclical unemployment = 225, discouraged workers = 25, underemployed workers = 75, fully employed workers = 850, total population = 2,000.

Correct AnswerverifiedShow Answer

Which of the following is not a coincident indicator?

Correct AnswerverifiedShow Answer

Consider an economy made up of 100 people, 60 of whom old jobs, 10 of whom are looking for work, and 15 of whom are retired. The number counted as unemployed is:

Correct AnswerverifiedShow Answer

Susan Greenberg, who works in a typewriter factory, becomes unemployed because people start buying personal computers instead of typewriters. Susan can best be described as:

Correct AnswerverifiedShow Answer

What is full employment? What are the different kinds of unemployment? What constitutes the natural (normal) rate of unemployment?

Which of the following is not a lagging indicator?

Correct AnswerverifiedB

Exhibit 6-1 Business cycle In Exhibit 6-1, point E represents:

Correct AnswerverifiedShow Answer

The burden of unemployment is

Correct AnswerverifiedShow Answer

Correct Answer
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D

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Changes in total spending (aggregate dem...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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B

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