Question 1

Stagflation describes a situation in the economy where the economy is

Accepted Answer

A)  growing with a simultaneous inflation.
B)  stagnant and prices are falling.
C)  growing and prices are falling.
D)  stagnant and prices are stable.
E)  stagnant and prices are rising.F) C) and D)
G) A) and E)

Question 2

The most severe recession since WWII was in

Accepted Answer

A)  1973-1975.
B)  1981-1982.
C)  2007-2008.
D)  1991-2001.E) B) and D)
F) A) and B)

Question 3

Clark Kent,a middle-aged bachelor,quit his news reporter job and currently is looking for a better job.The BLS counts Clark as

Accepted Answer

A)  not in the labor force.
B)  employed.
C)  unemployed.
D)  a discouraged worker.
E)  functionally employed.F) A) and B)
G) A) and C)

Question 4

The data collected by the Bureau of Labor Statistics have been criticized because

Accepted Answer

A)  part-time workers are not counted in the number of workers employed.
B)  discouraged workers are treated as part of the labor force.
C)  some workers who are not looking for work are included in the labor force.
D)  millions of people with make-work jobs are counted as employeD.E) B) and C)
F) All of the above

Question 5

Statement I: Since the close of World War II our expansions have never been shorter than 20 months.
Statement II: The longest expansion on record since 1945 has been 7 years.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.E) A) and D)
F) A) and C)

Question 6

If the overall unemployment rate is 8 percent,then the cyclical unemployment rate is _____ percent.

Accepted Answer

The answer of If the overall unemployment rate is 8...

Question 7

Which statement is true?

Accepted Answer

A)  We are currently experiencing hyperinflation.
B)  Our economy was in a recession for most of the 1980s.
C)  The 1980s was the most prosperous decade in our history.
D)  None of the statements are true.E) A) and D)
F) B) and C)

Question 8

A lender need not be penalized by inflation if the

Accepted Answer

A)  long-term rate of inflation is less than the short-term rate of inflation.
B)  short-term rate of inflation is less than the long-term rate of inflation.
C)  lender correctly anticipates inflation and increases the nominal interest rate accordingly.
D)  inflation is unanticipated by both borrower and lender.E) A) and B)
F) All of the above

Question 9

Unemployment due to the length of time it takes to find employment upon entering the labor force or voluntarily between jobs is called

Accepted Answer

A)  cyclical unemployment.
B)  frictional unemployment.
C)  structural unemployment.
D)  natural unemployment.E) None of the above
F) B) and C)

Question 10

Which of the following is a reason the inflation rate has stayed at or below 3 percent every year since 1992?

Accepted Answer

A)  The accelerating pace of technological advance
B)  The advent of E-commerce,which has added a new layer of competition
C)  The rise of huge discounters,such as Wal-Mart and Staples
D)  The rising tide of imported goods
E)  All of the choices are correctF) C) and D)
G) A) and B)

Question 11

If the CPI declines from 300 to 270,the price level fell by _____ percent.

Accepted Answer

The answer of If the CPI declines from 300 to...

Question 12

(a)In which year did disinflation begin? (b)In which year did deflation begin?
$$\begin{array} { c c } 
\text { Year } & \text { CPI } \
2015 & 100.0 \
2016 & 105.0 \
2017 & 112.5 \
2018 & 124.3 \
2019 & 141.6 \
2020 & 148.3 \
2021 & 151.2 \
2022 & 152.0 \
2023 & 152.3 \
2024 & 151.8 \
2025 & 150.0 \
2026 & 145.9
\end{array}$$

Accepted Answer

The answer of (a)In which year did disinflation begin? (b)In...

Question 13

Which statement is most accurate?

Accepted Answer

A)  When inflation is anticipated,there are no winners or losers.
B)  People with fixed incomes are better off if inflation is unanticipated than if it is anticipated.
C)  No one gains from inflation.
D)  Creditors are usually helped by inflation.E) A) and B)
F) A) and C)

Question 14

The unemployment rate is a fraction whose numerator is

Accepted Answer

A)  the total population.
B)  the number of employed.
C)  the number of unemployed.
D)  the difference between the total population and the number of employeD.E) None of the above
F) A) and D)

Question 15

A rise in the CPI from 120 to 180 represents a _____ percent increase in the price level.

Accepted Answer

The answer of A rise in the CPI from 120...

Question 16

There have been ________ recessions since the end of WWII.

Accepted Answer

A)  seven
B)  nine
C)  ten
D)  eleven
E)  thirteenF) B) and D)
G) D) and E)

Question 17

The U.S.Department of Labor calculates the unemployment rate by

Accepted Answer

A)  totaling the number of households receiving unemployment compensation.
B)  analyzing federal income tax returns.
C)  surveying households.
D)  surveying businesses to determine patterns of hiring and layoffs.E) A) and C)
F) All of the above

Question 18

-Deflation began in the year ____.

Accepted Answer

The answer of 
-Deflation began in the year ____....

Question 19

Given the following information,compute the unemployment rate: 6 million unemployed,124 million employed.

Accepted Answer

The answer of Given the following information,compute the unemployment rate:...

Question 20

Deflation is

Accepted Answer

A)  hyperinflation.
B)  a constant rate of inflation.
C)  a slow-down in the rate of inflation.
D)  zero inflation.
E)  a decline in the average price levelF) A) and B)
G) All of the above

Exam 10: Economic Fluctuations, unemployment, and Inflation

Which statement is true?

Correct Answer
verified

The unemployment rate is a fraction whose numerator is

Correct Answer
verified

Which statement is most accurate?

Correct Answer
verified

Unemployment due to the length of time it takes to find employment upon entering the labor force or voluntarily between jobs is called

Correct Answer
verified

The data collected by the Bureau of Labor Statistics have been criticized because

Correct Answer
verified

There have been ________ recessions since the end of WWII.

Correct Answer
verified

The U.S.Department of Labor calculates the unemployment rate by

Correct Answer
verified

A rise in the CPI from 120 to 180 represents a _____ percent increase in the price level.

Correct Answer
verified

-Deflation began in the year ____.

Correct Answer
verified

If the CPI declines from 300 to 270,the price level fell by _____ percent.

Correct Answer
verified

Given the following information,compute the unemployment rate: 6 million unemployed,124 million employed.

Correct Answer
verified

The most severe recession since WWII was in

Correct Answer
verified

Deflation is

Correct Answer
verified

Statement I: Since the close of World War II our expansions have never been shorter than 20 months. Statement II: The longest expansion on record since 1945 has been 7 years.

Correct Answer
verified

Clark Kent,a middle-aged bachelor,quit his news reporter job and currently is looking for a better job.The BLS counts Clark as

Correct Answer
verified

Correct Answer
verified

Stagflation describes a situation in the economy where the economy is

Correct Answer
verified

A lender need not be penalized by inflation if the

Correct Answer
verified

Which of the following is a reason the inflation rate has stayed at or below 3 percent every year since 1992?

Correct Answer
verified

If the overall unemployment rate is 8 percent,then the cyclical unemployment rate is _____ percent.

Correct Answer
verified

Exam 10: Economic Fluctuations, unemployment, and Inflation

Which statement is true?

Correct AnswerverifiedShow Answer

The unemployment rate is a fraction whose numerator is

Correct AnswerverifiedShow Answer

Which statement is most accurate?

Correct AnswerverifiedShow Answer

Unemployment due to the length of time it takes to find employment upon entering the labor force or voluntarily between jobs is called

Correct AnswerverifiedShow Answer

The data collected by the Bureau of Labor Statistics have been criticized because

Correct AnswerverifiedShow Answer

There have been ________ recessions since the end of WWII.

Correct AnswerverifiedShow Answer

The U.S.Department of Labor calculates the unemployment rate by

Correct AnswerverifiedShow Answer

A rise in the CPI from 120 to 180 represents a _____ percent increase in the price level.

Correct AnswerverifiedShow Answer

-Deflation began in the year ____.

Correct AnswerverifiedShow Answer

If the CPI declines from 300 to 270,the price level fell by _____ percent.

Correct AnswerverifiedShow Answer

Given the following information,compute the unemployment rate: 6 million unemployed,124 million employed.

Correct AnswerverifiedShow Answer

The most severe recession since WWII was in

Correct AnswerverifiedShow Answer

Deflation is

Correct AnswerverifiedShow Answer

Statement I: Since the close of World War II our expansions have never been shorter than 20 months. Statement II: The longest expansion on record since 1945 has been 7 years.

Correct AnswerverifiedShow Answer

Clark Kent,a middle-aged bachelor,quit his news reporter job and currently is looking for a better job.The BLS counts Clark as

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Stagflation describes a situation in the economy where the economy is

Correct AnswerverifiedShow Answer

A lender need not be penalized by inflation if the

Correct AnswerverifiedShow Answer

Which of the following is a reason the inflation rate has stayed at or below 3 percent every year since 1992?

Correct AnswerverifiedShow Answer

If the overall unemployment rate is 8 percent,then the cyclical unemployment rate is _____ percent.

Correct AnswerverifiedShow Answer

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