The Percentage Change in One's Real Income Can Be Approximated by the Percentage Change in

Macroeconomics – Tutorial Chapter 09

1.

Refer to the above diagram. The phases of the business cycle from points A to D are, respectively:
A. Tiptop, recession, expansion, trough
B. Trough, recovery, expansion, superlative
C. Expansion, recession, trough, peak
D. Peak, recession, trough, expansion

2.  Refer to the above diagram. The straight line E fatigued through the wavy lines would provide an estimate of the:
A. Recession fluctuation
B. Growth trend
C. Natural charge per unit of unemployment
D. Recovery tendency

3.  A trough in the business organisation cycle occurs when:
A. Cyclical unemployment is at a minimum point
B. Employment and output reach their lowest levels
C. The natural rate of unemployment is at a minimum signal
D. Structural and frictional unemployment are at their highest levels

four.  In the expansion stage of a business cycle:
A. The inflation charge per unit decreases, only productive capacity increases
B. The inflation rate and productive capacity decrease
C. Employment increases, but output decreases
D. Employment and output increase

five.  A recession is defined as:
A. A fall in the natural rate of unemployment
B. A rising in the natural charge per unit of unemployment
C. A autumn in real GDP that lasts half-dozen months or longer
D. The minimum bespeak in the business organization cycle earlier the recovery phase

6.  Some economists prefer to utilize the term business fluctuations rather than business cycles to describe the historical growth tape in the U.s.a. because:
A. Cycles include a trough stage while fluctuations do not
B. Cycles imply regularity while fluctuations practice not
C. Fluctuations include an expansion stage while cycles practice not
D. Fluctuations are relatively anticipated events

7.  In which industry or sector of the economic system is output least likely to be affected by the concern cycle?
A. Housing structure
B. Automobile production
C. Agronomical bolt
D. Capital goods production

eight.  Assuming the full population is 200 one thousand thousand, the labor strength is 100 million, and 92 million workers are employed, the unemployment charge per unit is:
A. iv per centum
B. 6 per centum
C. 8 percent
D. ten percent

9.  A nation has a population of 300 meg people. Of these, eighty million are retired, in the military, in institutions, or nether 16 years one-time. There are 210 million who are employed and x meg who are unemployed. What is the unemployment charge per unit?
A. iii.three percent
B. 3.half-dozen percentage
C. 4.five percent
D. v.2 pct

10.  The unemployment rate in an economy is 7.5 percent. The total population of the economy is 250 million and the size of the noncombatant labor forcefulness is 180 one thousand thousand. The number of employed workers in this economy is:
A. thirteen.5 million
B. xv.vii meg
C. 166.5 1000000
D. 174.6 1000000

xi.  In calculating the unemployment rate, "discouraged" workers who are not actively seeking employment are:
A . Excluded
B. Included
C. Treated the same as part-time workers
D. Used to determine the size of the labor forcefulness

12.  Official unemployment charge per unit statistics may:
A. Overstate the amount of unemployment past including function-fourth dimension workers in the calculations
B. Understate the amount of unemployment by excluding function-time workers in the calculations
C. Enlarge the amount of unemployment because of the presence of "discouraged" workers who are not actively seeking employment
D . Understate the amount of unemployment because of the presence of "discouraged" workers who are not actively seeking employment

thirteen.  The best example of a "frictionally unemployed" worker is one who:
A. Reduces productivity past causing frictions in a business
B. Is laid off during a recessionary period in the economic system
C. Is in the process of voluntarily switching jobs
D . Is discouraged and not actively seeking work

14.  Kevin has lost his task in an automobile establish considering of the use of robots for welding on the assembly line. Kevin plans to go to technical school to learn how to repair microcomputers. The type of unemployment Kevin is faced with is:
A. Cyclical
B. Frictional
C. Structural
D. Natural

fifteen.  Unemployment that occurs when in that location is scarce demand for the goods and services of an economy is called:
A. Frictional unemployment
B. Cyclical unemployment
C. Structural unemployment
D. Natural unemployment

16.  Working equally an elevator operator used to be a mutual job in the workforce four decades ago, but today few jobs remain. The unemployment created by the introduction of automated elevators would be considered:
A. Wait
B. Cyclical
C. Frictional
D. Structural

17. The natural rate of unemployment:
A. Ways that the economy will always operate at its natural rate
B. Means that the economy will always realize its potential output
C. Is equal to the total of frictional and structural unemployment
D. Is a fixed unemployment charge per unit that does not modify over fourth dimension

eighteen. The descriptions give the responses of 4 individuals to a Agency of Labor Statistics (BLS) survey of employment.
1. Mollie just graduated from college and is now looking for piece of work. She has had three task interviews in the past month.
ii. George works in an automotive assembly plant. He was laid off six months ago as the economic system weakened. He expects to return to piece of work in several months when national economic weather condition improve.
3. Jeanette worked as an aircraft design engineer for a company that produces military machine shipping until she lost her task last year when the Federal government cutting defense spending. She has been looking for similar work for a yr but no visitor seems interested in her aircraft blueprint skills.
4. Ricardo lost his job last year when his company downsized and laid off center-level managers. He tried to notice another job for a year, but was unsuccessful and quit looking for piece of work

Refer to the above information.

Which individual is frictionally unemployed?

Which individual is structurally unemployed?

Which individual is cyclically unemployed?

Which individual would exist classified as a discouraged worker?

19.  At the full-employment unemployment charge per unit there is only:
A. Cyclical and frictional unemployment
B. Frictional and structural unemployment
C. Demand-deficient unemployment
D. "discouraged workers" unemployment

20.  The Gross domestic product gap measures the amount by which:
A. Nominal GDP exceeds real GDP
B. Actual Gdp exceeds potential GDP
C. Potential Gdp exceeds actual Gross domestic product
D. Bodily GDP exceeds national income

21.  If the Gdp gap is negative, then:
A. The inflation rate is rising
B. The unemployment rate is falling
C. Potential GDP is less than actual GDP
D. Actual Gdp is less than potential GDP

22.  If unemployment is above the natural rate of unemployment, then potential GDP is:
A. Equal to the Gdp gap
B. Equal to bodily Gross domestic product
C. Less than actual Gdp
D. Greater than actual GDP

23.  The higher the rate of unemployment:
A. The larger is the Gross domestic product gap
B. The smaller is the GDP gap
C. The higher the level of actual Gdp
D. The college the level of potential Gross domestic product

24.  If the natural rate of unemployment was 6 percent, the current unemployment charge per unit was 12 percent, and the nominal GDP was $iv,000 billion, then according to Okun'south law the economy would have sacrificed:
A. $240 billion in potential output
B. $ 480 billion in potential output
C. $700 billion in potential output
D. $840 billion in potential output

25.  In an economy nominal Gdp is $4,000 billion. The actual unemployment rate is viii per centum and the natural charge per unit of unemployment is half dozen percent. According to Okun's law in that location will be:
A. $80 billion lost in potential output
B. $100 billion lost in potential output
C. $160 billion lost in potential output
D. $300 billion lost in potential output

26.  "Depression ways idleness. And idleness means loss of skills, loss of self-respect, plummeting morale, family unit disintegration, and sociopolitical unrest." This quote describes some of the:
A. Consequences of the hyperinflation that accompanies a recession
B. Reasons for the natural rate of unemployment
C. Noneconomic costs of unemployment
D. Characteristics of structural unemployment

27.  Inflation is a:
A. Sustained decline in the general level of prices
B. Sustained ascent in the general level of prices
C. 1-fourth dimension change in the full general level of prices
D. Movement of the economy toward total-employment

28.  The Consumer Toll Index was 115 one yr and 120 the next year. The rate of inflation from i year to the next was approximately:
A. two.2 pct
B. 2.9 percent
C. three.4 pct
D. 4.three pct

29.  Over a ten-year menses, the Consumer Price Index doubled. On the basis of this information we can say that the average annual rate of inflation over this flow was approximately:
A. 10 percent
B. 9 percent
C. 7 percent
D. 5 percent

30.  If the Consumer Price Index was 165 in one twelvemonth and 175 in the next yr, and then the rate of aggrandizement from one year to the next was approximately:
A. 4.3 percentage
B. 5.vii pct
C. six.1 percent
D. 7.5 pct

31.  The price level has doubled in 35 years. The approximate annual percentage rate of increase in the price level over this period has been:
A. fifty percent
B. 20 percent
C. five percentage
D. 2 percent

32.  Inflation acquired past an increase in aggregate spending is referred to as:
A. Cost-push button inflation
B. Need-push inflation
C. Demand-pull inflation
D. Hyperinflation

33.  Which is a right statement?
A. It is relatively easy to distinguish between price-push and need-pull inflation even if you don't know the source of the aggrandizement
B. A supply shock will cause a variation of demand-pull aggrandizement that can lead to hyperinflation
C . Demand-pull aggrandizement will continue so long as there is excess total spending in the economic system
D. Cost-push inflation will continue because increased per unit cost will lead to a reduced supply

34.  Aggrandizement caused by a rise in per unit of measurement production costs is referred to as:
A. Cost-push aggrandizement
B. Demand-pull aggrandizement
C. Unanticipated inflation
D. Hyperinflation

35.  In an economy, only 2 resources, majuscule and labor, are used to produce 50 units of output. If the total cost of upper-case letter resources is $125 and the full price of labor resources is $25, and so the per unit production costs are:
A. $150
B. $100
C. $9
D. $3

36.  The view that unions may be a source of inflation would be all-time associated with the:
A. Supply-shock view of inflation
B. Cost-push view of inflation
C. Wage-push view of inflation
D. Demand-pull view of inflation

37.  If a person's nominal income increases past 5% while the price level increases by 2%, the person's real income:
A. Increases by iii%
B. Increases by 5%
C. Decreases by 7%
D. Decreases by 2%

38.  If the price level increases by xv percentage while nominal income increases past 8 percent, then in percentage terms real income would:
A. Rise by about 8 percentage
B. Fall by about eight percentage
C. Autumn by nearly seven pct
D. Fall past well-nigh fifteen percent

39.  The pct modify in ane'southward real income can be approximated by:
A. Dividing real income past the toll level, expressed every bit an index number
B. Dividing the price level, expressed equally an index number, by nominal income
C. The percentage change in price level minus the percentage change in nominal income
D. The percentage change in nominal income minus the pct alter in the price level

40.  Unanticipated aggrandizement tends to penalize:
A. People who save coin in financial institutions
B. Individuals who borrow money from financial institutions
C. Businesses which borrow coin from financial institutions
D. Governments which take a progressive personal income tax

41. Assume that in that location is a fixed rate of involvement on contracts for borrowers and lenders. If unanticipated inflation occurs in the economy, and so:
A. Both lenders and borrowers benefit
B. Both lenders and borrowers are injure
C. Borrowers are hurt, but lenders benefit
D. Lenders are hurt, just borrowers benefit

42. A worker would be hurt least by inflation when the:
A. Worker anticipates inflation and increases savings at the depository financial institution
B. Worker is protected past a cost-of-living aligning clause in an employment contract
C. Worker is protected by stock-still almanac increases in wages and benefits in an employment contract
D. Government increases the level of social security retirement benefits to correct for the effects of anticipated inflacion

43. In what circumstances would lenders nearly benefit?
A . When in that location is an unanticipated decrease in inflation
B. When there is an anticipated increase in inflation
C. When at that place is an unanticipated increase in inflation
D. When there is an predictable decrease in inflacion

44. With no inflation, a bank would be willing to lend a business organization firm $five million at an annual interest charge per unit of 6%. But, if the rate of inflation was anticipated to be 4%, the depository financial institution would most probable charge the firm an annual interest charge per unit of:
A. ii percent
B. 4 percent
C. 6 percent
D. 10 percentage

45. In the 1920s, Germany experienced an economic status which can exist all-time described as:
A. Hyperinflation
B. Toll-button aggrandizement
C. Unanticipated inflation
D. Anticipated aggrandizement

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Source: https://sites.google.com/a/g.rit.edu/auknotes/principles-of-macroeconomics/chapter-09/chapter-9-tutorial-answers-incomplete

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