The Presence Of Discouraged Workers

Macroeconomics – Tutorial Chapter 09

ane.

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

2. Refer to the above diagram. The straight line E drawn through the wavy lines would provide an judge of the:
A. Recession fluctuation
B. Growth trend
C. Natural rate of unemployment
D. Recovery tendency

3. A trough in the business bicycle 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 betoken
D. Structural and frictional unemployment are at their highest levels

4. In the expansion phase of a business cycle:
A. The inflation rate decreases, just productive capacity increases
B. The inflation rate and productive capacity decrease
C. Employment increases, but output decreases
D. Employment and output increment

5. A recession is defined as:
A. A autumn in the natural rate of unemployment
B. A rise in the natural rate of unemployment
C. A fall in real GDP that lasts six months or longer
D. The minimum point in the business cycle before the recovery phase

half dozen. Some economists prefer to use the term business concern fluctuations rather than business cycles to depict the historical growth record in the United States because:
A. Cycles include a trough phase while fluctuations practise non
B. Cycles imply regularity while fluctuations do not
C. Fluctuations include an expansion phase while cycles practice non
D. Fluctuations are relatively anticipated events

7. In which manufacture or sector of the economy is output to the lowest degree likely to be afflicted by the business organization cycle?
A. Housing construction
B. Automobile product
C. Agricultural bolt
D. Uppercase goods production

8. Assuming the full population is 200 million, the labor force is 100 million, and 92 one thousand thousand workers are employed, the unemployment rate is:
A. 4 percent
B. 6 percent
C. 8 pct
D. 10 percent

ix. A nation has a population of 300 1000000 people. Of these, 80 million are retired, in the military, in institutions, or nether xvi years old. At that place are 210 million who are employed and x million who are unemployed. What is the unemployment charge per unit?
A. three.3 percent
B. iii.half-dozen percent
C. iv.v percentage
D. v.2 percent

10. The unemployment rate in an economy is 7.5 percentage. The full population of the economy is 250 million and the size of the civilian labor strength is 180 million. The number of employed workers in this economy is:
A. xiii.5 1000000
B. 15.vii 1000000
C. 166.5 million
D. 174.6 million

11. In computing 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 make up one's mind the size of the labor strength

12. Official unemployment rate statistics may:
A. Overstate the amount of unemployment past including role-fourth dimension workers in the calculations
B. Understate the corporeality of unemployment by excluding part-fourth dimension workers in the calculations
C. Overstate the amount of unemployment considering of the presence of "discouraged" workers who are not actively seeking employment
D . Understate the corporeality of unemployment because of the presence of "discouraged" workers who are non actively seeking employment

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

14. Kevin has lost his job in an car constitute because 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

15. Unemployment that occurs when there is deficient need for the goods and services of an economy is chosen:
A. Frictional unemployment
B. Cyclical unemployment
C. Structural unemployment
D. Natural unemployment

16. Working as an elevator operator used to be a common job in the workforce 4 decades ago, but today few jobs remain. The unemployment created past the introduction of automatic elevators would be considered:
A. Wait
B. Cyclical
C. Frictional
D. Structural

17. The natural rate of unemployment:
A. Means that the economy will e'er operate at its natural rate
B. Means that the economic system will ever realize its potential output
C. Is equal to the total of frictional and structural unemployment
D. Is a stock-still unemployment rate that does non change over time

18. The descriptions give the responses of 4 individuals to a Bureau of Labor Statistics (BLS) survey of employment.
1. Mollie but graduated from college and is now looking for work. She has had three job interviews in the past month.
2. George works in an automotive assembly plant. He was laid off half dozen months ago every bit the economy weakened. He expects to return to work in several months when national economic atmospheric condition ameliorate.
three. Jeanette worked equally an shipping design engineer for a company that produces military aircraft until she lost her job last year when the Federal authorities cut defense force spending. She has been looking for similar piece of work for a year but no visitor seems interested in her shipping design skills.
four. Ricardo lost his task last year when his visitor downsized and laid off middle-level managers. He tried to find another chore for a year, only was unsuccessful and quit looking for piece of work

Refer to the above data.

Which individual is frictionally unemployed?

Which private is structurally unemployed?

Which individual is cyclically unemployed?

Which individual would be classified equally a discouraged worker?

19. At the full-employment unemployment rate in that location is but:
A. Cyclical and frictional unemployment
B. Frictional and structural unemployment
C. Demand-scarce unemployment
D. "discouraged workers" unemployment

xx. 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. Actual GDP exceeds national income

21. If the GDP gap is negative, and so:
A. The inflation rate is rising
B. The unemployment rate is falling
C. Potential GDP is less than actual Gdp
D. Bodily Gross domestic product is less than potential Gross domestic product

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

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

24. If the natural rate of unemployment was 6 percent, the current unemployment rate was 12 percent, and the nominal Gdp was $4,000 billion, and then according to Okun's law the economy would take 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 $four,000 billion. The bodily unemployment rate is 8 percent and the natural rate of unemployment is six percent. According to Okun's police force there will be:
A. $fourscore 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 ways loss of skills, loss of self-respect, plummeting morale, family 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 full general level of prices
B. Sustained rise in the general level of prices
C. Onetime change in the general level of prices
D. Movement of the economic system toward full-employment

28. The Consumer Price Index was 115 1 year and 120 the adjacent year. The rate of aggrandizement from one yr to the next was approximately:
A. ii.ii percent
B. 2.9 percent
C. 3.4 percent
D. 4.three percent

29. Over a ten-year period, the Consumer Toll Alphabetize doubled. On the basis of this information we can say that the average annual rate of inflation over this catamenia was approximately:
A. ten percent
B. ix percent
C. 7 percent
D. 5 percent

30. If the Consumer Cost Index was 165 in 1 year and 175 in the adjacent year, then the rate of inflation from one yr to the next was approximately:
A. 4.three pct
B. 5.7 percent
C. 6.1 percent
D. 7.5 pct

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

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

33. Which is a correct statement?
A. It is relatively easy to distinguish betwixt cost-button and demand-pull aggrandizement even if you lot don't know the source of the inflation
B. A supply shock will cause a variation of demand-pull aggrandizement that tin can lead to hyperinflation
C . Demand-pull inflation volition go on and then long every bit in that location is excess total spending in the economy
D. Price-button inflation will continue because increased per unit cost will pb to a reduced supply

34. Inflation caused by a ascension in per unit production costs is referred to as:
A. Price-push button inflation
B. Demand-pull inflation
C. Unanticipated inflation
D. Hyperinflation

35. In an economy, but 2 resources, capital and labor, are used to produce fifty units of output. If the total cost of capital letter resources is $125 and the full cost of labor resources is $25, then the per unit product costs are:
A. $150
B. $100
C. $9
D. $3

36. The view that unions may be a source of aggrandizement would exist best associated with the:
A. Supply-daze view of aggrandizement
B. Cost-button view of aggrandizement
C. Wage-push view of inflation
D. Demand-pull view of inflation

37. If a person's nominal income increases by 5% while the price level increases by two%, the person's real income:
A. Increases past 3%
B. Increases by 5%
C. Decreases by 7%
D. Decreases by 2%

38. If the price level increases by fifteen percent while nominal income increases by viii percent, then in per centum terms real income would:
A. Rising past near viii per centum
B. Fall by about eight per centum
C. Fall past virtually 7 percent
D. Fall by about 15 percentage

39. The percentage alter in ane's real income tin exist approximated past:
A. Dividing real income by the price level, expressed as an index number
B. Dividing the toll level, expressed as 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 percentage alter in the toll level

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

41. Assume that there is a fixed rate of interest on contracts for borrowers and lenders. If unanticipated inflation occurs in the economic system, then:
A. Both lenders and borrowers benefit
B. Both lenders and borrowers are hurt
C. Borrowers are hurt, merely lenders benefit
D. Lenders are hurt, but borrowers do good

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

43. In what circumstances would lenders most benefit?
A . When there is an unanticipated decrease in inflation
B. When there is an anticipated increment in aggrandizement
C. When there is an unanticipated increase in inflation
D. When there is an predictable decrease in inflacion

44. With no aggrandizement, a bank would exist willing to lend a concern house $5 million at an annual interest rate of 6%. But, if the rate of inflation was anticipated to be four%, the depository financial institution would nearly probable charge the firm an almanac interest rate of:
A. two percentage
B. iv percent
C. 6 percent
D. 10 percent

45. In the 1920s, Germany experienced an economic condition which tin can exist best described as:
A. Hyperinflation
B. Price-button inflation
C. Unanticipated inflation
D. Predictable aggrandizement