978-1259723223 Test Bank TBChap029 Part 4

A c c essibi l i t y :

Keyboard Navigation

155.

During the Great Depression of the 1930s, U.S. real GDP fell by about percent, in

comparison to the percent decline during the Great

Recession of 2007–09.

156.

Which of the following groups declares the start and end of recessions in the United States?

157.

Some economists prefer to use the term business fluctuations rather than business cycles to

describe the historical growth record in the United States

because

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D.

fluctuations are relatively predictable events.

158.

General sources of shocks that can cause business cycles include the following, except

159.

Most economists agree that the immediate cause of the majority of cyclical changes in the

level of real output is unexpected changes in the

160.

The Great Recession that started in 2007 was triggered by shocks in which of the following

economic sectors?

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A.

gold market and stock market

B.

international trade and foreign exchange markets

C. real estate and financial markets

D. consumer and government spending

161.

In which industry or sector of the economy is output least likely to be affected by the

business cycle?

162.

Which statement is correct?

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Top ic:

The Business Cycle

163.

The unemployment rate is interpreted as the percentage of the

164.

Full-time homemakers and retirees are classified in the BLS data as

165.

The unemployed are those people who

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Difficulty:

02 Medium

Learning Objective: 29-02 Illustrate how unemployment is measured and explain the

different types of unemployment.

Test Bank: II

Top ic:

Unemployment

166.

Which of the following is the correct way to calculate the unemployment rate?

167.

If the total population is 200 million, the labor force is 100 million, and 92 million workers

are employed, then the unemployment rate would be

168.

A nation has a population of 260 million people. Of these, 60 million are retired, in the

military, institutionalized, or under 16 years old. There are 188

million who are employed and

12 million who are unemployed. What is the unemployment rate?

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B. 6 percent

C.

9 percent

D.

27 percent

169.

The unemployment rate in an economy is 6 percent. The total population of the economy is

290 million, and the size of the civilian labor force is 150

million. The number of unemployed

workers in this economy is

170.

The total population of an economy is 175 million, the labor force is 125 million, and the

number of employed workers is 117 million. The

unemployment rate for this economy is

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different types of unemployment.

Test Bank: II

Top ic:

Unemployment

171.

The total adult population of an economy is 175 million, the number of employed is 122

million, and the number of unemployed is 17 million. The

percentage of adults who are not in

the labor force is

172.

The unemployment rate in an economy is 7.5 percent. The total population of the economy

is 250 million and the size of the civilian labor force is 180

million. The number of employed

workers in this economy is

173.

In calculating the unemployment rate, “discouraged” workers who are not actively seeking

employment are

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B.

included as part of the unemployed.

C.

treated the same as part-time workers.

D.

used to determine the size of the labor force.

174.

In calculating the unemployment rate, part–time workers are

175.

Official unemployment rate statistics may

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Test Bank: II

Top ic:

Unemployment

176.

The best example of a “frictionally unemployed” worker is one who

177.

A worker who loses a job at a call center because the company moved the call center

operations to another country is an example of

178.

Kevin has lost his job in an automobile plant because the company switched to robots for its

welding step in 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

179.

New college graduates still looking for their first jobs would be classified in the BLS data

as

180.

A headline states, “Real GDP falls again as the economy slumps.” This condition is most

likely to produce what type of unemployment?

181.

Unemployment that occurs when there is deficient demand for the goods and services of an

economy is called

182.

Which of the following statements is correct?

183.

A mismatch between the geographic location of workers and the location of job openings

would result in which type of unemployment?

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184.

Search and wait unemployment is another way to describe

185. The accompanying list describes the responses of four individuals to a Bureau of Labor

Statistics (BLS) survey of employment.

1.

Mollie just graduated from college and is now looking for work. She has had three job

interviews in the past month but still has not gotten a job offer.

2.

George used to work in an automotive assembly plant. He was laid off six months ago as the

economy weakened. He expects to return to work in a few

months when national economic

conditions improve.

3.

Jeanette worked as an aircraft design engineer for a company that produces military aircraft

until she lost her job last year when the Federal

government cut defense spending. She has been

looking for similar work for a year, but no company seems interested in her aircraft design skills.

4.

Ricardo lost his job last year when his company downsized and laid off middle-level

managers. He tried to find another job for a year but was

unsuccessful and quit looking for

work.

Which individual is frictionally unemployed?

186. The accompanying list describes the responses of four individuals to a Bureau of Labor

Statistics (BLS) survey of employment.

1.

Mollie just graduated from college and is now looking for work. She has had three job

interviews in the past month but still has not gotten a job offer.

2.

George used to work in an automotive assembly plant. He was laid off six months ago as the

economy weakened. He expects to return to work in a few

months when national economic

conditions improve.

3.

Jeanette worked as an aircraft design engineer for a company that produces military aircraft

until she lost her job last year when the Federal

government cut defense spending. She has been

looking for similar work for a year, but no company seems interested in her aircraft design skills.

4.

Ricardo lost his job last year when his company downsized and laid off middle-level

managers. He tried to find another job for a year but was

unsuccessful and quit looking for

work.

Which individual is structurally unemployed?

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A c c essibi l i t y :

Keyboard Navigation

Blooms: Understand

Difficulty:

02 Medium

Learning Objective: 29-03 Explain how inflation is measured and distinguish between cost-

push inflation and demand-pull inflation.

Test Bank: II

Top ic:

Unemployment

187. The accompanying list describes the responses of four individuals to a Bureau of Labor

Statistics (BLS) survey of employment.

1.

Mollie just graduated from college and is now looking for work. She has had three job

interviews in the past month but still has not gotten a job offer.

2.

George used to work in an automotive assembly plant. He was laid off six months ago as the

economy weakened. He expects to return to work in a few

months when national economic

conditions improve.

3.

Jeanette worked as an aircraft design engineer for a company that produces military aircraft

until she lost her job last year when the Federal

government cut defense spending. She has been

looking for similar work for a year, but no company seems interested in her aircraft design skills.

4.

Ricardo lost his job last year when his company downsized and laid off middle-level

managers. He tried to find another job for a year but was

unsuccessful and quit looking for

work.

Which individual is cyclically unemployed?

188. The accompanying list describes the responses of four individuals to a Bureau of Labor

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Statistics (BLS) survey of employment.

1.

Mollie just graduated from college and is now looking for work. She has had three job

interviews in the past month but still has not gotten a job offer.

2.

George used to work in an automotive assembly plant. He was laid off six months ago as the

economy weakened. He expects to return to work in a few

months when national economic

conditions improve.

3.

Jeanette worked as an aircraft design engineer for a company that produces military aircraft

until she lost her job last year when the Federal

government cut defense spending. She has been

looking for similar work for a year, but no company seems interested in her aircraft design skills.

4.

Ricardo lost his job last year when his company downsized and laid off middle-level

managers. He tried to find another job for a year but was

unsuccessful and quit looking for

work.

Which individual would be classified as a discouraged worker?

189.

The accompanying list describes the responses of four individuals to a Bureau of Labor

Statistics (BLS) survey of employment.

1.

Mollie just graduated from college and is now looking for work. She has had three job

interviews in the past month but still has not gotten a job offer.

2.

George used to work in an automotive assembly plant. He was laid off six months ago as the

economy weakened. He expects to return to work in a few

months when national economic

conditions improve.

3.

Jeanette worked as an aircraft design engineer for a company that produces military aircraft

until she lost her job last year when the Federal

government cut defense spending. She has been

looking for similar work for a year, but no company seems interested in her aircraft design skills.

4.

Ricardo lost his job last year when his company downsized and laid off middle-level

managers. He tried to find another job for a year but was

unsuccessful and quit looking for

work.

Which individual(s) would be included in the calculation of the natural unemployment rate?

190.

“Full employment” refers to the situation when there is

191.

The full-employment rate of unemployment is also called the

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B.

cyclical rate of unemployment.

C.

frictional rate of unemployment.

D. natural rate of unemployment.

192.

The natural rate of unemployment

193.

The rate of unemployment when the economy is at its potential output is called the

considered to be

recession is that

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Blooms: Understand

Difficulty:

02 Medium

Learning Objective: 29-02 Illustrate how unemployment is measured and explain the

different types of unemployment.

Test Bank: II

Top ic:

Unemployment

197.

The downward stickiness of wages serves like a in the labor market.

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D. actual GDP exceeds national income.