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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
29-62
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written consent of McGraw-Hill Education.
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?
29-63
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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?
29-64
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written consent of McGraw-Hill Education.
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
29-65
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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?
29-66
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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
29-67
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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
29-68
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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
29-69
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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?
29-72
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?
29-74
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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
29-75
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
29-77
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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
29-79
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
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.
29-80
Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
D. actual GDP exceeds national income.
