Chapter 09 – Business Cycles, Unemployment, and Inflation
58. If the natural rate of unemployment was 6 percent, the current unemployment rate was 10
percent, and the potential GDP was $4,000 billion, then according to Okun’s law the economy
would have sacrificed:
59. Okun’s law indicates that for:
60. If the natural rate of unemployment is 4.5 percent and the actual unemployment rate is 6.5
percent, then Okun’s law indicates that the GDP gap is:
Chapter 09 – Business Cycles, Unemployment, and Inflation
61. A high unemployment rate most likely means that there is a:
62. The rate of unemployment tends to be lowest for:
63. Unemployment rates for skilled workers compared to unemployment rates for unskilled
workers are:
Chapter 09 – Business Cycles, Unemployment, and Inflation
64. The unemployment rates in the U.S. from 1999 to 2009 were in the range of:
65. In the Great Recession of 2007-2009, unemployment rates for men:
66. “Depression means idleness. And idleness means loss of skills, loss of self-respect,
plummeting morale, family disintegration, and sociopolitical unrest.” This quote describes
some of the:
Chapter 09 – Business Cycles, Unemployment, and Inflation
67. From 1999 to 2009, the unemployment rate in the United States compared with other
industrially advanced nations, such as France and Germany, has been:
68. Inflation is a rise in:
69. When inflation occurs:
Chapter 09 – Business Cycles, Unemployment, and Inflation
70. The CPI compiled by the Bureau of Labor Statistics is used in the computations for:
71. If the Consumer Price Index for a certain year is 120, this means that the average price of
consumer items in that year was:
72. If the Consumer Price Index was 170 in one year and 180 in the next year, then the rate of
inflation is approximately:
Chapter 09 – Business Cycles, Unemployment, and Inflation
73. The inflation rate measures the percentage growth rate of:
74. Which of the following measures the changes in the prices of a “market basket” of some
300 goods and services purchased by typical urban consumers?
75. Which measure of inflation would include consumer goods and capital goods?
Chapter 09 – Business Cycles, Unemployment, and Inflation
76. If the Consumer Price Index was 125 in one year and 120 in the following year, then the
rate of inflation is approximately:
77. If the Consumer Price Index was 90 in one year and 100 in the following year, then the
rate of inflation is about:
78. If the CPI declines from one year to the next, then the following statements are true,
except:
Chapter 09 – Business Cycles, Unemployment, and Inflation
79. Which of the following statistics can turn negative?
80. The economy has an annual inflation rate of 3.5%. It will take approximately how many
years for the price level to double?
81. Over a ten-year period, the Consumer Price Index doubled. On the basis of this
information and using the rule of 70, we can say that the average annual rate of inflation over
this period was approximately:
Chapter 09 – Business Cycles, Unemployment, and Inflation
82. Inflation rates in the U.S. from 1960 to 2009 were within the range of:
83. Inflation rates in the U.S. reached double-digit rates in the:
84. Which of the following countries experienced deflation for several years in the period
1999-2009?
Chapter 09 – Business Cycles, Unemployment, and Inflation
85. Inflation caused by an increase in aggregate spending is referred to as:
86. Inflation that occurs when total spending is greater than the economy’s ability to produce
output at the existing price level is:
87. A statement that is often used to describe demand-pull inflation is:
Chapter 09 – Business Cycles, Unemployment, and Inflation
88. Which of the following is a correct statement?
89. Inflation caused by a rise in the prices of inputs is referred to as:
90. When oil and energy prices rise, the economy tends to experience:
Chapter 09 – Business Cycles, Unemployment, and Inflation
91. Only two resources, capital and labor, are used in an economy to produce an output of 600
million units. If the total cost of capital resources is $300 million and the total cost of labor
resources is $100 million, then the per-unit production costs in this economy are:
92. In an economy, only two resources, capital and labor, are used to produce 50 units of
output. If the total cost of capital resources is $125 and the total cost of labor resources is $25,
then the per unit production costs are:
93. When total input costs rise slower than the total units of output produced, then the per-unit
production costs:
Chapter 09 – Business Cycles, Unemployment, and Inflation
94. If you knew that the per-unit production cost was $8 and that the total cost of inputs was
$1,000, then the number of units of output would be:
95. Cost-push inflation tends to be characterized by all of the following, except:
96. Core inflation refers to the inflation picture after stripping away the:
Chapter 09 – Business Cycles, Unemployment, and Inflation
97. For a given amount of nominal income, the real income will:
98. If the average level of nominal income in a nation is $44,000 and the price level index is
175, the average real income would be about:
99. Real income will rise from one year to the next if nominal income: