Question 1

Consumption is approximately ________ of GDP.

Accepted Answer

A)   50%
B)   90%
C)   70%
D)   80%
E)   40%F) B) and D)
G) A) and B)

Question 2

Oranges become more expensive in 2008 at Ukrop's in Charlottesville,Virginia.This means the consumer price index (CPI) :

Accepted Answer

A)   will rise in 2008 if, and only if, Charlottesville is one of the 38 indexed geographic locations and oranges are one of the 8,000 goods included in the CPI.
B)   will almost certainly rise in 2008, even if Charlottesville is not included, as long as oranges are included and become more expensive on average at the other indexed locations.
C)   will likely fall if the average weighted price of oranges increases in the United States and the price of oranges at Ukrop's makes almost no difference in the CPI.
D)   might rise or fall and the price of oranges at Ukrop's could make a very small difference in the CPI if oranges at Ukrop's are included; however, oranges would be a relatively small portion of the entire CPI, if they are included in it at all.
E)   Orange prices are never included in the CPI because the creator of the CPI, Milton Marquis, did not like oranges.F) C) and D)
G) A) and B)

Question 3

Which of the following statements about the composition of the labor force is correct?

Accepted Answer

A)   Since 1948, the labor-force participation gap between males and females has decreased.
B)   Since 1948, the percentage of women participating in the labor force has decreased.
C)   Since 1948, the percentage of men participating in the labor force has increased.
D)   Since 1948, the percentage of women participating in the labor force has remained the same.
E)   Since 1948, the labor-force participation gap between males and females has risen.F) B) and C)
G) A) and E)

Question 4

Individuals who are NOT working but are willing to work and who have looked for a job in the past 12 months but have NOT sought employment in the past 4 weeks are defined as:

Accepted Answer

A)   unemployed.
B)   employed.
C)   unhappy workers.
D)   discouraged workers.
E)   retired.F) A) and E)
G) D) and E)

Question 5

Use the following table to answer the questions that follow.
 
-According to the table,the labor force is:

Accepted Answer

A)   138 million.
B)   215 million.
C)   77 million.
D)   147 million.
E)   68 million.F) None of the above
G) D) and E)

Question 6

If real GDP grew by 2% and the inflation rate was 2%,then nominal GDP grew by:

Accepted Answer

A)   2%.
B)   4%.
C)   0%.
D)   1%.
E)   3%.F) C) and E)
G) A) and D)

Question 7

The root cause of cyclical unemployment is:

Accepted Answer

A)   unemployment insurance.
B)   labor market regulations.
C)   delays in matching available workers with open jobs.
D)   recessions.
E)   changes in the industrial makeup of the economy.F) A) and D)
G) All of the above

Question 8

How does inflation affect savings?

Accepted Answer

A)   If inflation is small, then savings values are not affected.
B)   For savings value, deflation is the only thing to worry about.
C)   Only hyperinflation affects the value of savings.
D)   If your savings rate of return is less than inflation, then you lose money.
E)   If your savings rate of return is less than deflation, then you lose money.F) A) and B)
G) All of the above

Question 9

Refer to the following table to answer the questions that follow.
 
-As presented in the table,the rate of inflation from 1999-2000 (i.e.,during the year 2000) was (rounded to two decimal places) :

Accepted Answer

A)   7.00%.
B)   80.00%.
C)   87.00%.
D)   8.75%.
E)   10.00%.F) D) and E)
G) None of the above

Question 10

Refer to the following figure to answer the questions that follow.
 
-Based on the figure,one could correctly state that:

Accepted Answer

A)   although U.S.inflation was generally higher in the 1970s and 1980s, that situation was reversed in the later years for the European Union.
B)   inflation in both the United States and the European Union was higher in the 1990s than it was in the 1970s and 1980s.
C)   deflation was a problem in the United States and the European Union in the 1990s, but inflation was a problem for both in the 1970s and 1980s.
D)   U.S.and E.U.inflation both tended to be higher in the 1970s and 1980s than in the 1990s.
E)   typically, while the European Union had inflation problems, the United States had deflation problems.F) A) and B)
G) A) and C)

Question 11

Which of the following is included in the government purchases category of GDP?

Accepted Answer

A)   Social Security payments
B)   welfare payments
C)   payments to people in the military
D)   interest on the national debt
E)   payments to unemployed workersF) All of the above
G) B) and C)

Question 12

When you include discouraged workers and unemployed workers in calculations of the unemployment rate:

Accepted Answer

A)   this alternate measure is much lower than the official unemployment rate.
B)   the difference between this alternate measure and the official unemployment rate increases significantly during economic expansions.
C)   this alternate measure is the same as the official unemployment rate.
D)   this alternate measure is much higher than the official unemployment rate.
E)   this alternate measure is not useful in studying the macroeconomy.F) A) and B)
G) B) and E)

Question 13

Consider the following data that identifies real GDP in comparison to the long-run trend of real GDP to answer the questions that follow.
 
-Between quarter 10 and quarter 11,real GDP grew by what percentage?

Accepted Answer

A)   6%
B)   3%
C)   4%
D)   5%
E)   -5%F) None of the above
G) A) and B)

Question 14

What is the difference between a discouraged worker and an underemployed worker? Why is it important to understand both of these worker categories in order to fully understand the employment situation in an economy?

Accepted Answer

Discouraged workers are defined as those...

Question 15

Company X sells sugar to company Y for $50,000.Company Y uses the sugar to make chocolate bars,selling them to consumers for $150,000.The total contribution to GDP is:

Accepted Answer

A)   $200,000.
B)   $100,000.
C)   $30,000.
D)   $150,000.
E)   $50,000.F) B) and E)
G) A) and C)

Question 16

The definition of long-term unemployment is unemployment that lasts longer than ______ weeks.

Accepted Answer

A)   28
B)   4
C)   10
D)   14
E)   8F) B) and C)
G) A) and D)

Question 17

Deflation is best described as when:

Accepted Answer

A)   all prices in the economy fall.
B)   the prices of some goods rise and prices of some goods fall, but more goods have price increases than decreases.
C)   the prices of some goods rise and prices of some goods fall, but fewer goods have price increases than decreases.
D)   the overall level of prices of goods falls.
E)   the overall level of prices of goods rises.F) A) and C)
G) A) and B)

Question 18

Use the following table to answer the questions that follow.
 
-According to the table,the number of employed in this economy is equal to:

Accepted Answer

A)   95 million.
B)   161 million.
C)   84 million.
D)   18 million.
E)   179 million.F) A) and E)
G) A) and D)

Question 19

Refer to the following table to answer the questions that follow.
 
-As presented in the table,the rate of inflation (or deflation) from 2002-2003 was (rounded to two decimal places) :

Accepted Answer

A)   112.00%.
B)   108.00%.
C)   4.00%.
D)   -4.25%.
E)   -3.57%.F) A) and E)
G) B) and E)

Question 20

Quality changes are:

Accepted Answer

A)   easily accounted for in the consumer price index (CPI) .
B)   always included in the CPI.
C)   included in the gross domestic product (GDP)  deflator but not the CPI.
D)   generally included in both the CPI and the GDP deflator.
E)   at least partially adjusted for in the CPI.F) A) and C)
G) A) and E)

Exam 11: Measuring the Macroeconomy, Inflation, and Unemployment

If real GDP grew by 2% and the inflation rate was 2%,then nominal GDP grew by:

Correct AnswerverifiedShow Answer

Refer to the following figure to answer the questions that follow. -Based on the figure,one could correctly state that:

Correct AnswerverifiedShow Answer

Deflation is best described as when:

Correct AnswerverifiedShow Answer

How does inflation affect savings?

Correct AnswerverifiedShow Answer

The root cause of cyclical unemployment is:

Correct AnswerverifiedShow Answer

Use the following table to answer the questions that follow. -According to the table,the number of employed in this economy is equal to:

Correct AnswerverifiedShow Answer

Oranges become more expensive in 2008 at Ukrop's in Charlottesville,Virginia.This means the consumer price index (CPI) :

Correct AnswerverifiedShow Answer

Quality changes are:

Correct AnswerverifiedShow Answer

Consider the following data that identifies real GDP in comparison to the long-run trend of real GDP to answer the questions that follow. -Between quarter 10 and quarter 11,real GDP grew by what percentage?

Correct AnswerverifiedShow Answer

What is the difference between a discouraged worker and an underemployed worker? Why is it important to understand both of these worker categories in order to fully understand the employment situation in an economy?

Correct AnswerverifiedDiscouraged workers are defined as those...View AnswerShow Answer

Use the following table to answer the questions that follow. -According to the table,the labor force is:

Correct AnswerverifiedShow Answer

Which of the following statements about the composition of the labor force is correct?

Correct AnswerverifiedShow Answer

Refer to the following table to answer the questions that follow. -As presented in the table,the rate of inflation from 1999-2000 (i.e.,during the year 2000) was (rounded to two decimal places) :

Correct AnswerverifiedShow Answer

The definition of long-term unemployment is unemployment that lasts longer than ______ weeks.

Correct AnswerverifiedShow Answer

Consumption is approximately ________ of GDP.

Correct AnswerverifiedShow Answer

Refer to the following table to answer the questions that follow. -As presented in the table,the rate of inflation (or deflation) from 2002-2003 was (rounded to two decimal places) :

Correct AnswerverifiedShow Answer

When you include discouraged workers and unemployed workers in calculations of the unemployment rate:

Correct AnswerverifiedShow Answer

Company X sells sugar to company Y for $50,000.Company Y uses the sugar to make chocolate bars,selling them to consumers for $150,000.The total contribution to GDP is:

Correct AnswerverifiedShow Answer

Individuals who are NOT working but are willing to work and who have looked for a job in the past 12 months but have NOT sought employment in the past 4 weeks are defined as:

Correct AnswerverifiedShow Answer

Which of the following is included in the government purchases category of GDP?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Discouraged workers are defined as those...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified