Werner Fall 2018 3 with answers.pdf - Exam Name_ MULTIPLE...

Exam
Name___________________________________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) On a graph with real GDP growth on the x - axis and the unemployment rate on the y - axis, you
plot each year's values for the United States as a separate point. What does the overall trend in
this graph look like?
A) A horizontal line B) An upward - sloping line
C) A downward - sloping line D) A vertical line
1)
2) If the economy is in an expansion this quarter, it will probably ________. 2) 3) Which feature of economic fluctuations was NOT present during the Great Depression? 3)
4) A country's marginal product of labor falls during winter due to excessive cold. Which of the
following is likely to happen in this case, assuming all else equal?
4) 5) Assuming all else equal, when the labor demand curve shifts to the left, ________.
A) inflation rises B) output falls
C) equilibrium wage rises D) unemployment falls
5)
1

The figure below shows the labor demand and labor supply curves for an economy.
6) Refer to the figure above. The labor market is currently at point E. Which of the following is
likely to happen if a recession hits the economy, assuming that wages are flexible?
6)
7) Refer to the figure above. The economy is currently at E. Which of the following is likely to
happen if a recession hits the economy, assuming that there is downward rigidity of wages?