ECONOMICS 1120191 - Exam Name MULTIPLECHOICE. 1 -zerolevels in2008.,whichwouldallowG

ECONOMICS 1120191 - Exam Name MULTIPLECHOICE. 1 -zerolevels...

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ExamName___________________________________MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.1) Goodyear benefitted when the Federal Reserve slashed the federal funds rate to near-zero levelsin 2008. Lower interest rates increased demand for its tires, which would allow Goodyear to________ employment and ________ prices.A) increase; decreaseB) increase; increaseC) decrease; decreaseD) decrease; increaseAnswer: B1)Page Ref: 985/603Learning Outcome: Macro-14: Identify different types and measures of unemployment and discuss its causes.2) Evidence shows that many people who delay searching for a job for a year or longer after theyare laid offA) find it more difficult to find new employment than if they had searched for a new job soonafter they were laid off.B) find that the extra unemployment benefits they receive during their extended period ofunemployment more than make up for the difficulty in finding a job once they decide tore-enter the workforce.C) find it easier to find new employment than if they had searched for a new job soon afterthey were laid off.D) find that they have little to no chance to find new employment after being unemployed forso long.2)Answer: APage Ref: 985/603Learning Outcome: Macro-14: Identify different types and measures of unemployment and discuss its causes.3) The curve showing the short-run relationship between the unemployment rate and the inflationrate is called3)Page Ref: 986/604Learning Outcome: Macro-14: Identify different types and measures of unemployment and discuss its causes.4) According to the short-run Phillips curve, the unemployment rate and the inflation rate are4)Page Ref: 986/604Learning Outcome: Macro-12: Explain how monetary policy influences interest rates, aggregate demand, realGDP and inflation.1
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