chapter_06_-_growth_and_cycles

chapter_06_-_growth_and_cycles - Test Bank Macroeconomics:...

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Page 1 of 20 Test Bank Macroeconomics: Theory and Policy Chapter 06: Growth and Cycles B. Modjtahedi Question 1 Which of the following recessions was most severe in terms of unemployment? A. 1974-75 B. 1980-82 C. 1990-91 D. 2001 E. None of the above Question 2 A feature of the 1980-82 recession was: A. A large reduction in real GDP, but not much increase in unemployment. B. A high inflation rate, but a low unemployment rate. C. A large increase in unemployment, but little or no change in real GDP. D. A low inflation rate and a low unemployment rate. E. None of the above. Question 3 Unemployment rate equals: A. Total unemployed divided by the population. B. Total unemployed divided by the labor force. C. Total unemployed divided by the total employed. D. Total unemployed divided by the number of available jobs. E. None of the above. Question 4 The unemployment that resulted from the contraction in the U.S. textile industry due to foreign competition can be characterized as A. Frictional unemployment. B. Structural unemployment. C. Cyclical unemployment. D. Total unemployment. E. None of the above Question 5 A man is fired from his job because he fell asleep on his keyboard too many times. He then started looking for another job. During the time he is searching, he will be classified as: A. Not in labor force. B. Cyclically unemployed. C. Frictionally unemployed. D. Structurally unemployed. E. None of the above.
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Employed 88,000 people Unemployed 12,000 people Population 240,000 people Question 6 The table above pertains to a hypothetical country. The natural rate of unemployment in this country is 3% and the structural rate of unemployment is 1%. The cyclical rate of unemployment in this country is: A. 12% B. 9% C. 5% D. 3% E. None of the above. Question 7 The table above pertains to a hypothetical country. The natural rate of unemployment in this country is 3% and the structural rate of unemployment is 1%. In this country the number of jobs available equals: A. 100,000 B. 152,000 C. 91,000 D. 88,000 E. None of the above. Question 8 The table above pertains to a hypothetical country. The natural rate of unemployment in this country is 3% and the structural rate of unemployment is 1%. If this country produces the potential level of output, the number of people employed will be: A. 240,000 B. 100,000 C. 97,000 D. 88,000 E. None of the above Question 9 The unemployment that resulted from the September 11, 2001 terrorist attack and the resulting recession can best be described as: A. Frictional unemployment. B. Structural unemployment. C. Cyclical unemployment. D. Natural unemployment. E. None of the above. Question 10 In a country the size of the labor force is 100,000 and the natural rate of unemployment is 4%. Currently the unemployment rate is 10%. Each worker in this country can produce 2 units of output. A. Real GDP in this country is less than potential.
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This note was uploaded on 03/24/2010 for the course ECON Econ1B taught by Professor Baghermodjtahedi during the Spring '09 term at UC Davis.

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chapter_06_-_growth_and_cycles - Test Bank Macroeconomics:...

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