chapter_16_-_inflation_and_unemployment

chapter_16_-_inflation_and_unemployment - Test Bank...

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Test Bank Macroeconomics: Theory and Policy Chapter 16: Inflation and Unemployment B. Modjtahedi Question 1 U.S. data shows that in most of the past recessions: A. The general price level had gone down, but the inflation rate had remained steady. B. Both the general price level and the inflation rate had increased. C. Both the general price level and the inflation rate had decreased. D. The general price level had gone up, but the inflation rate had gone down. E. None of the above. Question 2 U.S. data shows that except for the episodes of stagflation: A. Generally, during a recession the inflation and cyclical unemployment rates move in the same direction. B. Generally, during a recession inflation rate increases but cyclical unemployment rate decreases. C. Generally, during a recession inflation rate increases but cyclical unemployment rate remains steady. D. Generally, during a recession inflation rate decreases but cyclical unemployment rate increases. E. None of the above. Question 3 Which of the following statements is true about the relationship between price level and inflation rate over several years? A. They can both be constant. B. Inflation rate could be constant while the price level is increasing. C. Inflation rate could be constant while the price level is decreasing. D. All of the above. E. None of the above. Question 4 Which of the following statements is true about the relationship between price level and inflation rate over several years? A. The price level can go up while the inflation rate is going down. B. The price level can go up while the inflation rate is negative. C. The price level can stay the same while the inflation rate is negative. D. The price level can go down while the inflation rate is positive. E. None of the above. Question 5 Which of the following statements is true? A. In the medium run total unemployment is zero. B. In the medium run cyclical unemployment is zero. C. In the medium run frictional unemployment is zero. D. In the medium run structural unemployment is zero.
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E. None of the above. Question 6 Which of the following statements is true? A. In the medium run total unemployment equals cyclical unemployment. B. In the medium run cyclical unemployment equals natural unemployment. C. In the medium run total unemployment equals natural unemployment. D. In the medium run natural unemployment equals structural unemployment. E. None of the above. Question 7 Which of the following statements is most accurate about the relationship between the inflation and unemployment rates in the medium run? A. Total unemployment rate is zero regardless of the rate of inflation.
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chapter_16_-_inflation_and_unemployment - Test Bank...

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