Macro - old exam 3 - ch 9,10,11 - fall 2010

Macro - old exam 3 - ch 9,10,11 - fall 2010 - A O B...

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A O B C D Savings Function Macroeconomics – old exam questions – Ch 9, 10, 11 1.During a severe recession, we would expect output to fall the most in: A. the health-care industry. B. the clothing industry. C. agriculture. -D. the construction industry. 2. The production of durable goods varies more than the production of nondurable goods because: A. durables purchases are nonpostponable. -B. durables purchases are postponable. C. the producers of nondurables have monopoly power. D. producers of durables are highly competitive. Answer the next question(s) on the basis of the following information about the hypothetical economy of Scoob. All figures are in millions. 3. Refer to the above information. The labor force in Scoob is: A. 95 million. -B. 102 million. C. 105 million. D. 145 million. 4. Refer to the above information. The unemployment rate in Scoob is: A. 2.5 percent. B. 3.2 percent. C. 5.0 percent. -D. 6.9 percent.
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5. Refer to the above information. If the natural rate of unemployment in Scoob is 5 percent, then: A. structural unemployment is about 3 percent. B. frictional unemployment is about 2 percent. -C. cyclical unemployment is about 2 percent. D. hidden unemployment is about 5 percent. 6. The United States' economy is considered to be at full employment when: A. 90 percent of the total population is employed. B. 90 percent of the labor force is employed. -C. about 4-5 percent of the labor force is unemployed. D. 100 percent of the labor force is employed. 7. The unemployment rate of: A. women greatly exceeds that of men. B. whites is roughly equal to that of African-Americans. C. white-collar workers exceeds that of blue-collar workers. -D. teenagers is much higher than that of adults. 8. Structural unemployment: A. is also known as frictional unemployment. B. is the main component of cyclical unemployment. C. is said to occur when people are waiting to be called back to previous jobs. -D. may involve a locational mismatch between unemployed workers and job openings. Answer the next question(s) on the basis of the following information about a hypothetical economy: Full-time employed = 80 Part-time employed = 25 Unemployed = 15 Discouraged workers = 5 Members of underground economy = 6 Consumer Price Index = 110 9. Refer to the above information. The unemployment rate is: A. 18.8 percent. -B. 12.5 percent. C. 16.7 percent. D. 25 percent.
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10. The aggregate cost of unemployment can be measured by the: A. amount by which actual GDP exceeds potential GDP. -B. amount by which potential GDP exceeds actual GDP. C. excess of real GDP over nominal GDP. D. excess of nominal GDP over real GDP. 11. Assume the natural rate of unemployment in the U.S. economy is 5 percent and the actual rate of unemployment is 9 percent. According to Okun's law, the negative GDP gap as a percent of potential GDP is: A. 4 percent. -B. 8 percent.
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This note was uploaded on 03/23/2011 for the course ECONOMICS 108E taught by Professor Rogridguez during the Fall '03 term at FIU.

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Macro - old exam 3 - ch 9,10,11 - fall 2010 - A O B...

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