nMankiw5eTB_28

nMankiw5eTB_28 - Chapter 28 Unemployment TRUE/FALSE 1. Most...

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Unformatted text preview: Chapter 28 Unemployment TRUE/FALSE 1. Most people rely on income other than their labor earnings to maintain their standard of living. ANS: F DIF: 1 REF: 28-0 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Income | Standard of living MSC: Definitional 2. The amount of unemployment that a country typically experiences is a determinant of that country's standard of living. ANS: T DIF: 1 REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment | Standard of living MSC: Definitional 3. Some degree of unemployment is inevitable in a complex economy. ANS: T DIF: 1 REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment MSC: Definitional 4. The amount of unemployment varies little over time and across countries. ANS: F DIF: 1 REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Unemployment MSC: Definitional 5. When a country keeps its workers as fully employed as possible, it achieves a higher level of GDP than it would if it left many of its workers standing idle. ANS: T DIF: 1 REF: 28-0 NAT: Analytic LOC: The study of economics and definitions of economics TOP: Employment | GDP MSC: Definitional 6. An economys natural rate of unemployment refers to the amount of unemployment that the economy normally experiences. ANS: T DIF: 1 REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Definitional 7. Cyclical unemployment refers to the year-to-year fluctuations in unemployment around its natural rate. ANS: T DIF: 1 REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Cyclical unemployment MSC: Definitional 8. The natural rate of unemployment is closely associated with the short-run ups and downs of economic activity. ANS: F DIF: 1 REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Definitional 9. The natural rate of unemployment is the desirable rate of unemployment for an economy. ANS: F DIF: 1 REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Definitional 10. The natural rate of unemployment is constant over time. ANS: F DIF: 1 REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Definitional 11. The natural rate of unemployment is impervious to economic policy. ANS: F DIF: 1 REF: 28-0 NAT: Analytic LOC: Unemployment and inflation TOP: Natural rate of unemployment MSC: Definitional This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 57 58 Chapter 28/Unemployment 12. Government policy can do nothing about the natural rate of unemployment....
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nMankiw5eTB_28 - Chapter 28 Unemployment TRUE/FALSE 1. Most...

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