FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 9: Business Cycles, Unemployment, and Inflation

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

Multiple Choice

Review LaterAdd Note

Review Later

A headline reads: "Steel industry suffers slump as import competition increases and unemployment rises." This type of unemployment can best be characterized in economic terms as:

A) frictional.
B) structural.
C) cyclical.
D) natural.

E) C) and D)
F) B) and D)

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

Depression means idleness.And idleness means loss of skills,loss of self-respect,plummeting morale,family disintegration,and sociopolitical unrest.This quote describes some of the:

A) consequences of the hyperinflation that accompanies a recession.
B) reasons for the natural rate of unemployment.
C) noneconomic costs of unemployment.
D) characteristics of structural unemployment.

E) None of the above
F) A) and B)

Correct Answer

verified

Show Answer

Question 63

Multiple Choice

Review LaterAdd Note

The descriptions give the responses of four individuals to Statistics Canada. 1.Mollie just graduated from university and is now looking for work.She has had three job interviews in the past month. 2.George works in an automotive assembly plant.He was laid off six months ago as the economy weakened.He expects to return to work in several months when national economic conditions improve. 3.Jeanette worked as an aircraft design engineer for a company that produces military aircraft until she lost her job last year when the federal government cut defence spending.She has been looking for similar work for a year but no company seems interested in her aircraft design skills. 4.Ryan lost his job last year when his company downsized and laid off middle-level managers.He tried to find another job for a year,but was unsuccessful and quit looking for work. -Refer to the above information.Which individual is frictionally unemployed?

Unanticipated inflation:

The following information is 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 -Refer to the above information.If 6 members of the labour force are presently counted as part of the unemployed when in fact they are employed,the official unemployment rate is overstated by:

During the Great Recession of 2008 - 2009 in Canada:

If the price level increases by 15 percent while nominal income increases by 8 percent,then in percentage terms real income would:

The following information is for a specific year in a hypothetical economy for which Okun's law is applicable: Potential Real GDP = $200 billion Natural rate of unemployment = 6 percent Actual rate of unemployment = 12 percent -The size of the GDP gap in percentage terms for the above economy is:

A worker would be hurt least by inflation when the:

Suppose that a person's nominal income rises by 5 percent and the price level rises from 125 to 130.The person's real income will:

At the economy's natural rate of unemployment:

In an economy,35 million workers are employed out of a labour force of 50 million and a total population of 70 million.The unemployment rate is:

To limit the loss of purchasing power from inflation:

The natural rate of unemployment in Canada is thought to be about 6-7 percent.

Anne Kasperson works in her own home as a full-time caretaker and homemaker.Officially,she is:

Working as an elevator operator used to be a common job in the workforce four decades ago,but today few jobs remain.The unemployment created by introduction of automatic elevators would be considered:

Inflation affects:

Kevin has lost his job in an automobile plant because of the use of robots for welding on the assembly line.Kevin plans to go to technical school to learn how to repair microcomputers.The type of unemployment Kevin is faced with is:

Assuming the total population is 100 million,the civilian labour force is 50 million,and 47 million workers are employed,the unemployment rate:

The price level has doubled in 35 years.The approximate annual percentage rate of increase in the price level over this period has been: