Question

Q1 - The number of adults (people greater than or equal to 15 years of age) that are considered officially unemployed (by government-calculated statistics) is typically different from (and usually less than) the number of adults actually without a job. This situation may arise because:

i) The labor force (as calculated by government statistics) is inclusive only of adults who are either employed or actively seeking employment.

ii) Full-time students, homemakers, and retirees are not considered part of the labor force, unless they have a job or are actively seeking employment.

iii) Some adults without a job may no longer be actively seeking employment, as over time they become discouraged for any number of reasons, including a lack of required skills, training, and education.

A) i only

B) ii only

C) iii only

D) i and ii

E) i, ii and iii

Q2 - Which of the following would be considered frictional unemployment?

i) Canan, who was fired when the company where she worked went bankrupt in a recession

ii) Efe, who quit his job to find one that better suited his skills

iii) Pelin, who started looking for a job upon graduation from the university

A) iii only

B) i, ii and iii

C) i and ii

D) i and iii

E) ii and iii

Q3 - Structural unemployment is the result of

A) downturns in the business cycle.

B) changing labor needs by firms during the year.

C) voluntary job quitting by workers.

D) changes in the family structure.

E) technology changes or foreign competition.

Q4 - When the economy is at full employment,

A) the natural unemployment rate equals zero.

B) there is no structural or cyclical unemployment.

C) there is only frictional unemployment.

D) 100 percent of the labor force is employed.

E) there is no cyclical unemployment.

Q5 - If the unemployment rate is less than the natural unemployment rate, then

A) real GDP is greater than potential GDP.

B) frictional unemployment is negative.

C) cyclical unemployment is greater than zero.

D) real GDP is less than potential GDP.

E) there is no frictional unemployment.

Q6 - The discount rate is

A) equal to the nominal interest rate minus the inflation rate.

B) the interest rate that commercial banks have to pay for any reserves that they borrow from the non-bank public.

C) the interest rate that commercial banks have to pay to the owners of bank deposits.

D) the interest rate that commercial banks receive for the reserves that they keep at the central bank.

E) the interest rate that commercial banks pay for reserves that they borrow from the central bank.

Q7 - According to the AS-AD model,

A) the aggregate quantity supplied is typically greater than the aggregate quantity demanded, thereby leading to unemployment.

B) changes in the amount of natural rate of output (potential GDP) is the only factor that shifts both the aggregate supply curve and the aggregate demand curve.

C) the equilibrium is where the AS curve crosses the AD curve but the amount of real GDP at this point is not always equal to natural rate of output (potential GDP).

D) the AS curve is always equal to natural rate of output (potential GDP).

E) the aggregate quantity demanded is typically greater than the aggregate quantity supplied, thereby leading to inflation.

Q8 - An increase in investment ________ aggregate demand, the aggregate demand curve shifts ________ and the economy is in the ________ phase of the business cycle.

A) increases; rightward; expansion

B) increases; rightward; recession

C) increases; leftward; recession

D) decreases; rightward; expansion

E) decreases; leftward; recession

Q9 - If the price of oil rises, the

A) AD curve and the AS curve shift leftward, real GDP decreases, and the price level rises.

B) AD curve and the AS curve shift rightward, the price level rises, and real GDP decreases.

C) AS curve shifts leftward, the price level rises, and real GDP decreases.

D) AD curve shifts rightward, real GDP increases, and the price level rises.

E) AS curve shifts leftward, the price level rises, and real GDP increases.

Q10 - When we speak of the demand for ____________, we are concerned with how much of your financial assets you want to hold in the form of __________, which does not earn interest, versus how much you want to hold in interest-bearing securities, such as _________.

A) bonds ; money ; bonds

B) money ; currency ; checking accounts

C) money ; money ; bonds

D) bonds ; bonds ; money

Q11 - All of the following shift the demand for money curve EXCEPT

A) an increase in real GDP.

B) a decrease in real GDP.

C) an increase in the price level.

D) a rise in the nominal interest rate.

E) an improvement in financial technology.

Answer 1

Q1. Answer is (I only )

The labour force means actually working or willing to work... So government statistics considered the number of adults who either employed or actively seeking employed... It doesn't consider the adults without job may no longer be actively seeking a new job due to lack of skill, trying etc..

Q2. Answer is (E - II& III)

In the first case due to recession, her company went bankruptcy such type of unemployment is called cyclical unemployment second case , she quit her job for next better one... In the last two cases, they are searching for another A that is called frictional unemployment...

Q3. Answer is E ( technological change and foreign competition)

Structural unemployment occurs when the technological changes happening in the economy rather than fluctuations in the demand and supply.

Q4. Answer is E ( there is no cyclical unemployment)

When the economy is at full employment, the remaining unemployment is either frictional or structural... There is no cyclical unemployment or deficient demand unemployment... At the full employment level natural unemployment rate is not equal to zero which is greater than zero...