Question

One question has 5 parts. Please answer all of them for me. Thank you.

-Which of the following is most closely related to the notion that "the economy is inherently unstable AND that government intervention is needed to stabilize the economy"?

Group of answer choices

Keynesian economics

Maoism

Marxism

Socialism

Classical economics

-

Suppose you have lost your manufacturing job at the typewriter factory because consumers use computer processing rather than typewriters.   Which of the following types of unemployment is most relevant?

Group of answer choices

frictional unemployment

natural rate of unemployment

countercyclical unemployment

structural unemployment

cyclical unemployment

-

Suppose Rogerland has a population of 200 million people.   In Rogerland 150 million people are employed and 32 million people are unemployed.  

What is the unemployment rate in Rogerland?

Group of answer choices

none of the answers which appear in this question

16%

17.6%

84%

32%

-

Which economist is considered to be the “father of macroeconomics”?

Group of answer choices

John Maynard Keynes

Adam Smith

Arthur Laffer

None of the above

Milton Friedman

-

Which of the following is most relevant to the part of the business cycle which is measured from the trough to the height of the previous peak ?

Group of answer choices

recovery

depression

recession

counter cycle

expansion

-

What is the formula for the Marginal Propensity to Consume (MPC)?

Group of answer choices

income divided by consumption

None of the above

consumption divided by income

the change in consumption divided by a change in income

the change in income to a change in consumption

Answer 1

1. Keynesian economics is most closely related to the notion that economy is inherently unstable and that government intervention is needed to stabilize

2. Structural unemployment is caused due to technological change\

3. Suppose Rogerland has a population of 200 million people.   In Rogerland 150 million people are employed and 32 million people are unemployed.

Assuming labor force= 150+32= 182 million

umemployment rate= (number of unemployed people/ total baour force)*100= (32/182)*100=17.58%= 17.6 %

4. Father of macroeconomics is John Maynard Keynes

5.Trough to height of previous peak shows recession

6. The Marginal Propensity to Consume (MPC) the change in consumption divided by a change in income