Macro Review 2

What is inflation?

• A rise in people looking for jobs who can't find one

• A decrease in people looking for jobs who can't find one

• A decrease in general prices

• A rise in general prices

What type of unemployment did people experience during the Great Depression?

• Seasonal
• Structural/Technological
• Cyclical
• Frictional

What causes cost-push inflation?

• An increase in demand for goods and services

• An increase in supply

• A rise in resource costs passed on to consumers

• A fall in the price of imports

What causes demand-pull inflation?

• A rise in price due to a decrease in supply

• A rise in price level due to an increase in consumption

• A rise in price due to an increase in the cost of production

• A decrease in price due to a decrease in supply

What is the healthy percentage for inflation?

• Below 6%

• Below 5%

• Below 3%

• 3-4%

What type of unemployment is represented: A literary editor leaves her job in New York to look for a new job in San Francisco.

• Frictional

• Cyclical

• Structural

• Seasonal

What type of unemployment is represented: An unemployed college graduate is looking for his first job.

• Frictional

• Cyclical

• Structural

• Seasonal

What type of unemployment is represented: Slumping sales lead to the cashier being laid off.

• Frictional

• Cyclical

• Structural

• Seasonal

What type of unemployment is represented: Seth is laid off from work because he is a life guard at the local water park. He is experiencing what kind of unemployment?

• Structural

• Seasonal

• Frictional

• Cyclical

Choose a response below based on the following prompt; "I feel very comfortable with material presented in Macroeconomics."

• Strongly Agree

• Agree

• Disagree

• Strongly Disagree