Macroeconomics Review

The type of unemployment that is related to the business cycle is:

• Frictional

• Structural

• Cyclical

• None of the above

The Keynesian model states that the economy could be in an inflationary gap for a long period of time. (True or false)

When the economy experiences economic growth, but the natural rate of unemployment decreases, we say that the economy is in a:

• Deflationary gap

• Full employment level

• Recessionary gap

• None of the above

If an economy has a recession (with unemployment) and a rising price level, we call it:

The main difference between the Keynesian model and the monetarist model is:

• Price flexibility

• The shape of the AD

• The impossibility of analyzing the long run

• None of the above

In the Keynesian diagram, in which section of the curve can the economy could actually depict an increase in GDP together with a rising price level?

• Section I

• Section III

• Section II

• None of the above

Which of the following is a factor that can shift to the right the LRAS or the Keynesian AS?

• Improvements in technology

• Institutional changes

• Improvements in the quality of FoP

• All of the above

______________ is when people of working age with part-time jobs when they would rather work full time, or with jobs that do not make full use of their skills and education.

If the unemployment rate of a country is 6%, then we can say that 6% of the population are unemployed. (True or false)

The unemployment rate is calculated by using the following formula:

• number of unemployed/total population * 100

• number of underemployed/labor force * 100

• number of unemployed/labor force * 100

• none of the above