MACROECONOMICS (CHAPTER 5) UNEMPLOYMENT AND INFLATION

THE PERIOD IN THE BUSINESS CYCLE MARKED BY A RELATIVELY HIGH LEVEL OF REAL GDP AND FULL EMPLOYMENT IS CALLED

• RECOVERY

• TROUGH

• PEAK

• RECESSION

WHICH OF THE FOLLOWING IS A SEQUENCE OF A TYPICAL BUSINESS CYCLE?

• RECOVERY, PEAK, TROUGH, RECESSION

• RECESSION, PEAK, RECOVERY, TROUGH

• PEAK, RECESSION, TROUGH, RECOVERY

• TROUGH, RECOVERY, PEAK, RECESSION

WHAT DOES "FULL EMPLOYMENT" MEAN?

• THERE IS NO CYCLICAL UNEMPLOYMENT

• EVERY PERSON WHO WANTS TO WORK HAS A JOB

• REAL Y IS EQUAL TO POTENTIAL Y

• THOSE WHO WANT TO WORK HAVE FULL-TIME JOBS

THE LABOR FORCE IS

• THE TOTAL NUMBER OF PEOPLE EMPLOYED AND UNEMPLOYED

• THE RATIO OF THOSE EMPLOYED TO THOSE UNEMPLOYED

• THE NUMBER OF PEOPLE EMPLOYED MINUS THE UNEMPLOYED

• THE RATIO OF THE LABOR FORCE TO THE POPULATION

WHICH OF THE FOLLOWING ARE NOT TYPES OF UNEMPLOYMENT?

• CYCLICAL UNEMPLOYMENT

• SEASONAL UNEMPLOYMENT

• FRICTIONAL UNEMPLOYMENT

• DISCOURAGED WORKER UNEMPLOYMENT

A FRESH LAW GRADUATE SEARCHING FOR A PLACE TO BEGIN HIS PRACTICE IS AN EXAMPLE OF

• FRICTIONAL UNEMPLOYMENT

• STRUCTURAL UNEMPLOYMENT

• SEASONAL UNEMPLOYMENT

• CYCLICAL UNEMPLOYMENT

BASED ON THE FOLLOWING INFORMATION, CALCULATE THE UNEMPLOYMENT RATE:

LABOR FORCE = 10,560,900

EMPLOYED PERSON = 7,387,280

TOTAL POPULATION = 25,500,210

• 12.45%

• 30.05%

• 41.41%

• 69.95%

THE CONSUMER PRICE INDEX WAS 136 IN 2014 AND 187 IN 2015. THE RATE OF INFLATION IN YEAR 2015 WAS ..........................

• 14.5%

• 27.27%

• 37.5%

• 72.3%

INFLATION IS A PROCESS IN WHICH

• THE PRICE LEVEL IS RISING

• DEMAND ALWAYS INCREASES

• THE VALUE OF MONEY IS INCREASING

• THE PRICE LEVEL OF CERTAIN COMMODITIES INCREASE

THE PHASE OF BUSINESS CYCLE IN WHICH REAL OUTPUT IS AT ITS MAXIMUM IS A

• TROUGH

• PEAK

• RECESSION

• RECOVERY