Which person can be categorized as a discouraged worker?
Candy Kane worked at Mama's Used Cars until two months ago. She is trying to find work in her
... [Show More] dream profession as a chocolatier.
Andy Friese was formerly employed at Mama's Used Cars. He has not worked there for six months and has given up looking for work.
Dan Druff currently works at Mama's Used Cars. He expects to be laid off in two weeks.
Mildred Ender currently works for Mama's Used Cars. She is unhappy when she realizes that there are no promotion opportunities at Mama's Used Cars.
Andy Friese was formerly employed at Mama's Used Cars. He has not worked there for six months and has given up looking for work.
The labour force is comprised of
the number of people counted as either full‑time or part‑time workers.
the number of people counted as employed, unemployed, and discouraged workers.
the number of people counted as employed and the number of people counted as unemployed.
the number of people counted as full‑time employees.
the number of people counted as employed and the number of people counted as unemployed.
Consider each person's situation to determine who would be counted among the "unemployed."
Laura works 20 hours in a paid position for her local animal shelter. She would like to work more but cannot find a job that offers her more hours.
Erik volunteers 10 hours a week at his children's school and does no other work. He sends his resume to 10 potential employers daily.
Pete had a knee replacement two weeks ago and will not work at his workplace for the next three months.
James quit his job to stay at home with his children and has not worked in 15 years, nor has he looked for work.
Who meets the definition of "unemployed"?
James
Erik
Laura
Pete
Erik
Which individual is out of the labor force?
Carol is without a job, is able to work, and is actively looking for work.
Michael is working 35 hours per week.
James is without a job, is able to work, but is not actively looking for work.
Isabella is working 3 hours per week.
James is without a job, is able to work, but is not actively looking for work.
Which is true if a nation is currently experiencing full employment?
Only structural unemployment exists.
The rate of cyclical unemployment is 0%
Every person who wants a job is able to find a job.
5%5% of the population is without a job.
The rate of cyclical unemployment is 0%
What is a real price?
A real price refers to the actual price you pay for a good.
A real price refers to a price that has been adjusted to account for inflation.
A real price refers to the retail price, not the sales price.
All of the above describe real prices.
A real price refers to a price that has been adjusted to account for inflation.
Suppose there is unexpected deflation this year that reduces the aggregate price level by 10%.
How does deflation affect borrowers and lenders?
Borrowers are positively impacted and lenders are negatively impacted.
Both borrowers and lenders are negatively impacted.
Both borrowers and lenders are positively impacted.
Borrowers are negatively impacted and lenders are positively impacted.
Borrowers are negatively impacted and lenders are positively impacted.
The equation of exchange, M×V=P×QM×V=P×Q, relates to the quantity theory of money. In this equation, M represents the supply of money, V represents the velocity of money, P represents the price level, and Q is real output.
Which of the statements describes an implication of this equation in the long run?
Both money supply (M) and money velocity (V) are held constant.
Changes in the money supply (ΔM)(ΔM) will balance out with changes in velocity (ΔV)(ΔV) .
Money supply increases (ΔM)(ΔM) will directly increase real GDP
.Changes in the money supply (ΔM)(ΔM) will balance out with changes in prices (ΔP)(ΔP) .
Changes in the money supply (ΔM)(ΔM) will balance out with changes in prices (ΔP)(ΔP) .
What is the neutrality of money with respect to the quantity theory of money?
The money supply can affect the growth rate of prices (inflation) in the long run.
The money supply cannot affect the growth rate of real GDP in the long run.
The money supply can affect the growth rate of the real GDP in the short run.
All of the above.
All of the above.
Given the equation of exchange set forth by the quantity theory of money (M×V=P×Q)(M×V=P×Q) , where MM is the supply of money, VV is the velocity of money, PP is the price level, and QQ is real output, which of the statements best defines QQ?
The average number of times a dollar is spent in a given period of time.
The quantity of goods and services produced within an economy.
The total amount of currency, coins, and banking sector.
The average of level of prices for a given basket of goods.
The quantity of goods and services produced within an economy.
Which scenario would lead to a decrease in the long‑run aggregate supply curve in the hypothetical country of Saigonia?
Saigonia's candy producers invest in new machinery for making candy.
Saigonia abolishes its mandatory retirement age.
The most successful Saigonian candy makers relocate their means of
production outside of Saigonia.
Saigonia's main export is candy, and global demand for Saigonian candy decreases significantly as it loses popularity.
The most successful Saigonian candy makers relocate their means of production outside of Saigonia.
The graph shows the aggregate demand and Solow growth curves for a given economy. Assume this is a typical economy relying on inputs such as coal and oil.
Which three factors could have caused this change in potential real GDP?
Good Farming weather
An improvement in technology
Coal price decrease
increase in exports
a major bird flu panemic
Increased consumer confidence
oil price increase
riots and political instability
Good Farming weather
An improvement in technology
Coal price decrease
The dynamic aggregate demand (AD) curve is modeled as a downward-sloping line.
Which of the statements is the best explanation for why the dynamic AD has this shape?
Lower levels of inflation are associated with lower levels of economic growth.
A proportional increase in spending for every decrease in the growth rate is required to keep inflation constant.
A proportional increase in inflation for every decrease in the growth rate is required to keep the growth in spending constant.
A proportional decrease in inflation for every decrease in the growth rate is required to keep the growth in spending constant.
A proportional increase in inflation for every decrease in the growth rate is required to keep the growth in spending constant.
The graph shows the aggregate demand (AD) curve and the long‑run aggregate supply (LRAS) curve for a hypothetical economy. Suppose that the economy observes a reduction in the world price of oil, an input in many production processes. Show the effect of this change by shifting one of the curves in the graph.
How will this change affect the rate of inflation?
Inflation will be unchanged.
Inflation will fall.
Inflation will rise.
How will this change affect the growth rate?
The growth rate will increase
The growth rate will be unchanged.
The growth rate will decrease.
Inflation will fall.
The growth rate will increase.
Which statement is an example of an open market operation?
The central bank lowers the interest rate from 5% to 3% on the loans it gives to commercial banks.
Naftali runs a bazaar in Baghdad selling odds and ends type trinkets to tourists.
The central bank sells bonds to the public via the commercial banking system.
A bank loans out all but 5% of its funds to hold in storage.
The central bank sells bonds to the public via the commercial banking system.
Liquidity is best defined as
money with no intrinsic value.
the ease of converting an asset into cash.
the direct exchange of goods and services for other goods and services.
anything that is accepted in exchange for goods or for the payment of debt.
Identify which asset is the most liquid.
stock certificate
6 month certificate of deposit
real estate
checking account
the ease of converting an asset into cash.
checking account
A country's financial system provides three services to savers and borrowers. One of these services is
the ability of savers and borrowers to maintain a low interest rate.
the ability of savers to have perfect information.
the ability of the financial system to transfer information.
the ability of the financial system to buy and sell stocks.
the ability of the financial system to transfer information.
Financial advisers frequently advise clients to diversify their portfolios.
a. What does it mean to diversify a portfolio?
to continuously move money between multiple assets
to invest in a variety of assets that aren't closely correlated.
to seek out investments with varying interest rates
b. Why do savers diversify?
to maximize the amount of money that is invested in the market
to get a varied perspective on the market
to minimize exposure to risk
to invest in a variety of assets that aren't closely correlated.
to minimize exposure to risk [Show Less]