Homework Answers
Ans) the correct option is e) there is only the natural rate of unemployment
When actual output is equal to potential output, there is a natural rate of unemployment
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Question 18 (5 points) When the economy is producing its potential GDP: a) There is only...
Potential real GDP is O A. the level of GDP attained when most firms are producing...
Potential real GDP is O A. the level of GDP attained when most firms are producing at capacity and unemployment is low. OB. the level of GDP attained when only some firms have excess capacity. O C. the level of GDP attained when all firms are producing at capacity. OD. the level of GDP attained when all firms have excess capacity Potential real GDP
The rate of unemployment when the economy is at its potential output is called the: Multiple...
The rate of unemployment when the economy is at its potential output is called the: Multiple Choice frictional rate of unemployment. natural rate of unemployment. structural rate of unemployment. non-recessionary rate of unemployment.
If the cost of a typical consumption basket in an economy rises from $40 to $48...
If the cost of a typical consumption basket in an economy rises from $40 to $48 in a period of one year, then there is an inflation of __________ in that time period. 8 8% 20% O 44 The cost of a typical consumption basket in $48 in 2015. In the base year, the cost of the same basket was $36. Then the price level in 2015 is 0 75 133 O 100 40 If an economy's output is more...
When an economy is at its natural rate of unemployment, which of the following will be...
When an economy is at its natural rate of unemployment, which of the following will be true? The unemployment rate will be 0% Only frictional unemployment will exist in the economy. Only structural unemployment as a result of technological changes will exist in the economy. The unemployment rate will be greater than 0% The labour force participation rate will be 100%
The demand for automobiles rises when the economy experiences an expansion. If an automobile manufacturer hires...
The demand for automobiles rises when the economy experiences an expansion. If an automobile manufacturer hires additional workers during an expansion, this would be best described as an example of a reduction in a) cyclical unemployment. b) natural unemployment. c) structural unemployment. d) frictional unemployment. When the Fed increases the rate of growth of the money supply to jump start the economy, the unemployment type that will be directly affected is the a) frictional unemployment. b) cyclical unemployment. c) structural...
Question 83 (Mandatory) (1 point) Which term refers to the rate of unemployment that occurs when...
Question 83 (Mandatory) (1 point) Which term refers to the rate of unemployment that occurs when the economy is producing its potential GDP? a) the natural rate of unemployment b) cyclical unemployment c) structural unemployment d) the normal rate of unemployment Question 84 (Mandatory) (1 point) Exhibit 14-3 Price level Potential output LRAS SRAS AD Real GDP Refer to the graph in the exhibit. In this situation, how could the Bank of Canada return the economy to potential output? a)...
When real GDP grows more slowly than potential GDP, a. nominal GDP rises. b. the unemployment...
When real GDP grows more slowly than potential GDP, a. nominal GDP rises. b. the unemployment rate falls. c. labor productivity falls. d. the unemployment rate rises. 8. The unemployment rate is the number of unemployed people, expressed as a. a ratio of total employed to the population. b. a ratio of unemployed to the total employed. c. a percentage of the labor force. d. a percentage of the population. 9. If part of the labor force is unemployed, the...
A recessionary gap exists when the macro economy is in equilibrium at less than the potential...
A recessionary gap exists when the macro economy is in equilibrium at less than the potential output of the the economy because aggregate demand is insufficient to fully employ all of society's resources. In other words, the equilibrium (AD = AS) occurs to the left of the vertical long-run supply curve. At this point, potential output is reached (full employment) and if any unemployment occurs, then it is due to structural or frictional, that is, the economy is at its...
If the unemployment rate for the U.S. economy rises from 7 to 11 percent during a...
If the unemployment rate for the U.S. economy rises from 7 to 11 percent during a year, we can conclude that actual GDP exceeds potential GDP. actual GDP is less than potential GDP. the economy is experiencing only frictional unemployment. the natural rate of unemployment for the U.S. economy has risen.
When an economy experiences a recession, it is producing -potential Real GDP -less than potential Real...
When an economy experiences a recession, it is producing -potential Real GDP -less than potential Real GDP -less or more than potential REAL GDP. it depends on the cause of the recession.
Potential real GDP is O A. the level of GDP attained when most firms are producing at capacity and unemployment is low. OB. the level of GDP attained when only some firms have excess capacity. O C. the level of GDP attained when all firms are producing at capacity. OD. the level of GDP attained when all firms have excess capacity Potential real GDP
The rate of unemployment when the economy is at its potential output is called the: Multiple Choice frictional rate of unemployment. natural rate of unemployment. structural rate of unemployment. non-recessionary rate of unemployment.
If the cost of a typical consumption basket in an economy rises from $40 to $48 in a period of one year, then there is an inflation of __________ in that time period. 8 8% 20% O 44 The cost of a typical consumption basket in $48 in 2015. In the base year, the cost of the same basket was $36. Then the price level in 2015 is 0 75 133 O 100 40 If an economy's output is more...
When an economy is at its natural rate of unemployment, which of the following will be true? The unemployment rate will be 0% Only frictional unemployment will exist in the economy. Only structural unemployment as a result of technological changes will exist in the economy. The unemployment rate will be greater than 0% The labour force participation rate will be 100%
Question 83 (Mandatory) (1 point) Which term refers to the rate of unemployment that occurs when the economy is producing its potential GDP? a) the natural rate of unemployment b) cyclical unemployment c) structural unemployment d) the normal rate of unemployment Question 84 (Mandatory) (1 point) Exhibit 14-3 Price level Potential output LRAS SRAS AD Real GDP Refer to the graph in the exhibit. In this situation, how could the Bank of Canada return the economy to potential output? a)...
A recessionary gap exists when the macro economy is in equilibrium at less than the potential output of the the economy because aggregate demand is insufficient to fully employ all of society's resources. In other words, the equilibrium (AD = AS) occurs to the left of the vertical long-run supply curve. At this point, potential output is reached (full employment) and if any unemployment occurs, then it is due to structural or frictional, that is, the economy is at its...
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