Navigation » List of Schools » Glendale Community College » Economics » Econ 102 – Principles of Macroeconomics » Spring 2020 » iVAT Chapter 6
Below are the questions for the exam with the choices of answers:
Question #1
A The labor force to increase because the overall population of the country should shrink.
B The labor force to increase because the overall population of the country should increase because of immigration.
C The labor force to increase as previously discouraged workers re-entered the labor force.
D The labor force to decrease as previously discouraged workers choose to remain unemployed.
E The labor force to stay the same because the labor market is in equilibrium at that point.
Question #2
A the percentage of people in the economy who are willing and able to work full-time but cannot find full-time jobs.
B the percentage of the employed people in the economy that become unemployed each month.
C the percentage of people in the economy who are willing and able to work but cannot find jobs.
D the percentage of people in the economy who are not working.
E The dynamic rate of decline
Question #3
A Frictional unemployment
B Full employment
C Structural unemployment
D Cyclical Unemployment
E Fortified unemployment
Question #4
A The fact that secular growth trends have generally increased since World War II.
B Keynesian fiscal and monetary policies, where overall demand in the economy is managed.
C Increased trade between Europe and the United States after World War II.
D Classical fiscal policies where laissez-faire policies are implemented. This can lead to business cycles being dampened and smoothed.
E The fact that the economy has hit a long-term equilibrium point.
Question #5
A Equilibrium
B A structural stagnation
C A business cycle
D Keynesianism
E A recession
Question #6
A Moves past the trough and moves in an upward trajectory.
B Is in between the recessionary expansions.
C Hits an equilibrium point.
D Before it hits the trough or bottom of the business cycle.
E Hits the peak of the business cycle.
Question #7
A India
B Germany
C The United States
D China
Question #8
A The differences in growth rates in the economy, and the large impact that compound growth can have over long time periods.
B Compound growth and its tendency to create very small differences in living standards.
C The differences in amount of exports that both countries produce. Exports can have a large determining impact on overall living standards.
D The differences in savings rates between the two countries caused this disparity. The long-term growth of an economy is dependent on savings from its citizens.
E The difference in the consumption patterns between the two nations.
Question #9
A Per capita output, which is output divided by the population.
B The productive capacity of the economy, which is measured by total investment.
C Savings per capita, which is savings divided by the population.
D The long-term secular growth trend, as opposed to cyclical growth trends.
Question #10
A Creating incentives for for workers to enter the labor force.
B Increasing business confidence, so that businesses create jobs.
C Sustaining adequate aggregate demand to prevent high rates of unemployment.
D Creating incentives for businesses to increase rates of investment.
Question #11
A It is referring to a period in an economy where inflation is high and the economy is simultaneously in a recession.
B It is referring to a period in an economy where inflation is high and the economy is simultaneously simultaneously growing rapidly.
C It is referring to a period in an economy where unemployment is high and the economy is simultaneously in a recession.
D It is referring to a period in an economy where inflation is low and the economy is simultaneously in a recession.
Question #12
A Firms can reduce prices to reach a market equilibrium.
B Workers are likely to accept cuts in their nominal wages in order to reduce unemployment.
C Firms are likely to reduce prices if there is an oversupply of goods.
D Workers are likely to resist cuts in their nominal wages.
Question #13
A Unions, which cause wages to be higher than the market equilibrium wages.
B Decreased confidence by firms due to excessively low wages.
C A decrease in the productive capacity of the economy.
D An increase in the rates of return on investments.
Question #14
A Increasing the overall productive capacity of the economy
B Unemployment
C Creating incentive plans to increase the size of the labor force
D Secular growth trends