Overview
Chapter 11
Introduction to Macroeconomics: Unemployment, Inflation, and Economic Fluctuations
True/false
1. Nearly every society desires to achieve the macroeconomic goals of high employment, a stable price level, and high economic growth.
ANS: T
PTS: 1 DIF: E
TOP: 11.1 Macroeconomic Goals | Three Major Macroeconomic Goals
2. The Employment Act of 1946 dictated the U.S. goal of maintaining high employment through high economic growth but did not specify any goals with regard to the price level.
ANS: F
PTS: 1 DIF: E
TOP: 11.1 Macroeconomic Goals | Acknowledging Our Goals: The Employment Act of 1946
3. The unemployment rate measures the number of unemployed people expressed as a percentage of the total population.
ANS: F
PTS: 1 DIF: E
TOP: 11.2 Employment and Unemployment | What Is the Unemployment Rate?
4. The cost of unemployment to society includes loss of the goods and services that might have been produced if the unemployed had been employed.
ANS: T
PTS: 1 DIF: E
TOP: 11.2 Employment and Unemployment | The Consequences of High Unemployment
5. Each person in the population can be classified as employed, unemployed, or not in the labor force.
ANS: T
PTS: 1 DIF: E
TOP: 11.2 Employment and Unemployment | What Is the Unemployment Rate?
6. Each person in the population can be classified as employed or unemployed.
ANS: F
PTS: 1 DIF: E
TOP: 11.2 Employment and Unemployment | What Is the Unemployment Rate?
7. Economists consider cyclical unemployment to be the byproduct of a healthy economy.
ANS: F
PTS: 1 DIF: M
TOP: 11.3 Types of Unemployment | Cyclical Unemployment
8. Cyclical unemployment rises and falls with fluctuations in the macroeconomy.
ANS: T
PTS: 1 DIF: E
TOP: 11.3 Types of Unemployment | Cyclical Unemployment
9. New inventions may displace some workers, but generally lead to the growth of jobs in new industries.
ANS: T
PTS: 1 DIF: M
TOP: 11.3 Types of Unemployment | Structural Unemployment
10. Economists refer to the “typical” rate of unemployment as the natural rate of unemployment.
ANS: T
PTS: 1 DIF: E
TOP: 11.3 Types of Unemployment | The Natural Rate of Unemployment
11. Frictional unemployment is the temporary unemployment that results from the search time that occurs when people are searching for suitable jobs and firms are looking for suitable workers.
ANS: T
PTS: 1 DIF: E
TOP: 11.3 Types of Unemployment | Structural Unemployment
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