Foundations of Economics - With MyEconLab
8th Edition
ISBN: 9780134641720
Author: BADE
Publisher: PEARSON
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Chapter 22, Problem 6MCQ
To determine
The scenario where the value of real
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A mild period of falling incomes and rising unemployment is called a:
A mild period of falling incomes and rising unemployment is called a:
A. business cycle
B. boom
C. recession
D. depression
In a country with a population of 70 million people, there are 30 million children under the age of 15 years, 20 million employed, 10 million pensioners, 7 million unemployed and looking for work.
a) The unemployment rate according to the strict definition is 35 %
b) The unemployment rate according to the expanded definition is 25.9 %
c) The unemployment rate according to the strict definition is 10 %
d) The unemployment rate according to the expanded definition is 33.3 %
Give typing answer with explanation and conclusion
The structural unemployment rate is 1.5 percent, the frictional unemployment rate is 3.1 percent, and the economy's current unemployment rate is 6.9 percent. The economy is in?
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Foundations of Economics - With MyEconLab
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- The natural unemployment rate is 5 percent and potential GDP is $10 trillion. If the unemployment rate is 9 percent, what is real GDP? Real GDP is _______. A. $10.8 trillion B. $9.2 trillion C. $9.6 trillion D. $10.4 trillionarrow_forward_______________________ happens when the economy is producing at its potential and unemployment is at the natural rate of unemployment. a) Stagflation b) The interest rate effect c) The foreign price effect d) Full employment GDP Question 2 1 / 1 point Melanie decided to save 20% of her annual earnings for 10 years so she would have a down payment for a house. After 5 years, what change in the economy would cause an increase in the purchasing power of the funds she has managed to save? a) stagflation b) depression c) deflation d) recession Question 3 1 / 1 point If the price level of what firms produce is rising across an economy, but the costs of production are constant, then: a) higher profits will induce expanded production. b) a majority of industries will start running into limits. c) increase in quantity produced won't be large. d) the maximum potential GDP will be exceeded. Question 4 1 / 1 point What term is used to describe the maximum quantity that…arrow_forwardDraw a diagram of GDP growth, inflation, and unemployment changing over time during a recession. Explain the timing on unemployment changes. Why might measured unemployment continue to rise after output starts to recover?arrow_forward
- The unemployment rate A. shows the percentage of the population that is considered unemployed. B- shows the percentage of the labor force that is considered unemployed. C. is the amount of people in the population that are not working D. is the amount of the labor force that is not working Suppose an economy is given by the following Population 258 million Labor force 161 million The number of people employed 154.6 million The number of people unemployed 6.4 million Given the information above. the unemployment rate is T% (Enter your response rounded to one decimal place)arrow_forwardIn April approx. 22 million people filed for unemployment ins. In March, the labor force was 162,913,000 with employment=155,772,000 and unemployed=7,140,000. (please answer part D) A. What would April's unemployment rate be approximately? 4.38% B. If unemployment is around 4% and from Okuns law approximately for every 1% point change in unemployment, GDP falls 2%, how much has GDP dropped in % terms? 8% C. If real GDP in March was $19,221.970 billion ($19.22 trillion), what is the drop in dollar value of production? $1,537,677,600,000 D. If JDL Forcasting announced that they predict the mpc has fallen to 0.5, how much government spending will need to be injected to get back to Unemployement(natural rate of unemployement where actual and potential output are back to long-run levels)arrow_forwardDuring a recession, the Part 2 A. cyclical rate of unemployment is positive. B. cyclical rate of unemployment is negative. C. cyclical rate of unemployment is zero. D. natural rate of unemployment has fallen.arrow_forward
- Use the data below that describes a nation’s population to answer the following questions: a) How many people are unemployed each year? b) How many people are employed each year? c) What impact would a recession have on the full-employment rate of unemployment of 4.0%? Year 1 Year 2 Population 330 million 335 million Labor Force 170 million 175 million Unemployment rate 7 percent 6 percentarrow_forwardWhat type of unemployment might older workers be more prone to experience? Explain how the unemployment rate of older workers is influenced by the business cycle. Older workers are more prone to experience _______ unemployment. During a recession, the unemployment rate of older workers _______. A. structural; decreases B. natural; remains constant C. structural; increases D. frictional; decreasesarrow_forwardThe actual unemployment rate is composed of three types. Identify each type and explain whether the government can really do anythingabout each of them and why. If the current unemployment rate were 9% would this be a problem and why? If the current unemployment rate were 1% would this be a problem and why?arrow_forward
- Suppose the real GDP of an economy is $400 billion dollars and its unemployment rate is 6%.If the natural rate of unemployment is estimated at 3%, what is the value of the country’s potential GDP (LAS) in billions of dollars?Value of the country’s potential GDP (LAS) is $ billion. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardSuppose there are 50 million persons in the population, 25 million persons in the civilian labor force, and 20 million persons are employed. The number of people unemployed is _______ million and the unemployment rate is ___________ percent. Please choose correct option- A. 25; 50 B. 5; 10 C. 5; 20 D. 10; 10arrow_forwardQ.1.4 Out of 20 million people in the population, 9 million people are in the labour forceand 3 million are unemployed, therefore the unemployment rate is: choose the correct answer(2)(a) 3 percent. (b) 15 percent. (c) 30 percent. (d) 33,3 percent.arrow_forward
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