Category: Macroeconomics

QUESTION Cyclical unemployment is the result of the ups and downs in inflation. a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs. the search process of matching workers with jobs. a slowdown in the economy. ANSWER The correct option is 4. a slowdown in the economy.

QUESTION The labor force equals the number of people employed plus unemployed. employed. unemployed. in the working-age population. ANSWER The correct option is 1. employed plus unemployed.

QUESTION The term business cycle refers to the short-term ups and downs in the price level. long-term trends in the price level. short-term ups and downs in the level of economic activity. long-term trends in the level of economic activity. ANSWER The correct option is 3. short-term ups and downs in the level of economic […]

QUESTION The GDP deflator is a measure of the average level of prices of final goods and services in the economy. average level of prices of intermediate goods and services in the economy. total production of the economy unadjusted for inflation. total production of the economy adjusted for inflation. ANSWER The correct option is 1. […]

QUESTION Which one is the definition of structural unemployment? Unemployment caused by the institutional structure of an economy or by economic restructuring making some skills obsolete Unemployment that occurs during recessions and depressions. The percentage of people in the economy who are both able to and looking for work but who cannot find jobs Unemployment […]

QUESTION Real GDP is GDP in a given year adjusted only for anticipated inflation. valued in the prices of the base year. adjusted only for unanticipated inflation. valued in the prices of that year. ANSWER The correct option is 2. valued in the prices of the base year.

QUESTION The GDP deflator is a measure of the average level of prices of final goods and services in the economy. average level of prices of intermediate goods and services in the economy. total production of the economy unadjusted for inflation. total production of the economy adjusted for inflation. ANSWER The correct option is 1. […]

QUESTION Nominal GDP is GDP in a given year valued in the prices of the base year. adjusted for anticipated inflation. valued in the prices of that year. adjusted for inflation. ANSWER The correct option is 3. valued in the prices of that year.

QUESTION Legalizing all forms of illegal activities reduces GDP and the size of the underground economy. increases GDP and increases the size of the underground economy. reduces GDP and increases the size of the underground economy. increases GDP and reduces the size of the underground economy. ANSWER The correct option is 4. increases GDP and […]

QUESTION The purchase by a foreign government of an airplane produced in the United States is included in U.S. investment expenditures. net exports. government purchases. consumption expenditures. ANSWER The correct option is 2. net exports.