Economics Chapter 5 Macroeconomics Concerns Test Questions And Answers Verified 100% Correct

Economics Chapter 5 Macroeconomics Concerns Test Questions And Answers Verified 100% Correct Between a peak and a trough, the economy goes through a(n) A) expansion . B) inflation. C) recession. D) boom - ANSWER C Unemployment means that A) at the going wage rate, there are people who want to work but cannot find work. B) people are not willing to work at the going wage rate. C) there are some people who will not work at the going wage rate. D) there is excess demand in the labor market. - ANSWER A Unemployment implies that in the labor market A) there is an excess supply of labor. B) there is an excess demand for labor. C) there are too few workers for the jobs available. D) quantity demanded of labor exceeds quantity supplied. - ANSWER A The unemployment rate equals A) labor force/population. B) unemployed/employed. C) (employed - unemployed)/labor force. D) (labor force - employed)/labor force. - ANSWER D The unemployment rate equals A) labor force/population. B) unemployed/employed. C) (employed - unemployed)/labor force. D) unemployed/labor force. - ANSWER D If the labor force is 50 million and 48 million are employed then the unemployment rate is: A) 2%. B) 4%. . C) 5% D) 52%. - ANSWER B If 20 million workers are unemployed and 180 million workers are employed, then the unemployment rate is A) 10%. B) 11.1%. C) 18%. D) 80%. - ANSWER A The period in the business cycle from a trough to peak is called a(n) A) recession. B) expansion. C) slump. D) depression. - ANSWER B If output is rising and unemployment is falling, the economy MUST be in a(n) A) contraction. B) expansion. C) depression. D) hyperinflationary period. - ANSWER B The period in the business cycle from a peak to a trough is a(n) A) recession. B) boom. C) expansion. D) inflation. - ANSWER A Unemployment generally ________ during recessions and ________ during expansions. A) falls; rises. B) falls; falls. C) rises; falls. D) rises; rises. - ANSWER C Which of the following statements is FALSE? A) The rate of change in economic activity is used to assess whether an economy is expanding or contracting. B) Short-term ups and downs in the economy are known as business cycles. C) During a recession, output and employment are falling. D) Business cycles are always symmetricthe length of an expansion is the same as the length of a contraction. - ANSWER D 1) If the central bank decreases the money supply, it is conducting A) monetary policy. B) supply-side policy. C) fiscal policy. D) incomes policy. - ANSWER A If Congress increases government spending, it is using A) monetary policy. B) supply-side policy. C) fiscal policy. D) incomes policy. - ANSWER C Government policies regarding taxes and expenditures are called A) fiscal policy. B) income policies. C) supply-side policy. D) monetary policy. - ANSWER A The government implements fiscal policy when it changes A) spending and/or interest rate. B) money supply and/or taxes. C) taxes and/or spending. D) taxes and/or interest rate. - ANSWER C The government wants to encourage consumer spending through cutting income taxes. This is an example of A) an incomes policy. B) a fiscal policy. C) a supply-side policy. D) a monetary policy. - ANSWER B The ________ can change the quantity of money in the economy. A) Treasury Department B) Federal Reserve C) Congress D) Office of the Comptroller of the Currency - ANSWER B The Federal Reserve affecting the supply of money is known as A) fiscal policy. B) monetary policy. C) growth policy. D) supply side policy. - ANSWER B Policies designed to affect the quantity of money are A) fiscal policies. B) supply side or growth policies. . C) government spending polici