Macroeconomics final COMPLETE EXAM LATEST
VERSION 2026-2027 QUESTIONS AND ANSWERS
The theory of efficiency wages explains why
A. setting wages at the equilibrium level may increase unemployment
B. it may be in the best interest of firms to offer wages that are above the equilibrium level
C. the most efficient way to pay workers is to pay them according to their skills
D. it is efficient for firms to set wages at the equilibrium level - answer>>C. the most efficient way to pay
workers is to pay them according to their skills
People who are unemployed because of job search are best classified as
A. cyclically unemployed
B. structurally unemployed
C. fictionally unemployed
D. discouraged workers - answer>>C. fictionally unemployed
People who are unemployed because the economy has shifted and no longer need that type of worker
are called
A. cyclically unemployed
B. structurally unemployed
C. frictionally unemployed
D. discouraged workers - answer>>B.
Job search
A. is one reason the economies always experience some unemployment
B. is the process of matching workers with appropriate jobs
C. would not be a problem if all workers and all jobs were the same
,D. all of the above are correct - answer>>A. is one reason the economies always experience some
unemployment
Who is included in the labor force by the Bureau of Labor statistics
A. Azibo, a homemaker not looking for other work
B. Kwamie, a full-time student not looking for work
C. Greoy, who does not have a job, but is looking for one
D. None of the above - answer>>C. Greoy, who does not have a job, but is looking for one
If the price of a DVD player is three times the price of a CD player, then a DVD player contributes
A. more than three times as much to GDP as does the CD player
B. less than three times as much to GDP as does the CD player
C. exactly three times as much to GDP as does the CD player
D. to GDP but a CD player does not contribute to GDP - answer>>
If the reverse ratio is 4 percent, then the money multiplier is
A. 24
B. 25
C. 26
D. 4 - answer>>B. 25
People who by newly issued stock in a corporation such as Crate and Barrel provide
A. debt finance and so become part owners of Crate and Barrel
B. debt finance and so become creditors of Crate and Barrel
C. equity finance and so become part owners of Crate and Barrel
D. equity finance and so become creditors of Crate and Barrels - answer>>C. equity finance and so
become part owners of Crate and Barrel
, If the consumer price index was 100 in the base year and 017 the following year, then the inflation rate
was,
A. 1.07 percent
B. 7 percent
C. 10.7 percent
D. 107 percent - answer>>B. 7 percent
The price index was 320 in one year and 360 in the next year. What was the inflation rate?
A. 9 percent
B. 11.1 percent
C. 12.5 percent
D. 40 percent - answer>>C. 12.5 percent
Which of the following is not a widely acknowledged problem with using the CPI as a measure of the
cost of living?
A. substitution bias
B. introduction of new goods
C. unmeasured quality change
D. unmeasured price change - answer>>D. unmeasured price change
Two alternative measures of the overall level of price are
A. the inflation rate and the consumer price index
B. the inflation rate and the GDP deflator
C. the GDP deflator and the consume price index
D. the cost of living index and the nominal GDP - answer>>C. the GDP deflator and the consume price
index
The nominal interest rate tells you
A. how fast the number of dollars in you bank account rises over time
B. how fast the purchasing power of your bank account rises over time
VERSION 2026-2027 QUESTIONS AND ANSWERS
The theory of efficiency wages explains why
A. setting wages at the equilibrium level may increase unemployment
B. it may be in the best interest of firms to offer wages that are above the equilibrium level
C. the most efficient way to pay workers is to pay them according to their skills
D. it is efficient for firms to set wages at the equilibrium level - answer>>C. the most efficient way to pay
workers is to pay them according to their skills
People who are unemployed because of job search are best classified as
A. cyclically unemployed
B. structurally unemployed
C. fictionally unemployed
D. discouraged workers - answer>>C. fictionally unemployed
People who are unemployed because the economy has shifted and no longer need that type of worker
are called
A. cyclically unemployed
B. structurally unemployed
C. frictionally unemployed
D. discouraged workers - answer>>B.
Job search
A. is one reason the economies always experience some unemployment
B. is the process of matching workers with appropriate jobs
C. would not be a problem if all workers and all jobs were the same
,D. all of the above are correct - answer>>A. is one reason the economies always experience some
unemployment
Who is included in the labor force by the Bureau of Labor statistics
A. Azibo, a homemaker not looking for other work
B. Kwamie, a full-time student not looking for work
C. Greoy, who does not have a job, but is looking for one
D. None of the above - answer>>C. Greoy, who does not have a job, but is looking for one
If the price of a DVD player is three times the price of a CD player, then a DVD player contributes
A. more than three times as much to GDP as does the CD player
B. less than three times as much to GDP as does the CD player
C. exactly three times as much to GDP as does the CD player
D. to GDP but a CD player does not contribute to GDP - answer>>
If the reverse ratio is 4 percent, then the money multiplier is
A. 24
B. 25
C. 26
D. 4 - answer>>B. 25
People who by newly issued stock in a corporation such as Crate and Barrel provide
A. debt finance and so become part owners of Crate and Barrel
B. debt finance and so become creditors of Crate and Barrel
C. equity finance and so become part owners of Crate and Barrel
D. equity finance and so become creditors of Crate and Barrels - answer>>C. equity finance and so
become part owners of Crate and Barrel
, If the consumer price index was 100 in the base year and 017 the following year, then the inflation rate
was,
A. 1.07 percent
B. 7 percent
C. 10.7 percent
D. 107 percent - answer>>B. 7 percent
The price index was 320 in one year and 360 in the next year. What was the inflation rate?
A. 9 percent
B. 11.1 percent
C. 12.5 percent
D. 40 percent - answer>>C. 12.5 percent
Which of the following is not a widely acknowledged problem with using the CPI as a measure of the
cost of living?
A. substitution bias
B. introduction of new goods
C. unmeasured quality change
D. unmeasured price change - answer>>D. unmeasured price change
Two alternative measures of the overall level of price are
A. the inflation rate and the consumer price index
B. the inflation rate and the GDP deflator
C. the GDP deflator and the consume price index
D. the cost of living index and the nominal GDP - answer>>C. the GDP deflator and the consume price
index
The nominal interest rate tells you
A. how fast the number of dollars in you bank account rises over time
B. how fast the purchasing power of your bank account rises over time
