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| 1 | |
The short-run aggregate supply curve is: |
| | A) | upward-sloping. |
| | B) | vertical. |
| | C) | horizontal. |
| | D) | fixed at the origin. |
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| 2 | |
The long-run aggregate supply curve is: |
| | A) | upward-sloping. |
| | B) | vertical. |
| | C) | horizontal. |
| | D) | fixed at the origin. |
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| 3 | |
The output that would be produced at the nonaccelerating inflation rate of unemployment (NAIRU) is called: |
| | A) | aggregate supply. |
| | B) | potential GDP. |
| | C) | nonaccelerating GDP. |
| | D) | none of the above. |
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| 4 | |
Economists that believe that changes in aggregate demand have a significant and lasting effect on output are: |
| | A) | classical economists. |
| | B) | neoclassical economists. |
| | C) | in the Keynesian school of economics. |
| | D) | none of the above. |
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| 5 | |
People who perform any paid work, as well as those who have jobs but are absent from work because of illness, strikes, or vacations are called: |
| | A) | not in the labor force. |
| | B) | unemployed. |
| | C) | employed. |
| | D) | the labor force. |
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| 6 | |
People who are not employed but are actively looking for work or waiting to return to work are called: |
| | A) | not in the labor force. |
| | B) | unemployed. |
| | C) | employed. |
| | D) | the labor force. |
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| 7 | |
People who are keeping house, retired, too ill to work, or simply not looking for work are: |
| | A) | not in the labor force. |
| | B) | unemployed. |
| | C) | employed. |
| | D) | the labor force. |
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| 8 | |
All those who are employed or unemployed are called: |
| | A) | not in the labor force. |
| | B) | unemployed. |
| | C) | employed. |
| | D) | the labor force. |
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| 9 | |
The number of unemployed divided by the total labor force is called: |
| | A) | the employment rate. |
| | B) | the unemployment rate. |
| | C) | the labor force. |
| | D) | none of the above. |
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| 10 | |
Okun's Law states that: |
| | A) | for every 3 percent that GDP falls relative to potential GDP, the unemployment rate rises about 1 percentage point. |
| | B) | for every 1 percent that GDP falls relative to potential GDP, the unemployment rate rises about 1 percentage point. |
| | C) | for every 2 percent that GDP rises relative to potential GDP, the unemployment rate rises about 1 percentage point. |
| | D) | for every 2 percent that GDP falls relative to potential GDP, the unemployment rate rises about 1 percentage point. |
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