ECON 110 Read & Interact Schiller & Gephardt Chapter 10 solutions complete answers

ECON 110 Read & Interact Schiller & Gephardt Chapter 10 solutions complete answers 

 

The Full Employment and Balanced Growth Act of 1978 established a goal for price stability to be an inflation rate less than:

 

(Old/New) products are often slow to be included in the consumer price index (CPI) and when omitted tend to cause the CPI to be overstated.

 

If price levels are rising rapidly and erratically, you may not commit to long-term commitments because of

 

If due to inflation the real value of your savings makes you worse off than you were before, then you are experiencing the _________ effect.

 

Income expressed in current-year dollars is known as   income.

 

The price of one good in comparison with the price of other goods is a(n)   price.

 

We cannot have zero unemployment because the following types of unemployment are both inevitable and desirable:

 

_______ price is the price of one good in comparison with the price of other goods.

 

An unemployment rate between 4% and 6% is known as   employment.

 

Which of these types of unemployment may still exist when the economy is at full employment? (Select all that apply.)

 

Match the worker to the type of unemployment.

 

The economy is in a downturn, so many workers around the country are unemployed. This workers are experiencing:

 

 (one word) is the inability of labor-force participants to find jobs.

 

José quit his current job and has taken a new job at a higher pay. The new job starts in two weeks. During the two weeks between jobs, José is _____ unemployed.

 

Snow skiing instructors who find their jobs ending at the end of the winter are said to experience   unemployment.

 

If 150,000 people are employed and the labor force is 160,000, then the unemployment rate is:

 

The portion of the labor force that is not working but is willing and able to work and actively seeking work is defined as ______ and the portion of the labor force that is working part-time or full-time is defined as ______.

 

The intensity and duration of the decline in GDP during the Great Depression were ______ more recent U.S. recessions.

 

Based on the figure, U.S. real GDP growth:

 

_______ computes GDP using current prices.

 

The term _______ refers to the alternative combinations of goods and services that could be produced in a given time period with all available resources and technology.

 

Because production possibilities always tend to expand:

 

A country's   possibilities means the alternative combinations of goods and services that could be produced in a given time period with all available resources and technology.

 

A basic purpose of macroeconomic theory is to explain the business cycle—to identify the forces that cause the overall economy to _______ and _______.

 

Macroeconomics is the study of _______ economic behavior, of the economy as a whole.

 

A basic purpose of macroeconomic theory is to explain the       cycle.

 

Business cycles are:

 

The three basic measures of macro performance are

 

The alternative combinations of goods and services that could be produced in a given time period with all available resources and technology is known as

 

_______ is the study of aggregate economic behavior, of the economy as a whole.

 

A basic purpose of macroeconomic theory is to explain the business cycle -- to identify the forces that cause the overall economy to _______ and _______.

 

Economists use the _______ curve to identify an economy's potential output.

 

A business cycle is:

 

When production possibilities increase, output will:

 

The basic measures of macro performance are

 

Economic performance (as measured by real GDP) is at its maximum during a _______ and at a minimum during a _______.

 

The alternative combinations of goods and services that could be produced in a given time period with all available resources and technology is known as       possibilities.

 

The dollar value of all the output produced in a year is       domestic product.

 

When computing GDP using current prices, it is referred to as

 

An economy's potential output is reflected in its _______ curve.

 

When GDP is measured using "adjustments for price changes", it is known as

 

Since production possibilities always tend to expand:

 

______ GDP uses current prices while ______ GDP uses prices adjusted for inflation.

 

The business cycle high point that precedes a recession is called a(n)      .

 

_______ is calculated as the percentage change in real GDP per year.

 

The dollar value of all the output produced in a year is

 

Based on the table U.S. real GDP growth:

 

Nominal GDP measures the value of all goods and services:

 

The historical growth path of the U.S. economy can be characterized as:

 

Real gross domestic product (GDP) is a measure of GDP that:

 

The intensity and duration of the decline in GDP during the Great Depression was ______ more recent U. S. recessions.

 

      GDP uses current prices while       GDP uses prices adjusted for inflation. (Insert one word in each blank.)

 

Recessions are periods when:

 

Real GDP growth is calculated as:

 

Since 1946, the recession that had the highest unemployment started in

 

Based on the figure showing real GDP growth, which of the following statements best summarizes the real GDP economic growth in the U.S. between 1929 and 2019?

 

The labor force is comprised of people who are:

 

True or false: The growth path of the U.S. economy can be characterized as a smooth, rising trend.

 

The _______ consists of everyone over the age of 16 who is working plus all those who are not working but are actively seeking employment.

 

True or false: The Great Depression impacted many countries around the world.

 

Drag and drop the numbers against the corresponding categories:

 

The phase of the business cycle that describes a decline in total output for at least two consecutive quarters is called a(n)       (Enter one word).

 

The unemployment rate is the proportion of _______ that is unemployed.

 

Since 1946, the recession that had the greatest decline in output started in

 

The unemployment rate is the number of unemployed people divided by

 

The labor force is:

 

      (one word) is the inability of labor force participants to find jobs.

 

The _______ consists of everyone over the age of 16 who is employed and unemployed.

 

If there are 11,000 people employed, 2,500 people unemployed, and 3,000 people who are not in the labor force, what is the unemployment rate?

 

Given the data for 2017 as shown in the figure, match the following:

 

The _______ is the proportion of the labor force that is unemployed.

 

Unemployment due to seasonal changes in employment or labor supply is called       unemployment.

 

The unemployment rate is calculated by dividing the number of ______ by the ______.

 

Farm workers who find their jobs ending at the end of a crop year are are said to experience       unemployment.

 

We can describe unemployment as:

 

If 150,000 people are employed and the labor force is 160,000 the unemployment rate is:

 

A new college grad is looking for their first job and is currently unemployed. This grad is ________ unemployed.

 

Unemployment due to seasonal changes in employment or labor supply is called _______ unemployment.

 

Frictional unemployment is inevitable and is often viewed as desirable because many workers:

 

Snow skiing instructors who find their jobs ending at the end of the winter are said to experience       unemployment.

 

Brief periods of unemployment experienced by people moving between jobs or into the labor market is called       unemployment.

 

Those who are not working but actively seeking work are defined as      .

 

The unemployment that is due to the mismatch between the skills needed for emerging jobs and those possessed by the workforce is called:

 

Jose quit his current job and has taken a new job at a higher pay. The new job starts in two weeks. During the two weeks between jobs, Jose is _____ unemployed.

 

An auto worker in Michigan who loses her job because the company relocated the plant to another country is an example of:

 

The increase in unemployment that occurs during recessions and depressions is called:

 

Because of       unemployment people who spend more time looking for work may find better jobs.

 

The economy is in a downturn so many workers around the country are unemployed. This is an example of:

 

Workers who are unemployed because they are "between jobs" are part of:

 

The type of unemployment that consists of workers searching or waiting for jobs is called ______. The unemployment that consists of workers who lack marketable skills or must relocate is called _______. The type of unemployment that is caused by a decline in total spending is called ______.

 

Unemployment caused by a mismatch between the skills (or location) of job seekers and the requirements (or location) of available jobs is called       (Enter one word) unemployment.

 

We cannot have zero unemployment since the following types of unemployment are both inevitable and desiredable:

 

A glass blower who is unemployed because her skills are no longer marketable due to automation is an example of ______.

 

Economists agree that the optimal unemployment (full employment) is

 

Unemployment attributable to a lack of job vacancies, that is due to downturns in the economy, is called:

 

      is an increase in the average level of prices of goods and services.

 

A worker who is unemployed because of an economy-wide insufficient demand for goods and services is experiencing:

 

A decrease in the average level of prices of goods and services is known as

 

Match the worker to their type of unemployment.

 

Full employment is something less than 100 percent employment of the labor force because:

 

The price of one good in comparison with the price of other goods is a       price.

 

A unemployment rate between 4-6% is known as       employment.

 

      prices may be changing when we have stable prices, inflation, or deflation.

 

An increase in the average level of prices of goods and services is known as

 

If the price of tuition does in fact rise faster than all other prices, which of the following is true?

 

Deflation occurs when there is:

 

One of the biggest consequences of unanticipated inflation is:

 

Income that has been adjusted for changes in prices over time is called:

 

_______ price is the price of one good in comparison with the price of other goods

 

Income expressed in current year dollars is known as       income.

 

If relative prices are changing, we can definitely state that:

 

      is not representative of the price changes in any particular good or service.

 

Relative price changes are important:

 

One of the consequences of inflation is:

 

If you consume goods and services whose prices are rising slower than inflation, compared to the average person, you are:

 

When income is adjusted for inflation, it is referred to as       (real/nominal) income.

 

Inflation redistributes:

 

       income is the money you receive in a particular time period measured in current dollars.

 

If prices are rising, incomes are usually      , too.

 

One of the reasons that inflation redistributes real income is:

 

If due to inflation the real value of your savings makes you worse off than you were before, this is an example of the _________ effect

 

If you consume goods and services whose prices are rising faster than inflation, compared to the average person, you are:

 

The three redistributive effects of inflation include:

 

What are the basic "lessons learned" about the redistributive effects of price changes?

 

Inflation:

 

On average people are _______ when prices rise because average incomes increase at the same time.

 

If price levels are rising rapidly and erratically, you may not commit to long term commitments because of

 

A measure of changes in the average price of consumer goods and services is called the:

 

Which three of the following are the redistributive mechanics of inflation?

 

The annual percentage rate of increase in the average price level is called:

 

True or false: Inflation always makes people worse off.

 

The inflation rate can be measured by the       increase in the CPI

 

As average price levels change, economic decisions become more:

 

The absence of significant changes in the average price level, officially defined as a rate of inflation of less than 3 percent, is the United States goal of

 

The _________ price index is usually expressed in terms of what a representative market basket of goods costs consumers.

 

Economists believe there may be a trade-off between

 

In general, the consumer price index (CPI) only monitors the price of goods over time. It usually does not adjust for changes in      .

 

The annual rate of increase in the average price level is called:

 

       products are often slow to be included in the consumer price index (CPI) and when omitted tend to cause the CPI to be overstated.

 

If a market basket cost $100 last year and $110 this year, we can conclude that the inflation rate is:

 

True or false: Economists continue to develop policy tools for taming the business cycle and can now eliminate the possibility of a recession.

 

The Full Employment and Balanced Growth Act of 1978 established a goal for price stability to be an inflation rate less than      %.

 

A restraint in government spending to maintain price stability may result in      .

 

Since the quality of products tends to increase over time, increases in the price of a product may tend to       the true rate of inflation.

 

The omission of new products makes the consumer price index (CPI):

 

Is there another recession coming for the U.S. economy?

 

 

The number of people unemployed divided by the labor force is the:

 

Jose quit his current job and has taken a new job for higher pay. The new job starts in two weeks. During the two weeks between jobs, John is ________ unemployed.

 

Changes in unemployment that occur as the economy expands and contracts is

 

Inflation is an increase in the ________ level of prices.

 

      occurs when there is a decreasing average price level.

 

Real income is:

 

Real income:

 

Nominal income is:

 

The ________ price index measures the changes in the average price of consumer goods and services.

 

The lowest point on the business cycle that precedes an expansion is called a ___________

 

_______________ GDP, or inflation-adjusted GDP, reflects changes in the price level.

 

The labor force is the sum of the ______ and ______.

 

The formula used to determine the unemployment rate is:

 

Since 1946, the recession that was the longest started in

 

Which of these types of unemployment may still exist when the economy is at full employment (select all that apply)?

 

Inflation refers to: