Which of these people could officially be counted as unemployed?
A. a garage attendant who got fired from his old job two months ago but will start a new job in two weeks
B. a busboy who works only four hours a day, five days a week, but would prefer to work full-time as a waiter
C. an accountant who quit her job when she had a baby two months ago
D. a woman who joined the babysitters' union several months ago and averages about five customers a week at her $10/hour rate
E. none of the above
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Which of the following statements is TRUE for the United States?
A. the unemployment rate consistently tends to be slightly higher among males than among females
B. the unemployment rate of teenagers tends to be much higher and more variable than that of people 20 years and older
C. during the 1981/1982 recession, the unemployment rate among teenagers was nearly the same as the unemployment rate among workers over 20
D. the highest unemployment rate in the post World War II period occurred in the 1974/75 recession
E. the unemployment rate among minorities consistently remained above 10 percent over the last 5 decades
The Beveridge curve shows a relationship between
A. the frequency and the duration of unemployment
B. the level of output and the unemployment rate
C. job vacancies and the unemployment rate
D. job vacancies and the labor force participation rate
E. the unemployment rate and alcohol consumption
In an AD-AS model with an upward-sloping AS-curve, the most likely effects of fiscal expansion would be
A. an increase in prices and interest rates, but a decrease in real money balances
B. an increase in output, prices, and real money balances
C. an increase in consumption and a decrease in investment with no change in output
D. a decrease in unemployment but an increase in interest rates and real money balances
E. a decrease in consumption, but an increase in net exports and investment
Restrictive monetary policy will eventually affect the upward-sloping AS-curve since
A. higher interest rates will increase the cost of production
B. higher interest rates will reduce the capital stock which will, in turn, reduce potential GDP
C. the resulting unemployment will cause downward pressure on nominal wages, so the cost of production will decrease
D. real wages will decline while nominal wags remain constant
E. firms will start laying off workers in anticipation of a decline in aggregate demand
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