Business Cycles MCQs

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A headline states: "Real GDP falls again as the economy slumps." This condition is most likely to produce what type of unemployment? Select one:






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Which measure of inflation would include consumer goods and capital goods? Select one:






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"Full employment" refers to the situation when there is: Select one:






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Inflation is a rise in: Select one:






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In calculating the unemployment rate, part-time workers are: Select one:






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What are the primary effects of cost-push inflation? Select one:






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In calculating the unemployment rate, "discouraged" workers who are not actively seeking employment are: Select one:






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Official unemployment rate statistics may: Select one:






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Kevin has lost his job in an automobile plant because of the use of robots for welding on the assembly line. Kevin plans to go to technical school to ...






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A mismatch between the geographic location of workers and the location of job openings would result in what type of unemployment? Select one:






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Which of the following measures the changes in the prices of a "market basket" of some 300 goods and services purchased by typical urban consumers? ...






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Most economists agree that the immediate cause of the majority of cyclical changes in the level of real output is unexpected changes in the: Select...






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Inflation that occurs when total spending is greater than the economy’s ability to produce output at the existing price level is: Select one:






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Unemployment rates for skilled workers compared to unemployment rates for unskilled workers are: Select one:






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In which industry or sector of the economy is output least likely to be affected by the business cycle? Select one:






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Which phase of the business cycle would be most closely associated with an economic contraction? Select one:






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Core inflation refers to the inflation picture after stripping away the: Select one:






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The rate of unemployment when the economy is at its potential output is called the: Select one:






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The amount by which actual GDP falls short of potential GDP is one measure of the: Select one:






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In what circumstances would lenders most benefit? Select one:






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Unanticipated inflation tends to penalize: Select one:






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Unemployment that is the result of deregulation, corporate downsizing, and the closure of military bases is best categorized as frictional unemploymen...




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A trough in the business cycle occurs when: Select one:






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When inflation occurs: Select one:






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Which of the following is the correct way to calculate the unemployment rate? Select one:






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The best example of a "frictionally unemployed" worker is one who: Select one:






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Deflation is when the inflation rate turns negative. Select one:




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Inflation caused by a rise in the prices of inputs is referred to as: Select one:






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Anyone who is not employed is classified as unemployed in the Bureau of Labor Statistics data on the labor force. Select one:




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Cost-push inflation tends to be characterized by all of the following, except: Select one:






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For a person to keep his real income steady at a certain level from one year to the next, his nominal income must: Select one:






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Okun’s law indicates that for: Select one:






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When oil and energy prices rise, the economy tends to experience: Select one:






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The distinction between variable cost and fixed cost is relevant only in