ECN 1500 EXAM 1 CH 6 – 8 QUESTIoNS AND CorrECT
ANSWErS (vErIFIED) | lATEST UPDATE 2026/2027 | grADED
A+ | BrAND NEW | 100% gUArANTEED PASS
Which of the following is most important to Classical economics? - ANSWER-
Technology and capital
Which of the following is most important to Keynesian economics? - ANSWER-
Aggregate demand
Which would most likely suggest that the best policy response by government to the
Covid recession is to do nothing? - ANSWER-Hayek and Friedman
Which would most likely suggest that the best policy response to the Covid Recession is
to increase government spending? - ANSWER-Keynes
Which of the following is not associated with Keynesian economics? - ANSWER-A
policy prescription of Laissez Faire
Which of the following is associated with Classical economics? - ANSWER-Laissez
Faire
a focus on long-run economic growth
supply creates its own demand
A person with marketable skills who recently decided to start looking for a job after 10
years as a stay-at-home dad would most likely be classified as which type of
unemployment? - ANSWER-Frictional
The same person as above finds a job quickly but then a year later loses that job due to
a recession. Now this person would most likely be classified as which type of
unemployment? - ANSWER-Cyclical
, A machinist who loses her job due to imports and cannot find another job due to the
lack of jobs for machinists would most likely be classified as which type of
unemployment? - ANSWER-Structural
During the Covid recession, the unemployment rate reached 14.8% or 23.1 million
people in April 2020. This level of unemployment: - ANSWER-Includes some cyclical
unemployment
(Incorrect) Which of the following is a cause of structural unemployment? - ANSWER-
Recessions?
Which of the following is the cause of cyclical unemployment? - ANSWER-Recessions
Frictional unemployment is most closely associated with? - ANSWER-Job search
The total labor force is 100,000 out of a possible working age population of 300,000.
The total number of unemployed is 5,000. The labor force participation rate is -
ANSWER-33 percent
The total labor force is 100,000 out of a possible working age population of 300,000.
The total number of unemployed is 5,000. What is the unemployment rate? - ANSWER-
5.0 percent
Potential output: - ANSWER-depends on the size of the labor force
depends on technology
Per capita output would be certain to increase if: - ANSWER-real output increases and
population decreases
The business cycle consists of several stages or phases. Which is the accurate
sequence? - ANSWER-Recession, trough, upturn, peak
ANSWErS (vErIFIED) | lATEST UPDATE 2026/2027 | grADED
A+ | BrAND NEW | 100% gUArANTEED PASS
Which of the following is most important to Classical economics? - ANSWER-
Technology and capital
Which of the following is most important to Keynesian economics? - ANSWER-
Aggregate demand
Which would most likely suggest that the best policy response by government to the
Covid recession is to do nothing? - ANSWER-Hayek and Friedman
Which would most likely suggest that the best policy response to the Covid Recession is
to increase government spending? - ANSWER-Keynes
Which of the following is not associated with Keynesian economics? - ANSWER-A
policy prescription of Laissez Faire
Which of the following is associated with Classical economics? - ANSWER-Laissez
Faire
a focus on long-run economic growth
supply creates its own demand
A person with marketable skills who recently decided to start looking for a job after 10
years as a stay-at-home dad would most likely be classified as which type of
unemployment? - ANSWER-Frictional
The same person as above finds a job quickly but then a year later loses that job due to
a recession. Now this person would most likely be classified as which type of
unemployment? - ANSWER-Cyclical
, A machinist who loses her job due to imports and cannot find another job due to the
lack of jobs for machinists would most likely be classified as which type of
unemployment? - ANSWER-Structural
During the Covid recession, the unemployment rate reached 14.8% or 23.1 million
people in April 2020. This level of unemployment: - ANSWER-Includes some cyclical
unemployment
(Incorrect) Which of the following is a cause of structural unemployment? - ANSWER-
Recessions?
Which of the following is the cause of cyclical unemployment? - ANSWER-Recessions
Frictional unemployment is most closely associated with? - ANSWER-Job search
The total labor force is 100,000 out of a possible working age population of 300,000.
The total number of unemployed is 5,000. The labor force participation rate is -
ANSWER-33 percent
The total labor force is 100,000 out of a possible working age population of 300,000.
The total number of unemployed is 5,000. What is the unemployment rate? - ANSWER-
5.0 percent
Potential output: - ANSWER-depends on the size of the labor force
depends on technology
Per capita output would be certain to increase if: - ANSWER-real output increases and
population decreases
The business cycle consists of several stages or phases. Which is the accurate
sequence? - ANSWER-Recession, trough, upturn, peak
