UNT ECON 1100 EXAM 2 FINAL SCRIPT
PAPER 2026 VERIFIED SOLUTIONS FULL
CONTENT
◉ An economy is at full employment when ______.
Answer: the unemployment rate equals the natural unemployment
rate
◉ The natural unemployment rate _______.
Answer: is the unemployment rate when there is no cyclical
unemployment
◉ In the United States, the CPI basket consists of items that ______ .
______ has the greatest weight in the CPI basket.
Answer: an average urban household buys;
Housing
◉ The table gives information reported by the Bureau of Labor
Statistics for February, 2014.
What is the labor force participation rate?
E:145 U:11 N:91
,Answer: 63.2 (employ +unemployment/total)
◉ Choose the statement that is incorrect.
Answer: An unexpected inflation or deflation has no effect on the
economy.
◉ The main sources of bias in the CPI are ______.
Answer: new goods bias, quality change bias, commodity
substitution bias, and outlet substitution bias
◉ The bias in the CPI is a problem because ______ .
Answer: it distorts wage agreements linked to the CPI
◉ The CPI tells us ______.
Answer: the price level in a given period expressed as a percentage
of the price level in the base period, which is by definition equal to
100
◉ The table gives information reported by the Bureau of Labor
Statistics for September, 2011.
What is the employment-to-population ratio?
LF:154 U:14 N:86
, Answer: 58.3 (labor force-unemployment/labor force + not in labor
force)
◉ Choose the statement that is incorrect.
Answer: US and Britian were the only countries that suffered during
the great depression.
◉ The higher than normal unemployment at a business cycle trough
and the lower than normal unemployment at a business cycle peak
is ____________ unemployment
Answer: cyclical
◉ Choose the statement that is incorrect.
Answer: The unemployment rate includes all underutilized labor.
◉ The CPI in 2013 is 240 and the CPI in 2014 is 259.2
Answer: 8% (259.2/240 = 1.08)
◉ The inflation rate in 2014 ______.
Answer: might be higher, lower, or the same as in 2013
◉ When the unemployment rate ______ the natural unemployment
rate, real GDP ______ potential GDP.
PAPER 2026 VERIFIED SOLUTIONS FULL
CONTENT
◉ An economy is at full employment when ______.
Answer: the unemployment rate equals the natural unemployment
rate
◉ The natural unemployment rate _______.
Answer: is the unemployment rate when there is no cyclical
unemployment
◉ In the United States, the CPI basket consists of items that ______ .
______ has the greatest weight in the CPI basket.
Answer: an average urban household buys;
Housing
◉ The table gives information reported by the Bureau of Labor
Statistics for February, 2014.
What is the labor force participation rate?
E:145 U:11 N:91
,Answer: 63.2 (employ +unemployment/total)
◉ Choose the statement that is incorrect.
Answer: An unexpected inflation or deflation has no effect on the
economy.
◉ The main sources of bias in the CPI are ______.
Answer: new goods bias, quality change bias, commodity
substitution bias, and outlet substitution bias
◉ The bias in the CPI is a problem because ______ .
Answer: it distorts wage agreements linked to the CPI
◉ The CPI tells us ______.
Answer: the price level in a given period expressed as a percentage
of the price level in the base period, which is by definition equal to
100
◉ The table gives information reported by the Bureau of Labor
Statistics for September, 2011.
What is the employment-to-population ratio?
LF:154 U:14 N:86
, Answer: 58.3 (labor force-unemployment/labor force + not in labor
force)
◉ Choose the statement that is incorrect.
Answer: US and Britian were the only countries that suffered during
the great depression.
◉ The higher than normal unemployment at a business cycle trough
and the lower than normal unemployment at a business cycle peak
is ____________ unemployment
Answer: cyclical
◉ Choose the statement that is incorrect.
Answer: The unemployment rate includes all underutilized labor.
◉ The CPI in 2013 is 240 and the CPI in 2014 is 259.2
Answer: 8% (259.2/240 = 1.08)
◉ The inflation rate in 2014 ______.
Answer: might be higher, lower, or the same as in 2013
◉ When the unemployment rate ______ the natural unemployment
rate, real GDP ______ potential GDP.
