age 1 of 63
ECON 2020 EXAM 2 PREP 2025/2026 COMPLETE
QUESTIONS WITH CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS <BRAND NEW VERSION>
Which statement is correct? .......Answer.........The production of
nondurable consumer goods is more stable than the production
of durable consumer goods over the business cycle
The phases of a business cycle from points A to D are,
respectively: .......Answer.........Peak, recession, trough, expansion
Some economists prefer to use the term business fluctuations
rather than business cycles to describe the historical growth
record in the United States because: .......Answer.........Cycles
imply regularity while fluctuations do not
,age 2 of 63
In which industry or sector of the economy is output least likely to
be affected by the business cycle? .......Answer.........Agricultural
Commodities
A nation has a population of 260 million people. Of these, 60
million are retired, in the military, in institutions, or under 16
years old. There are 188 million who are employed and 12
million who are unemployed. What is the unemployment rate?
.......Answer.........6 percent
The total adult population of an economy is 175 million, the
number of employed is 122 million, and the number of
unemployed is 17 million. The percent of adults who are not in
the labor force is: .......Answer.........20.6 percent
,age 3 of 63
A worker who loses a job at a call center because business firms
switch the call center to another country is an example of:
.......Answer.........Structural Unemployment
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 learn how to repair microcomputers. The type
of unemployment Kevin is face with is: .......Answer.........Structural
If the unemployment rate for the United States economy rises
from 7 to 11 percent during a year, we can conclude that:
.......Answer.........Actual GDP is less than potential GDP
If the negative GDP gap were equal to 4% of the potential
GDP, Okun's law suggests that the actual unemployment rate
would exceed the natural rate of unemployment by:
.......Answer.........Two percentage points
, age 4 of 63
If the natural rate of unemployment is 4.5 percent and the
actual rate is 6.5 percent, then Okun's law indicates that the
GDP gap is: .......Answer.........4 percent
If the Consumer Price Index was 125 in one year and 120 in the
following year, then the rate of inflation is approximately:
.......Answer.........-4.0 percent
The economy has an annual inflation rate of 3.5%. It will take
approximately how many years for the price level to double?
.......Answer.........20 years
In Year 1, the price level was 120 and the average nominal
income was $30,000. In Year 2, the price level was 125 and the
average nominal level of income was $32,000. What happened
to real income from Year 1 to Year 2? .......Answer.........It rose by
$600
ECON 2020 EXAM 2 PREP 2025/2026 COMPLETE
QUESTIONS WITH CORRECT DETAILED ANSWERS ||
100% GUARANTEED PASS <BRAND NEW VERSION>
Which statement is correct? .......Answer.........The production of
nondurable consumer goods is more stable than the production
of durable consumer goods over the business cycle
The phases of a business cycle from points A to D are,
respectively: .......Answer.........Peak, recession, trough, expansion
Some economists prefer to use the term business fluctuations
rather than business cycles to describe the historical growth
record in the United States because: .......Answer.........Cycles
imply regularity while fluctuations do not
,age 2 of 63
In which industry or sector of the economy is output least likely to
be affected by the business cycle? .......Answer.........Agricultural
Commodities
A nation has a population of 260 million people. Of these, 60
million are retired, in the military, in institutions, or under 16
years old. There are 188 million who are employed and 12
million who are unemployed. What is the unemployment rate?
.......Answer.........6 percent
The total adult population of an economy is 175 million, the
number of employed is 122 million, and the number of
unemployed is 17 million. The percent of adults who are not in
the labor force is: .......Answer.........20.6 percent
,age 3 of 63
A worker who loses a job at a call center because business firms
switch the call center to another country is an example of:
.......Answer.........Structural Unemployment
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 learn how to repair microcomputers. The type
of unemployment Kevin is face with is: .......Answer.........Structural
If the unemployment rate for the United States economy rises
from 7 to 11 percent during a year, we can conclude that:
.......Answer.........Actual GDP is less than potential GDP
If the negative GDP gap were equal to 4% of the potential
GDP, Okun's law suggests that the actual unemployment rate
would exceed the natural rate of unemployment by:
.......Answer.........Two percentage points
, age 4 of 63
If the natural rate of unemployment is 4.5 percent and the
actual rate is 6.5 percent, then Okun's law indicates that the
GDP gap is: .......Answer.........4 percent
If the Consumer Price Index was 125 in one year and 120 in the
following year, then the rate of inflation is approximately:
.......Answer.........-4.0 percent
The economy has an annual inflation rate of 3.5%. It will take
approximately how many years for the price level to double?
.......Answer.........20 years
In Year 1, the price level was 120 and the average nominal
income was $30,000. In Year 2, the price level was 125 and the
average nominal level of income was $32,000. What happened
to real income from Year 1 to Year 2? .......Answer.........It rose by
$600
