MACRO EXAM QUESTIONS AND ANSWERS
If the number of people unemployed and the number of people in the labor force grow at
the same rate, then the_____. - Answers - unemployment rate will stay the same
Economic growth will occur and the price level will be constant when the increase in
aggregate demand - Answers - exactly equals the increase in long-run aggregate
supply.
Suppose the economy is experiencing a recessionary gap. In the long run, the money
wage rate_____, unemployment_____, and the price level_____. - Answers -
falls,falls,falls
Suppose the economy was initially in a long-run equilibrium. Then the world economy
expands so that foreign incomes rise. U.S. aggregate demand_____and eventually the
money wage rate_____. - Answers - increases, rises
In a short-run macroeconomic equilibrium, real GDP exceeds potential GDP, so the -
Answers - short-run aggregate supply curve will shift leftward as the money wage rate
rises.
Last year in the country of Union, the price level increased and real GDP increased.
Such an outcome might have occurred because short-run aggregate supply_____and
aggregate demand_____. - Answers - did not change, increased
Which of the following will decrease the unemployment rate? Hint: 5/100 is bigger than
4/99. - Answers - Discouraged workers leave the labor force.
Which labor market statistic tends rise during recessions and fall during expansions? -
Answers - the unemployment rate
Suppose the number of people employed is 25 million and the number of people in the
labor force is 75 million. What is the employment-to-population ratio? - Answers - There
is not enough information given to answer the question.
Frictional unemployment is the result of - Answers - normal labor market turnover.
When a worker quits a job to look for a better job, - Answers - frictional unemployment
increases.
Who of the following is unemployed? - Answers - Glenn, a student who just graduated
from college last week and is currently looking for a job
If the number of people unemployed and the number of people in the labor force grow at
the same rate, then the_____. - Answers - unemployment rate will stay the same
Economic growth will occur and the price level will be constant when the increase in
aggregate demand - Answers - exactly equals the increase in long-run aggregate
supply.
Suppose the economy is experiencing a recessionary gap. In the long run, the money
wage rate_____, unemployment_____, and the price level_____. - Answers -
falls,falls,falls
Suppose the economy was initially in a long-run equilibrium. Then the world economy
expands so that foreign incomes rise. U.S. aggregate demand_____and eventually the
money wage rate_____. - Answers - increases, rises
In a short-run macroeconomic equilibrium, real GDP exceeds potential GDP, so the -
Answers - short-run aggregate supply curve will shift leftward as the money wage rate
rises.
Last year in the country of Union, the price level increased and real GDP increased.
Such an outcome might have occurred because short-run aggregate supply_____and
aggregate demand_____. - Answers - did not change, increased
Which of the following will decrease the unemployment rate? Hint: 5/100 is bigger than
4/99. - Answers - Discouraged workers leave the labor force.
Which labor market statistic tends rise during recessions and fall during expansions? -
Answers - the unemployment rate
Suppose the number of people employed is 25 million and the number of people in the
labor force is 75 million. What is the employment-to-population ratio? - Answers - There
is not enough information given to answer the question.
Frictional unemployment is the result of - Answers - normal labor market turnover.
When a worker quits a job to look for a better job, - Answers - frictional unemployment
increases.
Who of the following is unemployed? - Answers - Glenn, a student who just graduated
from college last week and is currently looking for a job
