Macro Economics Test 2 Questions
and Answers
The portion of unemployment that is due to changes in the structure of the economy
that result in a significant loss of jobs in certain industries is _____ unemployed -
Answer-Structural
A bank moves its headquarters from Pennsylvania to Arkansas. The CFO of the bank is
given the opportunity to move to Arkansas. He turns down this opportunity because of
family obligations. While he is searching for a new job he would be classified as... -
Answer-Structurally Unemployed
A structurally unemployed person is... - Answer-An individual who cannot find a job
because his or her job skills have become obsolete
The sum of frictional unemployment and structural employment is... - Answer-The
Natural Rate of Unemployment
When an individual quits his/her job and decides to stay home for a while, the labor-
force participation rate... - Answer-Decreases
Discouraged workers are... - Answer-Not considered as part of the labor force
During recessions, the number of discouraged workers _____ and this _____ the
unemployment rate - Answer-Increases; Reduces
An auto worker in Ohio who loses her job because the company relocated the plant to
another country represents an example of... - Answer-Structural Unemployment
The increase in unemployment that occurs during recessions and depressions is
called... - Answer-Cyclical Unemployment
When GDP is measured in "current prices" it is known as - Answer-Nominal GDP
When GDP is measured using "adjustments for price changes" it is known as - Answer-
Real GDP
When differences between nominal GDP and real GDP result due to price changes and
nothing else is compared, an index called the _________ is created - Answer-GDP
deflator
and Answers
The portion of unemployment that is due to changes in the structure of the economy
that result in a significant loss of jobs in certain industries is _____ unemployed -
Answer-Structural
A bank moves its headquarters from Pennsylvania to Arkansas. The CFO of the bank is
given the opportunity to move to Arkansas. He turns down this opportunity because of
family obligations. While he is searching for a new job he would be classified as... -
Answer-Structurally Unemployed
A structurally unemployed person is... - Answer-An individual who cannot find a job
because his or her job skills have become obsolete
The sum of frictional unemployment and structural employment is... - Answer-The
Natural Rate of Unemployment
When an individual quits his/her job and decides to stay home for a while, the labor-
force participation rate... - Answer-Decreases
Discouraged workers are... - Answer-Not considered as part of the labor force
During recessions, the number of discouraged workers _____ and this _____ the
unemployment rate - Answer-Increases; Reduces
An auto worker in Ohio who loses her job because the company relocated the plant to
another country represents an example of... - Answer-Structural Unemployment
The increase in unemployment that occurs during recessions and depressions is
called... - Answer-Cyclical Unemployment
When GDP is measured in "current prices" it is known as - Answer-Nominal GDP
When GDP is measured using "adjustments for price changes" it is known as - Answer-
Real GDP
When differences between nominal GDP and real GDP result due to price changes and
nothing else is compared, an index called the _________ is created - Answer-GDP
deflator
