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Transcript
Click
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onthe
thebutton
buttontotogo
gototothe
theQuestion
problem
© 2013 Pearson
Potential GDP and
the Natural
Unemployment Rate
24
CLICKER QUESTIONS
© 2013 Pearson
Click
Clickon
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theQuestion
problem
Checkpoint 24.1
Checkpoint 24.2
Question 1
Question 6
Question 2
Question 7
Question 3
Question 8
Question 4
Question 9
Question 5
Question 10
© 2013 Pearson
CHECKPOINT 24.1
Question 1
____ adopts the view that aggregate fluctuations are a
natural consequence of an expanding economy.
A.
B.
C.
D.
E.
Classical macroeconomics
Keynesian economics
Monetarist macroeconomics
The Lucas wedge
The Okun gap
© 2013 Pearson
CHECKPOINT 24.1
Question 2
Potential GDP ______.
A. is produced when resources are fully employment
B. can never be exceeded
C. can never be attained
D. is another name for real GDP
E. is the maximum GDP that the economy can produce
© 2013 Pearson
CHECKPOINT 24.1
Question 3
The production function shows that when the economy
________, production equals ______ .
A.
B.
C.
D.
E.
is at full employment; nominal GDP
has no unemployment; real GDP
has no unemployment; potential GDP
is at full employment; potential GDP
has unemployment; nominal GDP
© 2013 Pearson
CHECKPOINT 24.1
Question 4
The economy in the figure
will produce potential GDP
when labor works ____
billions of hours a year.
A.
B.
C.
D.
E.
150
200
250
300
more than 150
© 2013 Pearson
CHECKPOINT 24.1
Question 5
With fixed quantities of capital, land, and entrepreneurship
and given technology, the amount of real GDP produced
increases when ____ increases.
A.
B.
C.
D.
E.
the quantity of labor supplied
the inflation rate
the quantity of labor employed
the price level
the real wage rate
© 2013 Pearson
CHECKPOINT 24.2
Question 6
The two sources of unemployment at full employment are
______.
A.
B.
C.
D.
E.
seasonal jobs and technological change
foreign competition and financial bankruptcies
job search and job rationing
decreases in labor productivity and retirement benefits
demographic change and decreases in the demand for
labor
© 2013 Pearson
CHECKPOINT 24.2
Question 7
Union wages and efficiency wages _____ the real wage rate
____ the equilibrium real wage rate and _____.
A. raise; above; create a shortage of labor
B. lower; below; create a shortage of labor
C. raise; above; lower the natural unemployment rate
D. have no impact on; do not influence the amount of
unemployment
E. raise; above; increase the natural unemployment rate
© 2013 Pearson
CHECKPOINT 24.2
Question 8
The more generous the unemployment benefits, the _____.
A.
B.
C.
D.
higher is the opportunity cost of job search
lower is the opportunity cost of job search
shorter is the time spent searching for a suitable job
shorter is the time spent searching for a suitable job and
the higher is the opportunity cost of job search
E. lower is the natural unemployment rate
© 2013 Pearson
CHECKPOINT 24.2
Question 9
In the figure, if job rationing
occurs, the real wage rate
might be ____ per hour
with ____ billion hours
employed.
A. $20; 80
B. $30; 60
C. $20; 50
D. $40; 40
E. $40; 70
© 2013 Pearson
CHECKPOINT 24.2
Question 10
If job rationing is introduced,
the unemployment created
will be greater if the _______.
A. real wage rate falls to
$10 per hour
B. real wage rate rises to
$40 per hour
C. employment rises to
200 billion hours
D. employment falls to
100 billion hours
© 2013 Pearson