Q9. A depression is

A.

another word for a bull market.

B.

a sustained economic upturn.

C.

the period of time following a peak in the business cycle.

D.

a severe recession.

Q10. If the real wagerises,

A.

firms will hire additional labor.

B.

the marginal benefit of the worker increases.

C.

firms will hire less labor.

D.

the marginal cost of labor falls.

Q 11. If a large number of workers are classified as being out of the labor force when they are really looking forwork, this will lead to an official unemployment rate that is

A.

overstated.

B.

understated.

C.

neither overstated or understated.

D.

unbiased.

Q13. The typical relationship between inflation and unemployment is

A.

unemployment changes do not directly lead to changes ininflation, but inflation changes may cause changes in unemployment.

B.

as unemploymentfalls, inflation falls.

C.

as unemploymentfalls, inflation increases.

D.

as unemploymentfalls, nothing happens to inflation.

Q14. In the GDPaccounts, investment includes the purchase of newly issued shares of stock.

True

False

Q15. Suppose real GDP was 100 in year 1 and 105 in year 2. The growth rate of real GDP is

A.

0.5 percent.

B.

1.5 percent.

C.

2.5 percent.

D.

5 percent.

Q16. Which of the following is NOT a macroeconomicstatement?

A.

Gross domestic product in Peru increased 4 percent from 2015 to 2016.

B.

The U.S. inflation rate was two percent in 2016.

C.

Aggregate worker productivity decreased by three percent in 2016.

D.

The price of cell phones decreased by 18 percent last year.

Q17. If the government liberalizes immigrationpolicies, the demand for labor will________, the real wage will________, and the quantity of labor hired will________.

A.

remain thesame; decrease; increase

B.

remain thesame; decrease; decrease

C.

remain thesame; increase; decrease

D.

increase; decrease; remain the same

Q18. There is an inverse relationship between the amount of labor supplied and real wages.

True

False

Q19. According to thisApplication, the economic effects of increases in temperature seem to

A.

be nonexistent in most countries.

B.

be confined to richer countries.

C.

be equal across all countries.

D.

be confined to poorer countries.

Q20. Suppose bad weather in Florida unexpectedly results in a much smaller citrus crop than had been projected. This would cause the________ labor to pick citrus fruit in Florida to________.

A.

demandfor; decrease

B.

supplyof; increase

C.

supplyof; decrease

D.

demandfor; increase