The labor force consists of all adults in the United States.

Question 1 options:

a)

True

b)

False

Question 2(1 point)

The natural rate of unemployment:

Question 2 options:

a)

occurs when the unemployment rate is zero and everyone who is willing to work has a job.

b)

fluctuates with the business cycle.

c)

is associated with the economy's maximum sustainable output rate.

d)

All of the answers are correct.

Question 3(1 point)

Excessive government spending and printing new money are signs that the economy is in danger of hyperinflation.

Question 3 options:

a)

True

b)

False

Question 4(1 point)

The key to being counted as unemployed by the Bureau of Labor Statistics is to be:

Question 4 options:

a)

out of a job.

b)

actively seeking work.

c)

passively seeking work.

d)

available for work.

Question 5(1 point)

Which of the following statements describe(s) the unemployment rate?

I. The unemployment rate includes those people who do not have a job and have ended their job search.

II. The unemployment rate counts as employed those people who may be only working part-time.

III. The unemployment rate is the percentage of the entire U.S. population that does not have a job but is searching for one.

Question 5 options:

a)

III only

b)

I and II only

c)

I only

d)

II only

Question 6(1 point)

_____ is an overall decline in prices throughout the economy.

Question 6 options:

a)

The price level

b)

Disinflation

c)

Hyperinflation

d)

Deflation

Question 7(1 point)

Suppose the market basket of goods costs $10,000 in 2009, the base period, and that same basket of goods now costs $11,200. What has been the percentage change in the cost of goods between the base period and the current period?

Question 7 options:

a)

+20%

b)

-20%

c)

-10.7%

d)

+11.2%

Question 8(1 point)

Zach has been laid off from his job as an aircraft worker . He has been actively looking for a job but has had no luck for the past six weeks. According to the Bureau of Labor Statistics, Zach is:

Question 8 options:

a)

a discouraged worker.

b)

unemployed.

c)

employed.

d)

not in the labor force.

Question 9(1 point)

In the first quarter of 2010, nominal GDP was $14,592.3 billion and the GDP deflator was 110.2. Real GDP for the first quarter of 2010, then, was equal to:

Question 9 options:

a)

$13,133.1 billion.

b)

$13,424.9 billion.

c)

$13,103.9 billion.

d)

$13,241.7 billion.

Question 10(1 point)

If inflation is unanticipated, then income may be redistributed from creditors to debtors.

Question 10 options:

a)

False

b)

True