Test Answers on Chapter 14 study guide

question

True or false. The where’s downturn of the business cycle in the United States occurred during the Cold War.
answer

False
question

True or false. The two phases of the business cycle are peaks and troughs.
answer

False.
question

True or false. The unemployment rate is calculated by dividing the number of unemployed persons by the total number of persons in the civilian labor force
answer

True
question

True or false. The unemployment rate does not take into account the number of part-time workers who want to have full-time jobs
answer

True
question

True or false. Full employment is reached when the unemployment rate drops below 7%
answer

False
question

True or false. The unemployment rate is determined by the Bureau of the Census.
answer

True
question

The business cycle since World War II has been characterized by what
answer

Extend an expansions alternating with brief recessions
question

Unemployment that is directly related to swings in the business cycle is
answer

Cyclical unemployment
question

According to the cost push theory, inflation is caused by
answer

Workers
question

This marked the beginning of the great depression in 1929
answer

Stock market crash
question

Changes in technology and changes in consumer taste can cause
answer

Structural unemployment
question

According to the demand pool theory, inflation is caused by
answer

Consumers
question

The Lorenz curve is used to demonstrate
answer

The degree of income inequality
question

What type of unemployment does the cartoon depict
answer

Technological
question

In the graph what does the straight diagonal line represent
answer

Equality of income
question

Systematic ups and downs of the real GDP
answer

Business cycle
question

Location where companies are free to certain local state and federal tax laws
answer

Enterprise zone
question

Percent of people out of work divided by the total number of people in the civilian labor force
answer

Unemployment rate
question

Unemployment caused with machines replaced people
answer

Technological unemployment
question

State of the economy characterized by high unemployment a cute shortages and excess production capacity
answer

Depression
question

Decrease in the general price level
answer

Deflation
question

Caused by fundamental change in the operations of the economy
answer

Structural unemployment
question

Periods during which the real GDP declined for two quarters in a row or for six consecutive months
answer

Recession
question

Economic and social programs that provide regular assistance to the needy
answer

Welfare
question

Unemployment resulting from changes in the weather or change in the demand for certain products
answer

Seasonal unemployment
question

Inflation in the range of 500% a year and above
answer

Hyper inflation
question

Monthly statistical series the anticipates change to the real GDP
answer

Index of leading indicators

Get instant access to
all materials

Become a Member