Chapter 6 Macroeconomics Victoria college
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A peek in the business cycle
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Is a temporary maximum point
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A nation has a population of 260 million people of these 60 million are retired in the military it institutions or under 16 years old there are 188 million who are employed and 12 million who are unemployed what is the unemployment rate
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6%
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Assuming the total population is 200 million labor force is 100,000,090 2 million workers are employed the unemployment rate is
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8%
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In calculating the unemployment rate discouraged workers who are not actively seeking employment are
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Excluded
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The best example of a frictionally unemployed worker is one who
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Is in the process of voluntarily switching jobs
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A worker who loses a job at a call center because business firm switch the call center to another country is an example of
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Structural unemployment
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If the real GDP gap is negative then
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Actual GDP is less than potential GDP
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Inflation is a rise in
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A rise general level of prices over a time
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If the consumer price index was 166.6 in one year in 172.2 in the next year and the rate of inflation from one year to the next year was
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3.4%
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Inflation caused by an increase in aggravated spending is referred to as
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Demand push inflation
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Statement that is often used to describe demand pull inflation is
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Too much money chasing too few goods
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Inflation caused by a rise in per unit production cost is referred to as
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Cost push inflation
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Assume that there is a fixed rate of interest on contracts for borrowers and lenders is unanticipated inflation occurs in the colonies then
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Lenders are hurt but borrowers benefit
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Suppose there are 5 million unemployed workers seeking jobs after a period of time 1 million of them become discouraged over their job prospects and sees to look for work as a result of this the official unemployment rate would
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Decline
