It is difficult for cyclically unemployed individuals to find jobs because:

It is difficult for cyclically unemployed individuals to find jobs because:
 a. they do not meet the qualifications required for the available jobs.
  b. the economy is in a recession.
  c. they quit their last job and employers view them with suspicion.
  d. they have not looked long enough to find a job.

QUESTION 2

The ratio of a change in consumption to a change in income is the:
 a. consumption function.
  b. propensity to consume.
  c. average propensity to consume.
  d. extra propensity to consume.
  e. marginal propensity to consume.

QUESTION 3

Classical economists believe that:
 a. velocity is not constant.
  b. changes in the money supply affect real GDP.
  c. the quantity of money explains prices.
  d. the money supply affects velocity.

QUESTION 4

Cyclical unemployment:
 a. causes unemployment statistics to be understated.
  b. causes unemployment statistics to be overstated.
  c. occurs because of recessions.
  d. occurs because of technological innovations in production.
  e. only occurs with a zero inflation rate.

QUESTION 5

The change in consumption divided by a change in income is called the:
 a. consumption function.
  b. marginal propensity to consume.
  c. marginal propensity to spend.
  d. spending function.
  e. changing propensity to consume.

QUESTION 6

Monetarists believe that:
 a. velocity is constant.
  b. velocity is highly predictable.
  c. there are three motives for demanding money.
  d. changes in the money supply cause changes in velocity.
  e. a change in the money supply can affect real GDP.

QUESTION 7

Unemployment caused by a recession is called:
 a. structural unemployment.
  b. frictional unemployment.
  c. involuntary unemployment.
  d. cyclical unemployment

QUESTION 8

The marginal propensity to consume is:
 a. the change in income divided by the change in consumption.
  b. consumption spending divided by income.
  c. income divided by consumption spending.
  d. the change in consumption divided by the change in income.
  e. the change in consumption divided by income.

QUESTION 9

The quantity theory of money assumes that the velocity of money:
 a. is constant.
  b. will rise if the money supply rises and fall if the money supply falls.
  c. will rise if the money supply rises, but it will not change if the money supply falls.
  d. will fall if the money supply rises, and it will rise if the money supply falls.
  e. will fall if the money supply rises, but it will not change if the money supply falls.