The classical economists believed there was no role for government to play in restoring full ...

The classical economists believed there was no role for government to play in restoring full employment.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

Stephen Moreno reported to the government interviewer that he worked 40 hours last week as a stocker at a Target department store. He is:
 a. a member of the civilian labor force who is employed.
  b. a member of the civilian labor force who is unemployed.
  c. a member of the civilian labor force who is underemployed.
  d. a discouraged worker who is not a member of the labor force.
  e. not a member of the labor force.

QUESTION 3

The aggregate supply curve is vertical at the level of real GDP that corresponds to the natural rate of unemployment.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

When the interest rate falls,
 a. the opportunity cost of holding money rises.
  b. people shift out of holding interest-yielding bonds into holding money.
  c. the quantity of money people will hold decreases.
  d. investment spending decreases.
  e. real GDP will decrease.

QUESTION 5

Find the size of the civilian labor force from the following data: frictional unemployment = 150, structural unemployment = 200, cyclical unemployment = 225, discouraged workers = 25, underemployed workers = 75, fully employed workers = 850, total population = 2,000.
 a. 1,425
  b. 1,450
  c. 1,500
  d. 1,525
  e. 2,000

QUESTION 6

The aggregate supply curve shows the relationship between the price level and the level of real GDP produced by the nation's economy.
 a. True
  b. False
  Indicate whether the statement is true or false