Which of the following groups would not tend to lose from unexpected inflation?
a. Retirees on fixed pensions.
b. Creditors.
c. Those whose incomes are tied to long-term contracts.
d. Those whose wages have cost of living adjustment clauses in their contracts.
Question 2Fred lost his factory job, replaced by welding robots. He has now given up looking for work. Fred is:
a. Not unemployed.
b. Frictionally unemployed.
c. Structurally unemployed.
d. Cyclically unemployed.
Question 3Fred lost his factory job, replaced by welding robots. He is now going to technical school to learn computer repair because he cannot find a similar job to the one he lost. Fred is:
a. Frictionally unemployed.
b. Structurally unemployed.
c. Cyclically unemployed.
d. Not unemployed.
Question 4Fred has lost his factory job, replaced by welding robots, and soon plans to go to technical school to learn computer repair because he cannot find a similar job to the one he lost. The type of unemployment facing Fred is:
a. frictional.
b. structural.
c. cyclical.
d. natural.
Question 5The GDP deflator but not the CPI takes into account.
a. The prices of imports that consumers buy
b. Investment goods bought by businesses
c. Goods bought by the government
d. Both b. and c.
Question 6The CPI but not the GDP deflator takes into account.
a. The prices of imports that consumers buy
b. Investment goods bought by businesses
c. Goods bought by the government
d. None of the above
Question 7The GDP deflator represents a somewhat ____ measure of prices that the CPI and the GDP deflator tends to be ____ volatile than the CPI.
a. broader; more
b. broader; less
c. narrower; more
d. narrower; less
Question 8Which of the following is true?
a. At the natural rate of unemployment, the economy is considered to be at full employment.
b. At full employment, the economy is producing at its potential output.
c. If unemployment is greater than its natural rate, the economy is producing at less than its potential output.
d. All of the above are true.
Question 9Which of the following is true?
a. At below the natural rate of unemployment, the economy is considered to be beyond full employment.
b. At below full employment, the economy is producing more than potential output.
c. At below full employment, unemployment would be below its natural rate.
d. All of the above are true.
Question 10Which of the following is true?
a. At below the natural rate of unemployment, the economy is considered to be beyond full employment.
b. At above full employment, the economy is producing more than potential output.
c. At above full employment, unemployment would be below its natural rate.
d. All of the above are true.
Question 11Which of the following is true?
a. At the natural rate of unemployment, the economy is considered to be at full employment.
b. At full employment, the economy is producing at its potential output.
c. If unemployment is greater than its natural rate, the economy is producing at less than its potential output.
d. All of the above are true.
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