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CSET Business - Macroeconomics: Unemployment & Inflation Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. In the short run, there tends to be a tradeoff between _____ and _____.

Question 2 2. In December 2016, 155,000 of Mainfield's adult residents were employed while 27,000 were unemployed. What was Mainfield's unemployment rate in December?

Question 3 3. What relationship does the Phillips Curve illustrate?

Question 4 4. Cost-push inflation occurs when _____.

Question 5 5. During the 1960's, what was the relationship between inflation and employment?

Page 2

Question 6 6. Increases in aggregate supply that cause a leftward shift in the Phillips Curve will lead to which of the following?

Question 7 7. Which of the following would NOT lead to a shift of the short-run Phillips curve?

Question 8 8. Unexpectedly high inflation _____ savers and _____ borrowers.

Question 9 9. What is the result of cost-push inflation?

Question 10 10. Which of the following individuals would be counted as unemployed?

Page 3

Question 11 11. A retired woman lives entirely on Social Security income, while a farmer borrows money to buy a new tractor. How would inflation affect them?

Question 12 12. Why might a national wheat plague cause cost-push inflation?

Question 13 13. What is the result of a negative supply shock?

Question 14 14. What will an increase in aggregate supply do economically?

Question 15 15. Which of the following is NOT an example of seasonal unemployment?

Page 4

Question 16 16. What occurs when the rate of unemployment goes up at the same time as inflation?

Question 17 17. Mary Beth ran a local newspaper business. She found that fewer people were purchasing the local paper since they were able to conveniently access the news online via their computers and smart phones. Mary Beth's business was no longer making a profit, and she was forced to close its doors. This led to people losing their jobs, such as journalists, printers, and newspaper delivery boys. This is an example of _____.

Question 18 18. Which of the following workers is MOST likely to be classified as structurally unemployed?

Question 19 19. How do economists illustrate stagflation?

Question 20 20. Which of the following would be negatively affected from unanticipated inflation?

Page 5

Question 21 21. Which of the following groups includes the sum of employed and unemployed workers?

Question 22 22. When aggregate demand increases, unemployment tends to decrease, and inflation tends to increase. How can this be illustrated?

Question 23 23. Which of the following groups of people will benefit from unexpected inflation?

Question 24 24. If discouraged workers were actually counted in the unemployment rate:

Question 25 25. When technology improves across the economy, how and why will the short-run Phillips Curve move?

Page 6

Question 26 26. What does the Phillips Curve describe?

Question 27 27. The Bureau of Labor Statistics categorizes an individual as unemployed if they are:

Question 28 28. Why does frictional unemployment occur in the workforce?

Question 29 29. What happens when actual inflation is higher than expected inflation?

Question 30 30. If the unemployment rate rose from 5% to 7%, but more people were employed, what LIKELY occurred?

CSET Business - Macroeconomics: Unemployment & Inflation Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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