QUESTION 41
The consumer price index is intended to measure the cost of all goods purchased in the economy over time.
True
False
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QUESTION 42
When an economy has reached a zero unemployment rate, it is said to have reached full employment.
True
False
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QUESTION 43
The official unemployment rate is a useful but not altogether accurate measure of joblessness.
True
False
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QUESTION 44
The two types of reserves are federal reserves and required reserves.
True
False
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QUESTION 45
Automatic stabilizers, such as tax revenues and transfer payments, eliminate fluctuations in the business cycle.
True
False
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QUESTION 46
When the actual rate of unemployment is equal to the natural rate of unemployment, we conclude that there is no cyclical unemployment.
True
False
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QUESTION 47
Increased government regulation can cause the aggregate supply curve to shift to the left.
True
False
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QUESTION 48
The price index in the base year is normalized so that it equals 100.
True
False
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QUESTION 49
If the Federal Reserve wants to increase the money supply, it should raise the required reserve ratio.
True
False
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QUESTION 50
The aggregate supply curve in the long run is vertical because wages and other input prices respond completely to a change in price level.
True
False
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QUESTION 51
Public choice analysis helps us to understand why deficits seem inevitable, since we always pay the full costs of government programs today.
True
False
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QUESTION 52
Expansionary demand-side fiscal policies set up a tradeoff between increasing output at the expense of raising prices.
True
False
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QUESTION 53
Cathy works part-time as a bookkeeper but would like to have a full-time position. She has been actively searching for months but so far has not found a job. According to the Bureau of Labor Statistics, Cathy is unemployed.
True
False
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QUESTION 54
The real rate of interest is the nominal rate of interest times the inflation rate.
True
False
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QUESTION 55
The time required to comprehend that a recession has in fact begun is called the recognition lag.
True
False
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QUESTION 56
If an economy is in long-run equilibrium, it is also in short-run equilibrium.
True
False
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QUESTION 57
Policymakers can increase output by enacting policies that expand government spending, consumption, investment, or net exports or reduce taxes.
True
False
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QUESTION 58
When Disney builds a new amusement park in the United States, it is counted as part of GDP.
True
False
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QUESTION 59
The oil shock of 1973 led to demand-pull inflation.
True
False
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QUESTION 60
Casey is a 16-year-old high school student who has no marketable skills. He has been browsing the want-ads in the local newspaper for months but finally got so discouraged that he quit looking. According to the Bureau of Labor Statistics, Casey is unemployed.
True
False
