If there are 110 million people working 5 million discouraged workers 10 million receiving unemplo Show more If there are 110 million people working 5 million discouraged workers 10 million receiving unemployment insurance benefits and 15 million officially unemployed how many people are in the labor force? 110 million 115 million 125 million 130 million 140 million In constructing the consumer price index for the current year The average price of a bundle of goods purchased in a base year is divided by the prices of the same bundle that existed during the current year. The average price of a bundle of goods purchased in a base year is divided base year is divided into the price that existed in the current year. The total cost of a bundle of goods purchased in a base year divided by the cost of the same bundle that existed during the current year. The total cost of a bundle of goods purchased in a base year is divided into the cost of the same bundle that existed during the current year. When individuals are out of work because they do not have skills necessary to perform available jobs we call this Structural unemployment The natural rate of unemployment Cyclical unemployment Frictional unemployment Full employment ( 5 to 6 percent unemployment) Because of discouraged workers the unemployment rate Tends to behave very erratically Overstate the unemployment problem Understate the unemployment problem None of the choices are correct For nearly every year since 1992 our rate of inflation was below 5 percent 4 percent 3 percent 2 percent 1 percent Which is the most accurate statement? Our biggest economic concern today is double digit inflation Our biggest economic concern today is double digit unemployment Our biggest economic concern today is stagflation Our misery index was under 10 in 1999 If the unemployment rate for whites was 5 % then the unemployment rate for blacks would be around 3% 5% 7% 10 % 15% American unemployment was lower that most European nations in the last decade because The U.S. experienced a booming economy throughout the 1990s while European economies were stagnant In Europe there is no longer much of a stigma attached with being unemployed Unemployment benefits are much generous in Europe than in the U.S. All of the choices are correct Official unemployment statistics Understate unemployment because individuals receiving unemployment compensation are counted as employed Understate unemployment because discouraged workers are not counted as unemployed Include cyclical and structural unemployment but not counted as unemployed Overstate unemployment because workers who are involuntarily working part time are counted as being employed Which of the following statements is true? The price shock theory of the business cycle is endogenous Across the board over investment particularly in the telecommunications industry prior to 2001 caused a recession in that year. When the index of Leading indicators turns downward a recession almost always follows The terrorist attacks on 9/11 caused the recession of 2001. The inventory cycle theory of the business cycle is exogenous If the crowding out effect is large then when government spending increases National income will not increase by much Investment will not increase by much The multiplier will be large Taxes will automatically increase too During times of inflation conservative economists would be most in favor of Spending cuts Spending increases Tax cuts Tax increases Which statement is false? Foreigners are holding an increasing percentage of the national debt. The national debt rises substantially during war time Over the next 50 years we will have to pay off most of the national debt None of the statements are false A list of automatic stabilizers in the United States economy would NOT include Income taxes Unemployment compensation Agricultural support payments Defense spending The top marginal rate of the federal personal income tax was lowered under the administration of Gerald Ford Jimmy Carter Ronald Reagan Richard Nixon Bill Clinton Which country listed here had the highest decifit as a percent of GDP in 2008? Japan The United States Italy Great Britain If we make our income tax system less progressive by reducing the tax rates on upper income earners it would Not affect the effects of the automatic stabilizers Increase the effect of the automatic stabilizers Decrease the effect of the automatic stabilizers Lengthen the time period in which the automatic stabilizers would be effective Which statement is true? The federal budget deficit reached a peak in 1992 and has been declining since then. The federal budget deficit is fiscal year 1997 was at a record high. Because we ran federal budget surpluses since 1998 the national debt is falling. The federal government ran budget surpluses from 1998 but returned to deficits since 2002. Which of the following is NOT an automatic stabilizer? Food Stamps Unemployment insurance benefits Public assistance A supply- side tax cut Government policy concerning its spending and taxation is called. The quantity theory of money Fiscal policy Business cycles Monetary policy Revenue sharing policy Mr. Krapotkin hopes to use the family savings to invest in the stock market after prices fall next week. This is an example of Speculative demand for holding money The precautionary motive for holding money The commodity demand for money The transaction demand for money Which statement is true? M1 is money but not M2 M2 is money but not M1 Both M1 and M2 are money Neither M1nor M2 is money The unintended consequences of the federal deregulation of the interest paid depositor in the savings and loans was Increasing the interest rates in the national money market Increasing the amount of the loss on existing loans Allowing management to make riskier loans Affecting the interest rates on existing long term loans The concept of the liquidity trap was formulated by John Maynard Keynes Milton Friedman Stephen Pizzo Aristotle Marshall Mc Luhan In a fractional reserve banking system Commercial banks are required to hold savings account in other banks as reserves against their deposits Commercial banks are required to hold a certain fraction of their deposits in reserves All deposits must be held in reserves Commercial banks hold no deposits in reserve Statement I As the level of income rises people tend to hold more money. Statements II: People tend to hold less money as credit availability increases. Statement I is true and statement II is false Statement II is true and statement I is false Both statements are true Both statements are false The economy of Atlantis produces just ten goods and services if it were a money economy there would be _____ prices if it were a barter economy there would be _____ prices Less than 10;less than 10 Less than 10; 10 10; 10 10; more than 10 Which of the following factors contributed to failure of savings and loan associations in the 1980s? The high levels of net worth by all savings and loans Declining real estate values Avoidance of risky loans by the savings and loans industry Low interest rates paid to attract deposits Which statement is false? Most savings and loan associates were locked into low-interest-rtae mortgage on the 1950s and 1960s To get a bank charter you need to demonstrate that your community needs a bank or an additional bank. Nearly all banks today are regulated by both the Federal Reserve and the FDIC The FDIC would rather pay off depositors than be forces to find another bank to take over an ailing institution Money is created when someone takes out a bank loan View comments (3) Answer Sophia Smith Sophia Smith Chegg expert answered this more than 1 day later Was this answer helpful? 1 0 2589 answers Show less
Which of the following is NOT an automatic stabilizer?
