Question 1

A double-dip recession occurs when

Accepted Answer

A double-dip recession occurs when the economy falls back into a recession shortly after coming out of a recession. It is characterized by a period of growth, followed by another period of contraction before fully recovering.

Question 2

If a person is laid-off from a job and told that they will be brought back as soon as the economy picks up and demand for their product rises, then economists call this person

Accepted Answer

This person is experiencing cyclical unemployment, which occurs when there is a downturn in the economy and businesses have to lay off workers. They are not structurally unemployed, as their skills are still needed and there is demand for their product. They are not frictionally unemployed, as they have not voluntarily left their job in search of better opportunities.

Question 3

As women entered the force in the 1950s through the 1990s, the

Accepted Answer

As women entered the workforce in greater numbers from the 1950s through the 1990s, the labor force participation rate increased. This is because more individuals (in this case, women) were actively seeking employment or were employed, thus contributing to the overall labor force.

Question 4

Which of the following can make the unemployment rate rise?

Accepted Answer

The answer of Which of the following can make the...

Question 5

If the unemployment rate rises because the number of people not working but searching for work rises, economists would attribute this to the

Accepted Answer

The encouraged worker effect occurs when people enter or re-enter the labor force due to improved job prospects, increasing the number of individuals seeking employment. This can temporarily raise the unemployment rate as more people are counted as unemployed because they are actively looking for work.

Question 6

Economic contractions during the period from 1950 to 2007

Accepted Answer

Economic contractions from 1950 to 2007 were generally shorter in duration compared to those in earlier periods, reflecting improvements in economic management and policy responses.

Question 7

Since the end of World War II, the rate of growth during expansions

Accepted Answer

The rate of growth during expansions has been falling since the end of World War II. This is indicated by the fact that the average annual growth rate of GDP in the US during post-WWII expansions has been lower than the average rate of growth during pre-WWII expansions.

Question 8

As the baby boom starts to retire, you would expect to see the

Accepted Answer

As the baby boom generation starts to retire, a significant portion of the population will exit the workforce, leading to a decrease in the labor force participation rate. This is because the labor force participation rate measures the proportion of the working-age population that is either employed or actively looking for work, and retirees are not included in this measure.

Question 9

A depression is different from a recession in that

Accepted Answer

A depression is typically characterized by a severe and prolonged economic downturn, marked by high unemployment rates, reduced consumer spending, and a significant slowdown of business activity. In contrast, a recession is generally shorter and less severe than a depression, and it typically involves a significant decline in economic activity, such as a decline in Gross Domestic Product (GDP), but not to the extent of a depression.

Question 10

The highest post World War II unemployment rate occurred

Accepted Answer

The highest post World War II unemployment rate occurred in 1982, reaching a peak of 10.8%. This was due to a combination of factors, including a recession and high oil prices. The unemployment rate in 1974 reached 7.2%, in 2001 it reached 4.9%, and in 2009 it reached 9.6%. Therefore, option B is the best choice.

Question 11

Which of the following can make the unemployment rate fall?

Accepted Answer

The answer of Which of the following can make the...

Question 12

If Real GDP contracted by more than 10%, economists would label that a

Accepted Answer

If Real GDP contracted by more than 10%, economists would label that a Depression. This is because a contraction of this magnitude indicates a severe and prolonged economic downturn, with significant negative impacts on employment, income, and overall economic activity.

Question 13

The period from 1984-2007 has been labeled

Accepted Answer

The period from 1984-2007 has been labeled "the Great Moderation." This term refers to the relatively stable economic conditions during this time period, characterized by low inflation, low unemployment, and steady economic growth.

Question 14

The period of negative growth in Real GDP is called a

Accepted Answer

A recession is a period of at least two consecutive quarters of negative economic growth, meaning that Real GDP is declining. This is characterized by a slowdown in economic activity, increased unemployment, and reduced consumer spending. Therefore, A) recession is the correct choice. B) recovery and C) expansion are periods of positive economic growth.

Question 15

If a person is unemployed because their industry has moved to another country, economists refer to the person as

Accepted Answer

Structural unemployment occurs when changes in the economy lead to a mismatch between the skills workers have and the skills employers need. If a person has lost their job because their industry has moved to another country, it is highly likely that they are structurally unemployed, as their skills may not be in demand in their current location.

Question 16

The period of growth from a trough that brings Real GDP back to its previous peak is called a

Accepted Answer

A recovery is the period of economic growth that follows a recession, during which Real GDP increases and returns to its previous peak level. A trough is the lowest point in economic activity during a recession, and it marks the end of the recession and the beginning of the recovery. An expansion is a period of sustained economic growth that occurs after the recovery phase, during which Real GDP continues to increase beyond its previous peak level.

Question 17

If the unemployment rate falls because the number of people not working but searching for work falls, economists would attribute this to the

Accepted Answer

The discouraged worker effect occurs when individuals stop looking for work because they are discouraged by the lack of available positions, leading to a decrease in the unemployment rate not because more jobs are created, but because fewer people are counted as actively seeking employment.

Question 18

The period of growth from the level of the previous peak to a new peak in Real GDP is called a

Accepted Answer

The period of growth from the level of the previous peak to a new peak in Real GDP is called an expansion. This is when the economy is experiencing growth, low unemployment rates, and rising incomes. A recession is the opposite, where there is a decline in economic activity and negative growth. A recovery refers to the period of time after a recession where the economy begins to grow again, but has not yet reached its previous peak.

Question 19

The recession of 2007-2009 has been

Accepted Answer

The recession of 2007-2009 is widely considered to be one of the worst post-World War II recessions, characterized by a high unemployment rate, widespread mortgage defaults, and significant declines in economic output.

Question 20

Economic contractions during the period from 1950 to 2007

Accepted Answer

Economic contractions from 1950 to 2007 were generally less frequent compared to earlier periods, reflecting improvements in economic management and policy responses.

Quiz 6: Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

A double-dip recession occurs when

If a person is laid-off from a job and told that they will be brought back as soon as the economy picks up and demand for their product rises, then economists call this person

As women entered the force in the 1950s through the 1990s, the

Which of the following can make the unemployment rate rise?

If the unemployment rate rises because the number of people not working but searching for work rises, economists would attribute this to the

Economic contractions during the period from 1950 to 2007

Since the end of World War II, the rate of growth during expansions

As the baby boom starts to retire, you would expect to see the

A depression is different from a recession in that

The highest post World War II unemployment rate occurred

Which of the following can make the unemployment rate fall?

If Real GDP contracted by more than 10%, economists would label that a

The period from 1984-2007 has been labeled

The period of negative growth in Real GDP is called a

If a person is unemployed because their industry has moved to another country, economists refer to the person as

The period of growth from a trough that brings Real GDP back to its previous peak is called a

If the unemployment rate falls because the number of people not working but searching for work falls, economists would attribute this to the

The period of growth from the level of the previous peak to a new peak in Real GDP is called a

The recession of 2007-2009 has been

Economic contractions during the period from 1950 to 2007