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Last updated 9:51 PM on 3/13/25
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52 Terms
1
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What is the number of people in the work-eligible population according to the survey?
75
2
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What is the number of people in the labor force according to the survey?
80
3
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What is the unemployment rate according to the survey?
6.7 percent
4
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What is the labor force participation rate according to the survey?
83.3 percent
5
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The value of the bond at maturity is known as the __________ value.
Par
6
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Government policies result in __________ unemployment.
Higher structural
7
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Tuition has increased more __________ than inflation.
rapidly
8
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Every dollar borrowed __________ a dollar leaving the circular flow.
Represents
9
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The greater the default risk, the __________ of the bond.
Lower the price
10
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The rate of inflation from 2001–2002 was __________ percent.
6.67
11
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The inflation-adjusted price of Dr. Wells in 1970 would be __________.
$2.36
12
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The notion of compound interest means that it will accumulate interest on the principal and __________ interest.
any accumulated
13
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You feel richer after a pay raise despite it not keeping up with inflation; this is best described as __________.
Money illusion
14
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A rise in the national unemployment rate which causes people's incomes to decrease would be a decrease in the supply of loanable funds due to __________.
economic downturns
15
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A firm would prefer to sell bonds instead of stocks if it does not want to give up __________ control of the business.
ownership
16
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Treasury securities are bonds sold by the U.S. government to pay for __________.
the national debt
17
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When actual unemployment is less than the natural rate, the economy is in an __________.
expansion
18
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According to the price confusion problem, if the price of a product increases, the price increase is due to __________.
inflation
19
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Milton Friedman said that inflation is always caused by an increase in the __________ relative to goods and services.
money supply
20
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For inflation to occur with no change in real GDP or the money supply, money velocity must __________.
increase
21
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If individuals shift to reading electronically, the resulting unemployment is classified as __________ unemployment.
structural
22
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The unemployment rate measures the percentage of the __________ that is unemployed.
labor force
23
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If the dollar price of a bond is $4,000 and its face value is $4,250, the interest rate is __________ percent.
6.25
24
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Future price uncertainty arises when you must pay wages and supply costs in the future during __________.
inflation
25
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The chained CPI is a better measure of prices than the traditional CPI when inflation is __________.
relatively low
26
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Cyclical unemployment is caused by __________ downturns.
economic
27
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At interest rate A, there is a __________ of loanable funds.
shortage
28
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A home mortgage loan is used by individuals to pay for __________.
a home
29
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The risk that a borrower will not pay back a bond is called __________ risk.
Default
30
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Deflation is when the overall level of prices of goods __________.
falls
31
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A profit-maximizing firm will borrow money if the interest rate is less than the expected rate of __________ on investment.
return
32
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The Phillips curve indicates a tradeoff between __________ and unemployment.
inflation
33
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Money market mutual funds are investments in low-risk, __________ assets.
liquid
34
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A decrease in the U.S. dollar value typically occurs with an increase in __________.
inflation
35
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A government budget surplus leads to an increase in the __________ of loanable funds.
supply
36
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An increase in demand for funds in the loanable funds market causes __________ in the interest rate.
an increase
37
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If you expect inflation, the value of money will __________.
decrease
38
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Frictional unemployment occurs when workers leave one job in search of __________.
another
39
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An increase in the supply of loanable funds can be caused by a decrease in government __________.
debt
40
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An increase in job seekers leads to an increase in __________ unemployment.
frictional
41
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Each bond sold by the U.S. government to pay for the national debt is known as __________.
Treasury securities
42
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A CPI value in 2006 calculated at $600 in 2002 is __________.
116.7
43
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Structural unemployment is caused by __________ in the industrial makeup of an economy.
changes
44
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M in the equation M × V = P × Y stands for the __________ of money.
quantity
45
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If the unemployment rate is 5.8 percent and there are 15 million unemployed, the labor force is approximately __________ million.
259
46
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The velocity of money measures how often a unit of money __________ hands.
changes
47
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The rate of inflation from 2002 to 2003 was approximately __________ percent.
−4.25
48
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Discouraged workers are not working but are willing to work and have looked for a job in the past __________ months.
12
49
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During a recession, many pilots and flight attendants are classified as __________ unemployed.
cyclically
50
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The government can help reduce structural unemployment by providing __________ programs.
job-training
51
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Deflation occurred from 1996 through 1999 and between __________ and 2004.
2003
52
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The CPI measures changes in the average level of prices in a __________ of goods and services.
basket
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