Chapter 9 Solutions
Macroeconomics, 5e (Hubbard)
EC 212 – Chapter Nine Homework Assignment_SOLUTIONS
Chapter 9 Unemployment and Inflation
1) Due to slowing growth in China and other developing countries, Caterpillar ________ the number of persons it employed in 2013 and this ________ the total number of persons unemployed in the economy.
A) decreased; increased
B) decreased; decreased
C) increased; decreased
D) increased; increased
Answer: A
Diff: 1 Page Ref: 629/263
Topic: The Unemployment Rate
Learning Outcome: Macro-14: Identify different types and measures of unemployment and discuss its causes
AACSB: Analytic thinking
Special Feature: Chapter Opener: Caterpillar Announces Plans to Lay Off Workers
2) The economy has gone into a recession. You have majored in computer science and, because of the recession, have difficulty in finding a job. Should you go back to school and get a second major?
A) Yes, the recession will ensure that you will never find a job as a programmer.
B) Yes, the recession will lower income in my field permanently.
C) No, the recession will most likely be short-lived and I can get a job after it is over.
D) No, the recession will have no impact on my ability to get a job or my future income.
Answer: C
Diff: 2 Page Ref: 629/263
Topic: How Long Are People Typically Unemployed?
Learning Outcome: Macro-14: Identify different types and measures of unemployment and discuss its causes
AACSB: Analytic thinking
Special Feature: Economics in Your Life: Should You Change Your Career Plans if You Graduate During a Recession?
3) The unemployment rate is an important economic statistic that can tell us about the health of the economy. If the unemployment rate turns out to be high or higher than anticipated, we would expect
A) it is more likely that an incumbent president will be re-elected.
B) that stock prices are more likely to fall.
C) that jobs are less difficult to find.
D) that investors will be more optimistic about the economy.
Answer:
EC 212 – Chapter Nine Homework Assignment_SOLUTIONS
Chapter 9 Unemployment and Inflation
1) Due to slowing growth in China and other developing countries, Caterpillar ________ the number of persons it employed in 2013 and this ________ the total number of persons unemployed in the economy.
A) decreased; increased
B) decreased; decreased
C) increased; decreased
D) increased; increased
Answer: A
Diff: 1 Page Ref: 629/263
Topic: The Unemployment Rate
Learning Outcome: Macro-14: Identify different types and measures of unemployment and discuss its causes
AACSB: Analytic thinking
Special Feature: Chapter Opener: Caterpillar Announces Plans to Lay Off Workers
2) The economy has gone into a recession. You have majored in computer science and, because of the recession, have difficulty in finding a job. Should you go back to school and get a second major?
A) Yes, the recession will ensure that you will never find a job as a programmer.
B) Yes, the recession will lower income in my field permanently.
C) No, the recession will most likely be short-lived and I can get a job after it is over.
D) No, the recession will have no impact on my ability to get a job or my future income.
Answer: C
Diff: 2 Page Ref: 629/263
Topic: How Long Are People Typically Unemployed?
Learning Outcome: Macro-14: Identify different types and measures of unemployment and discuss its causes
AACSB: Analytic thinking
Special Feature: Economics in Your Life: Should You Change Your Career Plans if You Graduate During a Recession?
3) The unemployment rate is an important economic statistic that can tell us about the health of the economy. If the unemployment rate turns out to be high or higher than anticipated, we would expect
A) it is more likely that an incumbent president will be re-elected.
B) that stock prices are more likely to fall.
C) that jobs are less difficult to find.
D) that investors will be more optimistic about the economy.
Answer: