Question : 71) Potential GDP the level of output produced when the : 1240891

71) Potential GDP is the level of output produced when the unemployment rate is

A) equal to the natural unemployment rate.

B) greater than the natural unemployment rate.

C) less than the natural unemployment rate.

D) zero.

E) made up of only cyclical unemployment.

72) Potential GDP is reached when

A) unemployment is zero.

B) there is no cyclical unemployment.

C) unemployment is above full employment.

D) unemployment is below full employment.

E) the natural unemployment rate equals zero.

73) Which of the following is true?

A) Real GDP fluctuates around potential GDP.

B) Potential GDP fluctuates around real GDP.

C) Nominal GDP fluctuates around real GDP.

D) Real GDP fluctuates around nominal GDP.

E) When real GDP equals potential GDP, both equal nominal GDP.

74) During a recession,

A) real GDP is equal to potential GDP.

B) real GDP is less than potential GDP.

C) real GDP is greater than potential GDP.

D) the relationship between real GDP and potential GDP no longer exists.

E) the actual unemployment rate is less than the natural unemployment rate.

75) When the unemployment rate is greater than the natural unemployment rate, real GDP is

A) greater than potential GDP.

B) less than potential GDP.

C) unrelated to potential GDP.

D) equal to potential GDP.

E) greater than full employment GDP.

76) As the unemployment rate increases,

A) potential GDP decreases.

B) real GDP decreases.

C) both real GDP and potential GDP decrease.

D) potential GDP increases.

E) full employment GDP decreases.

77) When the unemployment rate is ________ the natural unemployment rate, real GDP is ________ potential GDP.

A) below; above

B) above; the same as

C) the same as; below

D) the same as; above

E) above; above

78) Tommy graduates from college and starts to look for a job. Tommy is

A) frictionally unemployed.

B) structurally unemployed.

C) cyclically unemployed.

D) unnecessarily unemployed.

E) employed because he is looking for work.

79) Which of the following people is frictionally unemployed?

A) Cara, an executive who lost her job because her company could not compete with foreign competition and whose skills are not wanted by other companies

B) Tran, a building construction supervisor who was fired because of a downturn in the building industry that is the result of a general downturn in the economy

C) Eugene, a pharmaceutical drug salesman who was laid off when his company lost a large contract with an HMO

D) Amanda, a sales associate at J.C. Penney who quit her job to attend school full time

E) Samantha, who worked part-time in J.C. Penney to help with the Christmas rush but was laid off in January

80) If an entire industry relocates to a foreign country, the relocation leads to a higher rate of ________ unemployment.

A) frictional

B) structural

C) structural and frictional

D) cyclical

E) structural and cyclical