21.Whichofthefollowingtypicallyrisesduringarecession?
a.investment.
b.unemployment.
c.taxrevenues.
d.newhomeconstruction.
22.RealGDP
a.movesintheoppositedirectionasunemployment.
b.increasesasproductionfalls.
c.fallswhenhouseholdssaveasmallerfractionoftheirincome.
d.Alloftheabovearecorrect.
23.Asrecessionsbegin,income
a.andunemploymentbothrise.
b.risesandunemploymentfalls.
c.fallsandunemploymentrises.
d.andunemploymentbothfall.
24.BelowarepairsofGDPgrowthratesandunemploymentrates.EconomistswouldbeshockedtoseemostofthesepairsintheU.S.WhichpairofGDPgrowthratesandunemploymentratesisrealistic?
a.10percent,1percent
b.2percent,12percent
c.-1percent,8percent
d.-2percent,2percent
25.BelowarepairsofGDPgrowthratesandunemploymentrates.EconomistswouldbeshockedtoseemostofthesepairsintheU.S.WhichpairofGDPgrowthratesandunemploymentratesisrealistic?
a.5percent,1percent
b.3percent,5percent
c.-1percent,3percent
d.-2percent,4percent
26.Inthelasthalfof1999,theU.S.unemploymentratewasabout4percent.Historicalexperiencesuggeststhatthisis
a.abovethenaturalrate,sorealGDPgrowthwaslikelylow.
b.abovethenaturalrate,sorealGDPgrowthwaslikelyhigh.
c.belowthenaturalrate,sorealGDPgrowthwaslikelylow.
d.belowthenaturalrate,sorealGDPgrowthwaslikelyhigh.
27.Duringthelasthalfof2012,theU.S.unemploymentratewasjustunder8percent.Historicalexperiencesuggeststhat thisis
a.abovethenaturalrate,sorealGDPgrowthwaslikelylow.
b.abovethenaturalrate,sorealGDPgrowthwaslikelyhigh.
c.belowthenaturalrate,sorealGDPgrowthwaslikelylow.
d.belowthenaturalrate,sorealGDPgrowthwaslikelyhigh.
28.Duringrecessionsemploymenttypically
a.fallssubstantially.Astherecessionends,employmentrisesrapidly.
b.risessubstantially.Astherecessionends,employmentdeclinesgradually.
c.fallssubstantially.Astherecessionends,employmentrisesgradually.
d.risessubstantially.Astherecessionends,employmentdeclinesrapidly.
29.Historically,asrecessionshaveendedtheunemploymentratedeclined
a.graduallytonearzero.
b.rapidlytonearzero.
c.graduallytoarateofabout5%-6%.
d.rapidlytoarateofabout5%-6%.
30.HistoricalevidencefortheU.S.economyindicatesthat
a.recessionshaveoccurredroughlyonceeverysixyearssincethe1960s.
b.theunemploymentrateusuallydecreasesduringarecessionandincreasesshortlyaftertherecessionends.
c.realGDPusuallyremainsroughlyconstantduringarecessionanddecreasesshortlyaftertherecessionends.
d.changesinrealGDPoverthebusinesscyclearelargelyattributabletochangesininvestmentoverthebusinesscycle.
31.Whichofthefollowingrisesduringrecessions?
a.layoffsandconsumerspending
b.layoffsbutnotconsumerspending
c.consumerspendingbutnotlayoffs
d.neitherlayoffsnorconsumerspending
32.In2008,theUnitedStateswasinrecession.Whichofthefollowingthingswouldyounotexpecttohavehappened?
a.increasedlayoffsandfirings.
b.ahigherrateofbankruptcy.
c.increasedclaimsforunemploymentinsurance.
d.increasedrealGDP.
33.Whichofthefollowingiscorrectconcerningrecessions?
a.Theycomeatfairlyregularandpredictableintervals.
b.Theyareassociatedwithcomparativelylargeincreasesininvestmentspending.
c.TheyareanyperiodwhenrealGDPgrowthislessthanaverage.
d.Theytendtobeassociatedwithrisingunemploymentrates.