What term is given to unemployment caused by a downturn in the business cycle ?

Related Mcqs:

1. Unemployment benefits may increase the unemployment rate because unemployment benefits ?

   A. encourage people to quit their jobs
   B. reduce the cost of job search
   C. enable people to quit searching for work
   D. reduce the benefits of additional job searching

2. Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?

   A. None of these answers
   B. Disagree because they have different scientific judgments
   C. really don’t disagree at all. It just appears that they disagree
   D. disagree because they have different values

3. When economists use the term real business cycle theory they are suggesting that business cycles are caused by ?

   A. Shifts in aggregate supply
   B. changes in export demand due to the state of the world economy
   C. business confidence
   D. business expectations

4. If the economy is at the peak of the business cycle, aggregate demand ____ unemployment _______ inflation _______ and the current account of the balance of payments is likely to move towards _______?

   A. rise; falls; rise; deficit
   B. falls; rises; falls; surplus
   C. falls; falls; falls; surplus
   D. is static; low; rises; deficit

5. If the economy is in the though phase of the business cycle, aggregate demand ____ unemployment ______ inflation ______ and the current account of the balance of payments is likely to move towards ________?

   A. falls; falls; falls; surplus
   B. falls; rises; falls; surplus
   C. is static; low; rises; deficit
   D. rises; falls; rises; deficit

6. If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?

   A. falls; rise; falls; surplus
   B. is static; low; rise; deficit;
   C. falls; falls; falls; surplus
   D. rise; falls; rises; deficit

7. If the economy is in the recessionary phase of the business cycle, aggregate demand ___ unemployment ____ inflation ___ and the current account of the balance of payments is likely to move towards ____?

   A. falls; falls; falls; surplus
   B. is static; low; rises; deficit
   C. falls; rises; falls; surplus
   D. rises; falls; rises; deficit

8. Unemployment resulting from imperfect information in the labour market is called ____ unemployment?

   A. Frictional
   B. natural
   C. real-wage
   D. disequilibrium

9. In the short run unemployment may fall below the natural rate of unemployment if ?

   A. Nominal wages have risen less than inflation
   B. Nominal wages have risen at the same rate as inflation
   C. Nominal wages have risen more than inflation
   D. Nominal wages have risen less than unemployment

10. Suppose two economists are arguing about policies that deal with unemployment One economist says the government should fight unemployment because it is the greatest social evil The other economist response Nonsense Inflation is the greatest social evil These economists ?

    A. really don’t disagree at all It just appears that they disagree.
    B. disagree because they have different values.
    C. none of these answers.
    D. disagree because they have different scientific judgments.