A. includes frictional, structural, and cyclical unemployment. B. is equal to zero. C. is always greater than the actual unemployment rate. D. includes structural and frictional unemployment. E. is equal to zero when there is no cyclical unemployment. ____ 38. Ron quit his job in retail management and moved to Florida with his wife, a physician who opened a new practice there. He was not successful in his job search for the next four months. This type of unemployment is known as: A. structural unemployment. B. cyclical unemployment. C. frictional unemployment. D. seasonal unemployment. E. natural unemployment. ____ 39. Structural changes in an economy as well as changes in consumer tastes are reasons for: A. job creation and job destruction. B. job searches. C. unemployment during recessions. D. unemployment during expansions. E. business cycles. ____ 40. When hyperinflation forces Emily to visit her bank very frequently to keep her cash holdings to a minimum, economists say that Emily is experiencing a: A. search cost. B. menu cost. C. unit-of-account cost. D. Fisher effect. E. shoe-leather cost. ____ 41. Menu costs of inflation are the: A. costs associated with money being a less reliable unit of measurement. B. costs of transactions associated with avoiding the inflation tax. C. costs associated with businesses changing prices. D. revenue the government gets from printing money. E. costs associated with negotiating lower prices. ____ 42. Unanticipated inflation: A. helps those on fixed incomes. B. hurts borrowers and helps lenders. C. helps borrowers and hurts lenders. D. causes nominal interest rates to decrease. E. causes people to hold more cash. ____ 43. When there is deflation in the economy: A. the general price level falls. B. the general price level increases. C. the nominal interest rate rises. D. the general price level becomes negative. E. the Consumer Price Index becomes negative. ____ 44. If money income remains the same, while the average price level doubles, then: A. nominal income will fall.
A. includes frictional, structural, and cyclical unemployment. B. is equal to zero. C. is always greater than the actual unemployment rate. D. includes structural and frictional unemployment. E. is equal to zero when there is no cyclical unemployment. ____ 38. Ron quit his job in retail management and moved to Florida with his wife, a physician who opened a new practice there. He was not successful in his job search for the next four months. This type of unemployment is known as: A. structural unemployment. B. cyclical unemployment. C. frictional unemployment. D. seasonal unemployment. E. natural unemployment. ____ 39. Structural changes in an economy as well as changes in consumer tastes are reasons for: A. job creation and job destruction. B. job searches. C. unemployment during recessions. D. unemployment during expansions. E. business cycles. ____ 40. When hyperinflation forces Emily to visit her bank very frequently to keep her cash holdings to a minimum, economists say that Emily is experiencing a: A. search cost. B. menu cost. C. unit-of-account cost. D. Fisher effect. E. shoe-leather cost. ____ 41. Menu costs of inflation are the: A. costs associated with money being a less reliable unit of measurement. B. costs of transactions associated with avoiding the inflation tax. C. costs associated with businesses changing prices. D. revenue the government gets from printing money. E. costs associated with negotiating lower prices. ____ 42. Unanticipated inflation: A. helps those on fixed incomes. B. hurts borrowers and helps lenders. C. helps borrowers and hurts lenders. D. causes nominal interest rates to decrease. E. causes people to hold more cash. ____ 43. When there is deflation in the economy: A. the general price level falls. B. the general price level increases. C. the nominal interest rate rises. D. the general price level becomes negative. E. the Consumer Price Index becomes negative. ____ 44. If money income remains the same, while the average price level doubles, then: A. nominal income will fall.
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