Economics: Why might the fraction of the unemployed
Subject: Economics / General Economics
Questions for Ch. 11 – 14
Answer each of the questions completely, making sure you use proper grammar and spelling.
Partial points can be awarded if you happen to miss the nail, so be sure to fully explain your
answers. Failing to do so could result in receiving a zero for that question. Feel free to print this
out and write your answers, then scan the pages and upload them onto Canvas. If you choose to
use Word, then please make sure you adjust the spacing to make it easier to grade.
1. (2 pts) Why might the fraction of the unemployed who are job leavers be higher in a
period of strong labor demand?
2. (8 pts.) In a severe recession, what would tend to happen to the people in the following
a. Job losers b. Job leavers c. Reentrants d. New entrants
3. (6 pts.) What are the reasons for unemployment?
4. (6 pts.) What are some of the threats posed by inflation?
5. (8 pts.) What are the criticisms on how we typically measure inflation?
6. (10 pts.) How to we measure the output of an economy? What are the components
measured? Are there any criticisms with this method?
7. (10 pts.) What are the different ways an economy can grow?
8. (6 pts.) Why is aggregate demand downward sloping? What causes it to shift?
9. (8 pts.) Why is aggregate supply upward sloping? What causes it to shift? In the long run,
why is it vertical?
10. (6 pts.) What role does the government play in the economy? How are they able to
achieve their goals? In other words, what methods do they use and when?
11. (5 pts.) What are the effects of tax cuts on the supply side? Is there any criticism to this, if so, what?