1.The U6 measure of unemployment is approximately 1/2 the U3 official rate. True
ID: 1132485 • Letter: 1
Question
1.The U6 measure of unemployment is approximately 1/2 the U3 official rate.
True
False
2.Market failure is the focus of the Keynesian School.
True
False
3.The monetary base is composed of currency in circulation and bank reserves, and is known as "high powered money."
True
False
4.In the Great Depression, U.S. industrial production fell by approximately:
46.8%.
10.2%.
90%.
23.3%.
5.The Great Recession in the Idaho (2007-2009) was not as severe as the 1980-1982 recessions.
True
False
6.From the end of the U.S. Civil War up to the Great Depression, the political party that dominated national elections was :
Federalist
Socialist.
Democrat.
Republican
46.8%.
10.2%.
90%.
23.3%.
Explanation / Answer
1.
U6 is the real unemployment rate and U3 is the unemployment rate often in the media. The former is a broader concept compared to the latter. The former includes marginally attached or discouraged workers that is why it is almost double of the latter.
The correct option is FALSE
2.
Market failure was the focus of Keynesian school as it was asserted after the great depression of 1929 and affirmed that the economy operates below full employment and government intervention is required to prevent market failure.
the correct option is TRUE
3.
Monetary base consists of currency in circulation and deposits held by banks or bank's reserves. It is also known as high powered money.
the correct option is TRUE
4.
In the great depression, the industrial production fell by approximately 46.8 %. It was the longest economic downturn ever experienced by the industrialized world.
the correct option is (a)
5.
The severity of a recession is evaluated by its longevity and the decline in the economic activity that results due to the recession. The 2007-08 recession was the longest in the postwar period, both employment and output fell drastically.
the correct option is FALSE
6
The Republican party is one of the oldest political parties along with the Democratic party. From the end of the US civil war up to great depression, the political party that dominated national elections was the Republican party.
the correct option is d
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