Chapter 10 1. Ross Pearl is a crackerjack salesperson. He could probably sell an

Question

Chapter 10 1. Ross Pearl is a crackerjack salesperson. He could probably sell anything to out of business. Until he finds a new position, Mr. Pearl isunemployed nyone. The company he works for goes A. Frictionally B. Structurally C. Cyclically 2. Troughs occur A. two or three times a year. B. two or three times in every business cycle. C. at the bottom of business cycles. D. about once every 25 years. 3. The recovery phase of the business cycle ends when A we reattain the level of the previous peak B. we reattain the level of the previous trough. C. we go into the next recession. D. we are back at full employment 4. If the number of unemployed stays the same and the number of people in the labor force declines A. The unemployment rate will rise. B. the unemployment rate will fl C. the unemployment rate will stay the same. D. There is not enough information to determine what will happen to the unemployment rate. We have had some degree of inflation since A. 1900. B. 1920. C. 1940 D. 1960. 5.

Explanation / Answer

1. Ross Pearl is a crackerjack salesperson. He could probably sell anything to anyone. The Company he works for goes out of business. Until he finds a new position, Mr.Pearl is frictionally unemployed.

a) Frictionally

Explanation :- The time spent between jobs, when a person searches for another job is called a frictional unemployment. Here, Mr.Pearl was a very good employee, he has to find another job because his company is going to shut down and that is the reason he has to find another job.

2. Troughs occur
C. at the bottom of business cycles

Explanation : - When a business activity is declined and directs to the transition to expansion which happens at the end of a business cycle, it is said to be a stage of trough.

3. The recovery phase of the business cycle ends when
A. we reattain the level of the previous peak.

Explanation :- After recession the economy regains and exceeds the peak employment levels that is where the recovery phase ends.

4. If the number of unemployed stays the same and the number of people in the labour force declines
A.The unemployment rate will rise

Explanation :- As the number of people in labour force declines, but there is work and the number the unemployed is the same, they are not taken into the employed category, so definitely the rate of unemployment increases.

5. We have had some degree of inflation since
D. 1960

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