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The high unemployment rates of the early 1960s occasioned a spirited debate within the economics profession. One group found the primary cause of unemployment in slow growth and the solution in economic expansion. The other found the major explanation in changes that had occurred in the supply and demand for labor and stressed measures for matching demand with supply.
The expansionist school of thought, with the Council of Economic Advisers as its leading advocates, attributed the persistently high unemployment level to a slow rate of economic growth resulting from a deficiency of aggregate demand for goods and services. The majority of this school endorsed the position of the Council that tax reduction would eventually reduce the unemployment level to 4% of the labor force with no other assistance. At 4%, bottlenecks in skilled labor, middle-level manpower, and professional personnel were expected to retard growth and generate wage-price pressures. To go beyond 4%, the interim goal of the Council, it was recognized that improved education, training and retraining, and other structural measures would be required. Some expansionists insisted that the demand for goods and services was nearly satiated and that it was impossible for the private sector to absorb a significant increase in output. In their estimate, only the lower-income fifth of the population and the public sector offered sufficient outlets for the productive efforts of the potential labor force. The fact that the needs of the poor and the many unmet demands for public services held higher priority than the demands of the marketplace in the value structure of this group no doubt influenced their economic judgments.
Those who found the major cause of unemployment in structural features were primarily labor economists, concerned professionally with efficient functioning of labor markets through pro-grams to develop skills and place individual workers. They maintained that increased aggregate demand was a necessary but not sufficient condition for reaching either the CEA’s 4% target or their own preferred 3%. This pessimism was based, in part, on the conclusion that unemployment among the young, the unskilled, minority groups, and depressed geographical areas is not easily attacked by increasing general demand. Further, their estimate of the numbers of potential members of the labor force who had withdrawn or not entered because of lack of employment opportunity was substantially higher than that of the CEA. They also projected that increased demand would put added pressure on skills already in short supply rather than employ the unemployed, and that because of technological change, which was replacing manpower, much higher levels of demand would be necessary to create the same number of jobs.
The structural school, too, had its hyperenthusiasts: Fiscal conservatives who, as an alternative to expansionary policies, argued the not very plausible position that a job was available for every person, provided only that he or she had the requisite skills or would relocate. Such extremist positions aside, there was actually considerable agreement between two main groups, though this was not recognized at the time. Both realized the advisability of a tax cut to increase demand, and both needed to reduce unemployment below a point around 4%. In either case, the policy implications differed in emphasis and not in content.
1. The primary purpose of the passage is to
(A) suggest some ways in which tools to manipulate aggregate demand and eliminate structural deficiencies can be used to reduce the level of unemployment
(B) demonstrate that there was a good deal of agreement between the expansionist and structuralist theories on how to reduce unemployment in the 1960s
(C) explain the way in which structural inefficiencies prevent the achievement of a low rate of unemployment without wage-price pressures
(D) discuss the disunity within the expansionist and structuralist schools to show its relationship to the inability of the government to reduce unemployment to 4%
(E) describe the role of the Council of Economic Advisers in advocating expansionist policies to reduce unemployment to 4%
2. Which of the following is not mentioned in the passage as a possible barrier to achieving a 4% unemployment rate through increased aggregate demand?
(A) Technological innovation reduces the need for workers, so larger increases in demand are needed to employ the same number of workers.
(B) The increase in output necessary to meet an increase in aggregate demand requires skilled labor, which is already in short supply, rather than unskilled labor, which is available.
(C) An increase in aggregate demand will not create jobs for certain subgroups of unemployed persons such as minority groups and young and unskilled workers.
(D) Even if the tax reduction increases aggregate demand, many unemployed workers will be unwilling to relocate to jobs located in areas where there is a shortage of labor.
(E) An increase in the number of available jobs will encourage people not in the labor market to enter it, which in turn will keep the unemployment rate high.
3. The author’s treatment of the “hyperenthusiasts” (Text in Red) can best be described as one of
(A) strong approval
(B) lighthearted appreciation
(C) summary dismissal
(D) contemptuous sarcasm
(E) malicious rebuke
4. Which of the following best describes the difference between the position taken by the Council of Economic Advisers and that taken by dissenting expansionists (Text in Blue)?
(A) Whereas the Council of Economic Advisers emphasized the need for a tax cut to stimulate general demand, the dissenters stressed the importance of structural measures such as education and training.
(B) Although the dissenters agreed that an increase in demand was necessary to reduce unemployment, they argued government spending to increase demand should fund programs for lower income groups and public services.
(C) The Council of Economic Advisers set a 4% unemployment rate as its goal, and dissenting expansionists advocated a goal of 3%.
(D) The Council of Economic Advisers rejected the contention, advanced by the dissenting expansionists, that a tax cut would help to create increased demand.
(E) The dissenting expansionists were critical of the Council of Economic Advisers because members of the Council advocated politically conservative policies.
5. The passage contains information that helps to explain which of the following?
(A) The fact that the economy did not expand rapidly in the early 1960s.
(B) The start of wage-price pressures as the unemployment rate approaches 4%.
(C) The harmful effects of unemployment on an individual worker.
(D) The domination of the Council of Economics by expansionists.
(E) The lack of education and training among workers in some sectors.
6. Which of the following best describes the author’s attitude toward the expansionists (Highlighted)?
(A) The author doubts the validity of their conclusions because they were not trained economists.
(B) The author discounts the value of their judgment because it was colored by their political viewpoint.
(C) The author refuses to evaluate the value of their contention because he lacks sufficient information.
(D) The author accepts their viewpoint until it can be demonstrated that it is incorrect.
(E) The author endorses the principles on which their conclusions are based but believes their proposal to be impractical.
7. It can be inferred from the passage that the hyperenthusiasts (Text in Red) contended that
(A) the problem of unemployment could be solved without government retraining and education programs
(B) the number of persons unemployed was greatly overestimated by the Council of Economic Advisers
(C) a goal of 3% unemployment could not be reached unless the government enacted retraining and education programs
(D) the poor had a greater need for expanded government services than the more affluent portion of the population
(E) fiscal policies alone were powerful enough to reduce the unemployment rate to 4% of the work force
参考答案： BDCBBBA
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发表于 2021-8-19 15:10:59
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