11) Suppose that during a given month 200,000 persons who had been self-employed leave their business and get jobs working for other businesses. This might give __________ bias to the __________ indicator. A) an optimistic; unemployment rate B) a pessimistic; unemployment rate C) an optimistic; payroll employment D) a pessimistic; payroll employment 12) Suppose that during a given month 500,000 persons quit their job to become self-employed. This will cause A) the unemployment rate to fall. B) the unemployment rate to rise. C) payroll employment to rise. D) payroll employment to fall. E) no change in either the unemployment rate or payroll employment. 13) Suppose that during a given month 200,000 persons who had been self-employed leave their business and get jobs working for other businesses. This will cause A) the unemployment rate to rise. B) the unemployment rate to fall. C) payroll employment to rise. D) payroll employment to fall. E) no change in either the unemployment rate or payroll employment. 14) A person with two jobs is counted __________ in the household survey and __________ in the establishment survey. A) once; once B) once; twice C) twice; once D) twice; twice 15) “Housing starts” is __________ indicator. A) a leading B) a coincident C) a lagging D) an inconsistent 16) A reduction in housing starts, typically due to __________ interest rates, is often thought to precede __________. A) rising; an expansion B) rising; a recession C) falling; an expansion D) falling; a recession 17) An increase in housing starts, typically due to __________ interest rates, is often thought to precede __________. A) rising; an expansion B) rising; a recession C) falling; an expansion D) falling; a recession 18) The Purchasing Managers’ Index is __________ indicator. A) a leading B) a coincident C) a lagging D) an inconsistent 19) A Purchasing Manager’s Index above 50 indicates A) an expanding manufacturing sector. B) a downturn in economic activity. C) an increase in bond prices in the near future. D) an expanding retail sector. 20) A Purchasing Manager’s Index below 50 indicates A) a declining retail sector. B) a downturn in economic activity. C) an increase in bond prices in the near future. D) a declining manufacturing sector. 21) Leading economic indicators are economic indicators that __________ changes in economic activity A) change after B) change at the same time as C) change before D) None of the above. 22) Which of the following is not in the index of leading economic indicators? A) Average workweek B) Initial unemployment claims C) Building permits D) Producer price index 23) It takes __________ consecutive monthly changes in the LEI before a change in economic activity is being foreshadowed. A) two B) three C) four D) six