Macro 2

test 2 question 26

2.5 percent

If real GDP per capita doubles between 2005 and 2020, what is the average annual growth rate of real GDP per capita?

4.7%

Which one of the following is an example of a worker experiencing cyclical unemployment

a freightliner employee that got laid off because of the recession of 2007-2009

If consumers decide to be more frugal and save more out of their incomes, then this will cause

a shift in the supply for loanable funds to the right

cyclical unemployment is the result of

a slowdown in the economy

Which of the following governments provisions would help increase the accumulation of knowledge capital?

education subsides, copyrights, patents

Technological improvements are more likely to occur if

entrepreneurs are compensated for taking risks with higher profits

Most economists believe that the return of _____ during the 2007-2009 recession is a key reason why the recession was so severe.

financial instability

creative destruction means that

firms develop new products that replace old products in the economy, thereby encouraging economic growth

A student who just graduated from college but has not found a job would most likely be

frictionally unemployed

The percent increases in the CPI from one year to the next is a measure of the

inflation rate

Which of the following increases labor productivity?

inventions of new machinery, equipment, or software

When the government runs a budget deficit, we would expect to see that

investment will fall

an unemployment insurance program has which of the following effects?

it increases the amount of time spent searching for a job

The quantity of goods and services that can be produced by one worker or by one hour of work is referred to as

labor productivity

By offering more generous unemployment insurance programs, European countries can expext

longer periods of unemployment for their workers

Someone who is available for work but has not actively looked for work in the previous four weeks would be classified as

not in the labor force

a consumer price index of 160 in 1996 with a base year of 1982-1984 would mean that the cost of the market basket

rose 60% from the cost of the market basket in the base year

Globalization refers to

the process of countries becoming more open to foreign trade and investment

Which of the following explains the changes in the U.S. adult male labor force participation rate since 1948?

younger men are remaining in school longer as compared to the past

when the economy reaches a tough in a business cycle, which of the following will occur?

Income, production, and employment will begin to rise

Since the 1950s,

U.S. business cycle fluctuations have become milder

Which of the following is not one of the three sources of technological change?

additional amounts of existing capital

Which of the following will increase investment spending in the economy, all else being equal?

an increase in the federal government surplus

An increase in cyclical unemployment will result in

an increase in the unemployment rate

Which of the following would increase the unemployment rate?

an increase in unemployment insurance payments

Which of the following price indices comes closest to measuring the cost of living of the typical household?

consumer price index

Most of the unemployment that occurred during the Great Depression was

cyclical unemployment

If labor productivity growth slows down in a country, this will

slow down the increase in real GDP per capita

According to a study by economists Raymond Fisman and Edward Miguel, as the level of corruption in a country increases,

so does the number of parking violations by the country's United Nations delegates

Because of the productivity slowdown in the United State form the mid-1970 through the mid-1990s

the GDP per capita grew more slowly

Which of the following is not a reason why low- income countries might experience low economic growth?

the country has a good education system