Macro exam 2 multiple choice
According to Okun`s law, if unemployment rises by 5 percent while imports and exports increase at roughly the same, the economy will lose output equal to
10 percent
Pop: 250000 LF: 145000 UE: 35000 UTW: 10000 Unwilling: 5000 Unemployment rate
24.1
Population that is labor force
50 percent
nominal GDP: 10000 (2): 15000 2 as high
7500
Which of the following is included in the labor force?
A part-time store clerk who is looking for another job
Which of the following is investment, according to an economist?
An increase in business inventories
Real GDP is used most effectively to
Analyze the growth rate of the economy over time
People are not part of the labor force when they:
Are old enough to work but choose not to work.
Inflation means
Average prices are rising, but it is not certain what is happening to relative prices.
Which of the following explains why redistribution occurs during inflation?
Because all prices do not change at the same rate, people buy different combinations of goods and services and own different combinations of wealth
Which of the following groups typically has the highest unemployment rate?
Black teenagers
A nation`s GDP is
C+I+G+(X-M)
Which of the following unemployment categories is most clearly related to the rate of growth in real GDP?
Cyclical
During a period of unanticipated inflation:
Debtors are better off and creditors are worse off.
From 1950 until 200 the labor force participation rate has
Decrease for men and increased for women
National income accounts assist
Economic policy makers in formulating policies and evaluating performance.
What is the likely consequence of an unemployment rate falling below the rate at which "full employment" is achieved?
Increased inflationary pressures
Of the following reasons for unemployment, which will increase most because of a recession?
Job losers
The macro consequence of unemployment is
Lost output for the economy
Which of the following is considered a discouraged worker?
No tryout so he stops looking
The amount of money income received in given time period, measured in current dollars, is
Nominal income
The redistributive mechanics of inflation include all of the following except:
Output effects
If a nation experiences high inflation
PPC outward
During a period of deflation,
People on fixed incomes are better off
When the price of a product rises faster than the inflation rate,
Real incomes of the consumers of that product fall
Which of the following is directly included in the calculation of GDP?
The final sale of a brand new Cadillac
Your real income is
The purchasing power of the money you receive.
Which of the following is a microeconomic consequence of inflation?
The wealth effect
Real GDP is the
Value of final output produced in a given period measured in constant prices
GDP can be calculated by all of the following methods except
adding up all income and expenses by consumers and businesses.
Inflation is
an increase in the average level of prices of goods and services
When unemployed people stop looking for jobs, the unemployment rate
decrease and the labor force decreases
When the price of a good decreases more slowly than index of average prices decreases, the good`s relative price
has risen while its actual price has fallen
When people make decisions on the basis of the face value of currency rather than the real value, their decisions reflect
money illusion
Real income is
nominal income adjusted for inflation
nominal GDP:11500 price index:111.6
real GDP: 10305
payment of goodwill
remain unchanged
Relative price is
the price of one good in comparison with the price of other goods
A nation`s GDP can be calculated as
the total value added at all stages of production
Net exports are
the value of exports minus the value of imports