macro test

the business cycle dating committee defines a recession as

a significant decline in activity visible in industrial production, employment real income and wholesale/ retail trade lasting more than a few months

cyclical unemployment is the result of

a slowdown in the economy

an example of a final good would be

a soy latte sold by Starbucks to a student

minimum wage laws cause unemployment because the legal minimum wage is set

above the market wage, causing labor demand to be less than labor supply

the consumer price index is the

average prices of goods and services purchased by a typical urban family of four

which of the following policies would reduce frictional unemployment

building an on- line job database that helps workers find jobs

Sarah is a full- time student who is not looking for work, what kind of unemployment is Sarah experiencing?

Sarah is not experiencing unemployment

Which of the following could cause nominal GDP to decrease next year, but real GDP to increase

The price level fails and the quantity of final good and services produced rises

countries with high rates of economic growth tend to have

a labor force that is more productive

A recession often begins with​ a(n) ________ in spending by firms on capital goods and​ a(n) ________ in spending on durable goods by households.

decrease; decrease

Since 1948, the labor force participation rate for adult men has ________ and for adult women has ________.

decreased; increased

which of the following cause the unemployment rate as measures the Bureau of labor statistics to understate extent of joblessness

discouraged workers

the informal sector cab be significant drag on the economies of developing countries because the firms in the informal sector

do not pay taxes to the government

during a recession, spending on ________ tends to fall more dramatically than spending on _____.

durable goods; nondurable goods

most economists believe that the return of _______ during the 2007- 2009 recession isa key reason why the recession was so severe

financial inflation

the advice keep searching there are plenty of jobs around here for which you are qualified" would be most appropriate for which of the following type of unemployment

frictional unemployment

which of the following would decrease the unemployment rate?

government aid to retrain unemployed workers

When the economy enters a recessionary phase of the business cycle, unemployment tends to

increase

Inflation tends to ________ during the expansion phase of the business cycle and ________ during the recession phase of the business cycle.

increase; decrease

during a business cycle expansion, total production _________ and total unemployment_________

increases; increases

Which of the following is not directly counted in GDP

intermediate goods

which of the following increases labor productivity

inventions of new machinery equipment or software

which of the following is true about the consumer price index

it assumes that consumers purchase the same amount of each product in the market basket each month

the United States has _______ social insurance programs and generally has a _______ unemployment rate as compared to Canada and Western Europe

less generous; lower

human capital refers to which of the following

the accumulated knowledge and skills workers acquire from education and training or from their life experiences

the average price of goods and services in the economy is generally known as

the price level

GDP

. $1,600

Assume the average annual CPI values for 2017 and 2018 were 207.3 and 215.3, respectfully. What was the percent increase in the CPI between these two years.

. 3.86

Gross Domestic Product is calculated by summing up

. The total market value of final goods and services produced in the economy during a period of time.

There is a federal budget deficit when?

. the gov. spends more that it collects in taxes

UNEMPLOYEMNT RATE PICTURE

100/1,000 x 100

if nomad GDP is $5 trillion and real GDP is $4 trillion the GDP deflator is

125

according to the rule of 70, it will take 4 years for real GDP per capita to double when the growth rate of real GDP

17.5 %

nominal GDP and real GDP

2016

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

4.7%

the GDP deflator in year 2 is 105 using year 1 as the base year this means that on average the cost of goods and services is

5% is higher in year 2 than in year 1

In the circular flow model, the value of total production for an economy____________ the value of total expenditure on final goods and services.

Equals

Since 1950 expansions in the United States have become ________, while recessions have become ________

Longer: shorter

which of the following is likely to increase measured GDP?

Marijuana becomes legal to grow and sell.

Since the 1950s,

U.S. business cycle fluctuations have become milder.

Grandpa earned $7,000 a year in his first job in 1961. You earn $35,000 in your first year in 2018. You know the average prices have risen since 1961.

less than 5x as much as your grandfather in terms of real income.

what is the name of the organization that defines business cycle peaks and throughs in the United States

national bureau of economic research

in 2016 which component of GDP had a negative value

net exports

the bureau of labor services would categorize a retiree who is not working as _____

out of the labor force

Long run- economic growth requires all the following except?

political instability

during the expansion phase of the business cycle

production increase

If Ebenezer Scrooge spends rather than saves his vast wealth he will

slow economic growth because he is reducing the amount of funds available for investment

The advice to "retrain" would, be most appropriate for which of the following types of unemployment

structural unemployment

If labor productivity growth slows down in a​ country, this means that the growth rate in​ ________ has declined.

the quantity of goods or services that can be produced by one hour of work

according to the txt, economists consider full employment to occur when?

the unemployment rate consists of only frictional and structural unemployment.