Macroeconomics

use the values for nominal GDP and real GDP given in the following table to calculate the inflation rate during 1930: 1929: nominal 103.6 billion real 977.0 billion 1930: nominal 91.2 real 892.8 the inflation rate for this period was ___

-3.6%

What is fiscal policy? a. The fractional reserve system that allows banks to expand the money supply through lending. b. Changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives. c. The regulations that influence trade and taxation throughout the country. d. The actions the Federal Reserve takes to manage the money supply and interest rates.

Changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives

suppose the population of a fictional economy falls into the following categories: 320 are employed full time, 110 are employed part time, 20 are unemployed but are actively looking for employment, 50 are unemployed but are not actively looking for employment. the official unemployment rate as calculated by the BLS would be a. 4.4% b. 5.9% c. 14.0% d. 28.9%

4.4%

The following list the five steps generally used in building an economic model. (Mark numbers for the correct order). ___ Retain the revised model to help answer similar economic questions in the future. ___ Formulate a testable hypothesis ___ Decided on assumptions to be used in developing the model and decide which endogenous variable will be explained by the model, and which exogenous variables will be taken as given. ___ Revise the model if it failst o explain the economic data well. ___ Use economic data to test the hypothesis

5 2 1 4 3

in January 2010, the approximate value of US oil imports was $26.5 billion. In January 2011, the approximate value of US oil imports was $35.2 billion. the average price per barrel of crude oil in January 2010 was $75. by January 2011, the price had rise to $91 per barrel. by what percentage had the quantity of oil imported change? the percentage change in the quantity of oil imported was __%

9

a country in which a substantial amount of factories and stores that produce domestic goods and services are foreign-owned is most likely a country in which a. GDP is much larger than GNP b. GDP is roughly equal to GNP c. GNP is much larger than GDP d. the relationship between GDP and GNP no longer exists

GDP is much larger than GNP

Which of the following are good examples of items measured through imputed values? a. Vegetables, meats and breakfast cereal b. services of doctors and lawyers c. Police and fire services, or the value of living in your own home d. all of the above

Police and fire services, or the value of living in your own home

all of the following are examples of residential investment spending excpet a. the purchase of a new apartment buildling by a property management company b. sandra purchases her childhood home from her parents c. tobias purchases a new duplex and plans to live in one half and rent the other half to his brother Dorian d. the purchase of a new home by the MacGregor family

Sandra purchases her childhood home from her parents

all else equal, an increase in net exports accompanied by a decrease in expected future profits would definitely result in a. a decrease in the equilibrium real interest rate b. a decrease in the equilibrium level of saving and investment c. an increase in the equilibrium level of saving and investment d. an increase in the equilibrium real interest rate

a decrease in the equilibrium level of saving and investment

if we define "actual GDP" as GDP measured with the inclusion of such things as household production, illegal goods and services, and other typically excluded variables, how would actual GDP have changed? a. actual GDP would have increased by less than measured GDP b. actual GDP would have stayed the same c. actual GDP would have decreased d. actual GDP would have icnreased by more than measured GDP

actual GDp would have increased by less than measured GDP

The unemployment rate may understate the true extent of unemployment due to a. marginally attached workers b. part-time workers who would prefer to work full time c. discouraged workers d. all of the above

all of the above

an example of a financial intermediary is a. commercial banks b. mutual funds c. insurance companies d. all of the above

all of the above

asset bubbles are bad for the economy because a. if bubbles end quickly, they can wipe out wealth of investors b. the popping of an asset bubble can harm financial institutions who financed the overvaleud assets c. they can lead to the misallocation of resources d. all of the above

all of the above

the supply of loanable funds is determined by a. the extent of foreign saving that is invested in US financial markets b. the willingness of households to save c. the extent of government saving d. all of the above

all of the above

the unemployment rate may understate the true extent of unemployment due to a. discouraged workers b. marginally attached workers c. part-time workers who would prefer to work full time d. all of the above

all of the above

Which of the following best describes a business cycle? a. Two consecutive quarters of negative real GDP growth b. any period in which real GDP deviates from its potential c. fluctuations in the rate of investment that cause a decrease in demand d. alternating periods of economic expansion and economic recession

alternating periods of economic expansion and economic recession

all else equal, an increase in the government's budget deficit accompanied by a decrease in corporate taxes would definitely result in a. a decrease in the equilibrium real interest rate b. an increase in the equilibrium real interest rate c. a decrease in the equilibrium level of saving and investment d. an increase in the equilibrium level of saving and investment

an increase in the equilibrium real interest rate

what is the difference between the price level and the rate of inflation? the price level is the ______ and the rate of inflation is the ______.

average price of goods and services, percentage change in prices

What is the Great Moderation? a. a period of mild business cycles with relatively low peak unemployment rates in the US that lasted from 1984 to 2007 b. a severe worldwide economic downturn in the decade preceding World War II c. a period of moderately low peak unemployment rates in the US that has lasted for the last 50 years d. a situation where the average peak unemployment rates across developed nations are approximately equal

a period of mild business cycles with relatively low peak unemployment rates in the US that lasted from 1984 to 2007

moral hazard occurs when a. actions people take after they have entered into a transaction make the other party worse off b. the government makes choices that lead to resource misallocation c. one party to a transaction takes advantage of knowing more than the other party d. optimal behavior occurs in financial markets

actions people take after they have entered into a transaction make the other party worse off

Why is spending on programs similar to the Social Security and Medicare programs in the United States increasing in other high-income countries? a. Since economic growth has not kept pace with inflation, real revenues have decreased. b. Becuase governments are increasing the generosity of retirement benefits. c. Because the average retirement age is decreasing, so there are more years to pay benefits. d. Since populations are aging, there are fewer workers to fund the programs.

Since populations are arging, there are fewer workers to fund the programs

which of the following best represents government saving? a.(Y+TR) - (C+T) b. (Y-C-G-NX) c. (Y-TR) + I d. T-(G+TR)

T-(G+TR)

What is monetary policy? a. Changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives b. The fractional reserve system that allows banks to expand the money supply through lending c. The regulations that influence trade and taxation throughout the country d. The actions of the Federal Reserve takes to manage the money supply and interest rates

The actions the Federal Reserve takes to manage the money supply and interest rates

a financial asset is a. a claim on someone else to pay you money b. direct ownership of physical capital c. gold, real estate, and other physical items of value d. all of the above

a claim on someone else to pay you money

a _____ is a situation in which many banks simultaneously experience depositors simultaneously withdrawing their funds.

bank panic

a ____ is the process by which depositors who have lost confidence in the bank simultaneously withdraw their funds.

bank run

a bank run can cause a bank to fail because a. regulatory agencies will force banks to be shut down if depositors lose faith in them b. banks make long-term loans and hold only a fraction of deposits on hand c. banks do not intend to repay depositors d. if regulatory agencies find out that banks have loaned out deposits, they will shut them down

banks make long-term loans and hold only a fraction of deposits on hand

why is the CPI likely to overstate the inflation rate? a. because the CPI includes new goods, which are more expensive b. because consumers will substitute away from products when their prices rise, but the CPI assumes that consumers purchase the same quantity of each product in the market basket c. because the market basket of goods does not represent all consumers d. because the CPI does not include all of the same goods included in GDP

because consumers will substitute away from products when their prices rise, but the CPI assumes that consumers purchase the same quantity of each product in the market basket

If the actual inflation rate is less than the expected inflation rate, lenders will be ________.

better off

a financial intermediary a. stores gold, silver and other hard assets b. purchases physical capital to receive a stream of returns c. buys and sells houses and real estate assets d. borrows funds from savers and lends them to borrowers

borrows funds from savers and lends them to borowers

how has the unemployment rate varied over time in the United States? In general, the unemployment rate in the US has risen and fallen with the _____.

business cycle

how might you identify how "open" an economy is? a. by the amount of trade that teh economy has with other countries b. by the degree of regulation in financial markets c. by the size of the country's borders d. by the structure of teh legal system

by the amount of trade that the economy has with other countries

what is fiscal policy? a. changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives b. the regulations that influence trade and taxation throught the country c. the actions the federal reserve takes to manage the money supply and interest rates d. the fractional reserve system that allows banks to expand the money supply through lending

changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives

A purchasing power parity exchange rate a. is the level of GDP in different countries b. is determined by the supply and demand for foreign currency c. compares the amount of currency required to buy the same goods in different countries d. is the level of inflation rates in different countries

compares the amount of currency required to buy the same goods in different countries

The four categories of expenditures included in GDP are a. wages, rent, interest and profits b. consumption, investment, exports and imports c. consumption, wages, investment, and profits d. consumption, investment, government purchases, and net exports

consumption, investment, government purchases, and net exports

how is the consumer price index (CPI) calculated?

cost of basket of goods in current year/ cost of basket of goods in base year x 100

adverse selection occurs when a. one party to a transaction takes advantage of knowing more than the other party b. optimal behavior occurs in financial markets c. actions people take after they have entered into a transaction make the other party worse off d. the government makes choices that lead to resource misallocation

one party to a transaction takes advantage of knowing more than the other party

economic models do all of the following except a. portray reality in all its minute details b. answer economic questions c. simplify some aspect of economic life d. make economic ideas explicit and concrete for use by decision makers

portray reality in all its minute details

when a financial asset is first sold, the sale takes place in the ____. subsequent sales take place in the ______.

primary market, secondary market

gross national product (GNP) of the United States is the value of all final goods and services a. produces anywhere in the world by residents of the United States b. produced and consumed within the United States c. produced anywhere in the world, but consumed by residents of the United States d. produced in the United States by residents of any nation

produced anywhere in the world by residents of the United States

A purchasing power parity exchange rate is used to compare per capita GDPs across countries by comparing the _____ instead of the ______

purchasing power of income, nominal value of income

Long-run economic growth is usually measured by increases in a. real GDP b. the rate of investment c. the growht rate of the population d. real GDP per capita

real GDP per capita

the best measure of the standard of living is generally considered to be a. the average duration of a typical business cycle b. labor productivity c. real GDP per capita d. the labor force participation rate

real GDP per capita

the difference between nominal and real GDP is that _____ is measured in base year prices while _____ is measured in market prices. Thus _____ reflects both price and quantity changes, while ____ reflects only quantity changes. Since prices generally rise at least somewhat, changes in nominal GDP _____ changes in total production.

real GDP, nominal GDP, nominal GDP, real GDP, overstate

when the cost of borrowing funds which is stated on a loan is adjusted for the effects of inflation, the resulting interest rate is called the a. prime interest rate b. real interest rate c. nominal interest rate d. core PCE interest rate

real interest rate

during recessions, industries such as construction often cut back on employees. the newly unemployed workers may seek jobs for awhile and then become discouraged if they do not find new jobs. when the economy begins to recover from a recession, the unemployment rate may initally worsen because a. more workers will be laid off b. discouraged workers will reenter the market c. the size of the labor force will decrease d. more workers will quit their jobs

discouraged workers will reenter the market

If you were studying the following relationship, which variable would be exogenous and which would be endogenous? The relatinoship between hours of studying and GPA. GPA is _____ and Hours of studying is _______

endogenous, exogenous

in building an economic model, variables that are taken as given are referred to as ____ variables. a. concrete b. endogenous c. exogenous d. presumptive

exogenous

the primary function of the financial system is to a. control the money supply b. regulate the stock market c. ensure economic growth d. facilitate the flow of funds from lenders to borrowers

facilitate the flow of funds from lenders to borrowers

the higher the real interest rate, the ____ investment projects firms can profitably undertake, and the ____ the quantity of loanable funds they will demand a. more; greater b. fewer; smaller c. more; smaller d. fewer; greater

fewer; smaller

if the actual inflation rate is less than the expected inflation rate, the actual real interest rate will be ____ that the expected real interest rate. when this happens, ____ will lose and _____ will gain. a. less; lenders; borrowers b. greater; borrowers; lenders c. less; borrowers; lenders d. greater; lenders; borrowers

greater; borrowers; lenders

as a percentage of GDP, US imports have been ___ and US imports have been ___ since 1950. a. growing; declining b. growing; growing c. declining; growing d. declining; declining

growing; growing

in the United States, the inflation rate during the past 25 years, a. has, on average, been negative b. has generally been below 5% c. has averaged 0% d. has increased at its fastest pace in history

has generally been below 5%

How has the severity of the business cycle varied over time in the United States? During the past 50 years, the US economy a. has become more stable due to the decreased length of business cycle expansions and decreased length of recessions b. has not experienced anything similar to the sharp fluctuations in real GDP that occurred during the 1930s c. has become less stable d. experienced long business cycle recessions, occassionally interrupted by brief expansions

has not experienced anything similar to the sharp fluctuations in real GDP that occurred during the 1930s

why do the government bailouts during the 2007-2009 financial crisis create worries about moral hazard? a. only banks that engage in risky behavior will want to take out deposit insurance b. if banks think that they will be bailed out, they may engage in excessively risky behavior c. if consumers believe that they will be bailed out, they will take out subprime loans d. regulatory agencies like the federal reserve cannot determine which institutions need additional funds

if banks think that they will be bailed out, they may engage in excessively risky behavior

if you were building a macroeconomic model that explores the effect of an increase in income tax on the size of the labor force, the exogenous variable(s) would be a. income tax rates b. the size of the labor force c. both income tax rates and the size of the labor force d. netiher income tax rates nor the size of the labor force

income tax rates

by the 1960s, a larger percenatge of women were entering the labor force. because mroe women were working, their home production may have fallen. in addition, they may have employed others to do some tasks that they had previously done themselves, such as cleaning their houses and caring for childrend as measuerd by the BEA, these changes caused GDP to _____

increase

the openness of the US economy has a. remained fairly consistent over time b. increased over time c. decreased over time d. decreased over the past 30 years, following a 50 year increase

increased over time

over the past 20 years, foreign financial investment in the United States has a. remained fairly consistent b. increased significantly c. decreased significantly d. become negative

increased significantly

over the past 20 years, purchases of foreign financial assets by US investors has a. increased significantly b. decreased significantly c. remained fairly consistent d. become negative

increased significantly

national income accounting reveals that the value of total production in an economy a. is always equal to the value of total income in the economy b. may be greater than, less than, or equal to the value of total income in the economy c. is always less than the value of total income in the economy d. is always greater than the value of total income in the economy

is always equal to the value of total income in the economy

which of the following is true about the consumer price index? a. it accurately reflects quality changes in goods and services over time b. it assumes that consumers purchase the same quantity of each product in the market basket each month c. it accounts for people switching away from goods whose prices have risen d. it is updated continuously to account for the introduction of new goods

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

in January 2010, the approximate value of US oil imports was $26.5 billion. In January 2011, the approximate value of US oil imports was $35.2 billion. Given the information above, can you conclude that there has been a significant increase in the number of barrels of oil that the US is importnig? a. there has been no change in the number of barrels imported b. there has definitely been a significant increase in the number of barrels imported c. there has definitely been a decrease in the number of barrels imported d. it is impossible to determine the change in the quantity of oil imported given the information above

it is impossible to determine the change in the quantity of oil imported given the information above

international trade is ___ important to the UNited States than to many other countries

less

securitization occurs when a. securities are bought and sold on the secondary market b. companies employ investment banks to underwrite new stock issues c. the treasury auctions new issues of bills and bonds d. loans are bundled together into securities that are resold to investors

loans are bundled together into securities that are resold to investors

from 1950 to 2007, the United States experienced ____ business cycle expanisions, follwed by ____ recessions. a. long; brief b. long; long c. brief; long d. brief; brief

long; brief

what does a central bank do when it acts as a lender of last resort? a. makes loans to banks so that they can make more loans and increase profitability b. makes loans to banks that are having temporary problems, making panics less likely c. takes over banks that are having problems so that depositors are protected d. makes loans to consumers who are having credit problems

makes loans to banks that are having temporary problems, making panics less likely

An imputed value is one that _______

must be estimated

The average growth rate of the US real GDP is approxiamtely 3%, as measured over long periods of time. China has been averaging growth rates that are considerably higher than that for much of the last two decades, while some sub-Saharan African countries have experienced growth rates that are considerably lower than 3% or even negative. The income gap between the US and China is ______. The income gap between the US and these African countries is _____. In general, for lower income countries to "catch up" to higher-income countries, in terms of growth rates, the growth rate of the lower-income countries must be _____ the growth rate of the higher-income countries.

narrowing, increasing, greater than

the purchase by the canadian government of a fighter jet produced in the United States is included in US a. investment spending b. consumption spending c. government purchases d. net exports

net exports

Do most high-income countries experience the same average level of unemployment? Briefly explain. a. no; the average unemployment rate in the Netherlands, for instance, has been much higher over the pasy ten years than the average unemployment rate in Spain. b. no; the average unemployment rate varies across high-income countries because swings in unemployment are only caused by the business cycle c. no; the average unemployment rate varies significantly across high-income countries because of differences in labor-market prices d. yes; it is common for most high-income countries to experience about the same average level of unemployment

no; the average unemployment rate varies significantly across high-income countries because of differences in labor-market prices

show how nominal GDP and real GDP can be used to calculate a price index?

nominal gdp / real gdp x 100

during recessions, industries such as construction often cut back on employees. the newly unemployed workers may seek jobs for awhile and then become discouraged if they do not find new jobs. if workers have stopped seeking jobs, the BLS counts those workers as a. unemployed b. employed c. not in the labor force

not in the labor force

how is the unemployment rate calculated?

number of unemployed / labor force x 100

What problems might this increased spending pose? The result is a funding crisis that countries can solve by a. reducing government payments to retired workers b. lowering the taxes paid by current workers c. increasing expenditure on all other programs d. all of the above

reducing government payments to retired workers

which of the following is a positive economic statement? a. the Federal Reserve should not increase interest rates until the unemployment rate falls below 7% b. rising global demand for gasoline has led to an increase in the price of oil c. income tax rates for the rich should be increased d. the government should increase spending on infrastructure to lower the unemployment rate

rising global demand for gasoline has led to an increase in the price of oil

other than pooling deposits and making loans, which of the following are the three key services that financial intermediaries perform for savers and borrowers? a. risk sharing, liquidity, and information b. asymmetric information, liquidity, and securitization c. adverse selection, liquidity and risk sharing d. risk sharing, securitization, and market pricing

risk sharing, liquidity, and information

why do you think that the federal reserve prefers to use the core PCE to measure the inflation rate? a. since the CPI is not representative of a typical consumer, the core PCE is a better measure b. since the core PCE is based on a fixed basket, it avoids some of the biases inherent in the CPI c. since the core PCE excludes food and energy prices, it is more stable than the CPI d. since the CPI excludes food and energy prices, it is more volatile than the core PCE

since the core PCE excludes food and energy prices, it is more stable than the CPI

firms are able to expand their operations by acquiring funds from househodls. they can do this directly through financial markets such as ____, or indirectly through financial intermediaries such as ____. a. banks; bond markets b. stock markets; banks c. bond markets; stock markets d. stock markets; bond markets

stock markets; banks

An exogenous variable is ____, while an endogenous variable is _____.

taken as given, explained by the model

which of the following actions is not performed by central banks? a. taking deposits from the public b. collecting and disbursing government funds c. acting as a lender of last resort d. regulating the money supply e. all of the above are functions of a central bank

taking deposits from the public

explain the major difference between the CPI and the PCE deflator a. the PCE is based on a fixed basket of goods, while the CPI is based on the goods actually consumed b. the CPI is based on a fixed basket of goods, while the PCE is based on the goods actually consumed c. the CPI is a chain-type price index, while the PCE uses a market-based approach d. the PCE excludes food and energy prices, but the CPI includes them

the CPI is based on a fixed basket of goods, while the PCE is based on the goods actually consumed

Which of the following is an example of a monetary policy? a. the Federal Reserve takes action to increase the money supply during an economic recession b. the federal government decreases income tax rates on people earning less than $40,000 c. congress authroizes an increase in spending on health care d. the US Bureau of Engraving and Printing redesigns the $20 bill

the Federal Reserve takes action to increase the money supply during an economic recession

which of the following correctly describes how the PCE is calculated? a. the PCE is based on the cost of a market basket of goods relative to its cost in a base year b. the PCE is a market-based approach c. the PCE is calculated like the GDP deflator, except that it includes only the prices of consumption goods d. the PCE is the ratio of real GDP to nominal GDP

the PCE is calculated like the GDP deflator, except that it includes only the prices of consumption goods

What is monetary policy? a. the fractional reserve system that allows banks to expand the money supply through lending b. changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives c. the actions the federal reserve takes to manage the money supply and interest rates d. the regulations that influence trade and taxation throughout the country

the actions the federal reserve takes to manage the money supply and interest rates

In the short run, macroeconomics analysis focuses on ____, while in the long run, the focus is on ____. a. the business cycle; long-run economic growth b. fiscal policy, monetary policy c. short-run economic growth; popualtion demographics d. unemployment; inflation

the business cycle; long-run economic growth

what is the difference between the PCE and the core PCE? a. the PCE excludes food and energy prices, the core PCE does not b. the core PCE excludes food and energy prices c. the PCE is based on imputed prices, and the core PCE is not d. the core PCE is based on imputed values and the PCE is not

the core PCE excludes foods and energy prices

a bank run can lead to a bank panic when a. regulatory agencies force banks to be shut down because depositors have lost faith in them b. the failure of a single bank causes depositors to worry about the solvency of other banks and then more runs occur c. banks do not intend to repay depositors d. regulatory agencies find out that banks have loaned out deposits

the failure of a single bank causes depositors to worry about the solvency of other banks and then more runs occur

what is GDP? a. the sum of al the payments to all domestic and foreign factors of production b. the market value of all final goods and services produced in a country during a period of time, less depreciation indirect business taxes c. the market value of all final goods and services produced in a country during a period of time d. the market value of all goods and services produced by the factors of production of a country in a period of time

the market value of all final goods and services produced in a country during a period of time

a price index is a measure of a. production changes b. the inflation rate c. nominal GDP d. the price level in one year relative to a base year

the price level in one year relative to a base year

an asset bubble occurs when a. the price of an asset rises significantly above the asset's fundamental value b. the economy is expanding rapidly, driving up the price of all goods c. the funadmental price of an asset is too low d. interest rates are too low

the price of an asset rises significantly above the asset's funadmental value

Long-run economic growth is a. the process by which productivity raises the average standard of living b. the expansion of the population over time c. represented by increases in the money supply d. the expansion of nations through colonization

the process by which productivity raises the average standard of living

in what way is GDP both a measure of total production and a measure of total income? a. all income is taxed, so understanding tax income allows economists to find production measures b. the production of every output requires payment to the inputs that produce it c. production and income are always the same thing d. none of the above

the production of every output requires payment to the inputs that produce it

an example of fixed investment spending is a. $4 million in unsold furniture at a home furnishings manufacturer b. the purchase of a new apartment building by a property management company c. the purchase of corporate bonds by Microsoft Corporation d. the purchase of a new wood chipper by a landscape maintenance company

the purchase of a new wood chipper by a landscape maintenance company

the labor force is a. the total number of employed people in an economy b. the percentage of employed people divided by the population c. the sum of the employed and unemployed workers in an economy d. the total number of people in an economy who are over the age of 16

the sum of the employed and unemployed workers in an economy

the demand for loanable funds is determined by a. the amount of reserves made available by the fed b. the value of the stock market c. the government budget deficit d. the willingness of firms to borrow money to engage in new investment projects

the willingness of firms to borrow money to engage in new investment projects

Why are intermediate goods not counted in GDP? a. they are not valuable until they become a part of the final product b. they have no market value c. their values must be imputed d. their values is included in the value of final products

their value is included in the value of final products

both moral hazard and adverse selection problems occur when a. interest rates are high b. inflation is very high c. there are asset bubbles d. there is asymmetric information

there is asymmetric information

In an article in the Economist magazine, a survey on expectations about standards of living yielded the following conclusion: "Half thought the next generation would have a lower standard of living, double the share taht thought living standards would rise" What does this imply about expectations about real GDP growth rates in coming years? a. most people in the survey expect that GDP growth rates will rise in coming years b. uncertain. the article says nothing about GDP growth rates. c. most people in the survey expect that GDP growth rates will fall in coming years. d. uncertain. GDP growth could be falling or the rate of population growth could be increasing faster than GDP

uncertain. GDP growth could be falling or the rate of population growth could be increasing faster tha GDP.

during recessions, industries such as construction often cut back on employees. the newly unemployed workers may seek jobs for awhile and then become discouraged if they do not find new jobs. if workers are seeking jobs, the BLS counts those workers as a. unemployed b. not in the labor force c. employed

unemployed

how is the unemployment rate measured?

unemployed / labor force x 100

What is the difference between normative analysis and positive analysis? Positive analysis is concerned with ____, and normative analysis is concerned with _____. Economics is concerned primarily with ____ analysis.

what is, what ought to be, positive

What is the difference between normative analysis and positive analysis? Positive analysis is concerned with _____ and normative analysis is concerned with ____. Economics is concerned primarily with ____ analysis.

what is; what out to be; positive

GDP measures the production of goods and services ______, and GNP measures the production of goods and services _____. the difference between GDP and GNP for the United States is ______.

within the borders of a country, by factors of production owned by a country's citizens, very small

if the actual inflation rate is greater than the expected inflation rate, lenders will be ____

worse off

Discouraged and marginally attached workers a. are employed but for fewer hours than they would prefer to work b. would like to be employed but are not searching due to job-market related or other reasons c. are out of work and actively seeking employment d. are employed but temporarily laid off

would like to be employed but are not searching due to job-market related or other reasons

which of the following best represents household saving? a. (Y-C-G-NX) b. T-(G+TR) c. (Y+TR) - (C+T) d. (Y-TR) + I

(Y+TR) - (C+T)

which of the following best represents total saving? a.(Y-C-G-NX) b. (Y-TR) + I c. T-(G+TR) d. (Y+TR) - (C+T)

(Y-C-G-NX)

Which of the following correctly represents the relationship between real and nominal interest rates? a. Nominal rate = Real rate - Inflation b. Real rate = Nominal rate + Inflation c. Nominal rate = Real Rate + Inflation d. Real rate = Nominal rate x Inflation

Nominal rate = Real rate + Inflation