ECO 2302 - Osman - 1st Exam

Which of the following is a topic studied in macroeconomics?

GDP

The equation for GDP using the expenditure approach is

GDP = C + I + G + EX - IM

Natural Rate of Unemployment

4-6%

Which of the following is an example of a final good or service?

A computer purchased by Federal Express to track shipments.

Which of the following is a good or service counted in GDP?

A new tire you buy for your personal car.

Cyclical Unemployment -

Actual number of people unemployed

Real GDP =

Base yr Price x Current yr Quantity

Nominal GDP =

Current x Current

Recession -

Economy down for 2 or more quarters

NX (Net Exports) =

Exports - Imports

The value of what Burger King produces in France is included in the US _____________ and in the French ___________

GNP; GDP

I =

Gross Private Domestic INVESTMENT

Labor Force Participation Rate =

Labor Force/Population x 100

Income Mexican citizens earn in the US counts in

Mexican GNP

C =

Personal Consumption Expenditures

Depression -

Prolonged Recession

GDP measured in terms of prices the prices of a fixed, or base, year is

Real GDP

Macroeconomic policies became more influenced by Keynes' theories starting with,

The Great Depression

Which of the following is not counted in the GDP of the US

The profit earned by a restaurant located in the US but owned by a Mexican company.

Which of the following would not be counted in 2016's GDP?

The value of a 2008 boat you purchased from a boat dealer in 2016.

Which of the following is included in both US GDP and GNP?

The value of all cars produced by General Motors in the US.

GNP is the total market value of

all final goods and services produced by resources owned by a country, regardless of where production takes place.

The GDP of the US in 2014 was around was around 17.4 trillion. This means

all of the above

If in a year there is a positive inventory investment, then final sales

are less than GDP

If there is a positive inventory statement then the company

did not sell all of what they produced that year

Government policies regarding taxes and expenditures are called -

fiscal policy

The government wants to encourage consumer spending through cutting income taxes. This is an example of -

fiscal policy

If Samantha quits her job voluntarily and actively searches for other work, then she is considered -

frictionally unemployed

Nominal GDP measures the value of all goods and services

in current dollars

Cheryl graduated from college a month ago, and is now without work. She accepted a job that will start next month. Today, Cheryl is -

in the labor force

The _____________ in unemployment that occurs during recessions and depressions is called _________ unemployment

increase; cyclical

Suppose the economy suffers a high rate of unemployment. According to Keynesian economists, the government should increase employment by -

increasing government spending

According to Classical Economics, the economy -

is self correcting

If the central bank decreases the money supply, it is conducting -

monetary policy

If the GDP deflator is greater than 100, then

nominal GDP is greater than real GDP

Frictional Unemployment -

people in-between jobs

Structural Unemployment -

people out of jobs because their jobs aren't needed anymore because the structure of the countries sectors are changing

If real GDP prices is higher than nominal GDP, then

prices in 2016 are lower than the prices in the base year

Telephone operators who have lost their jobs as a result of computerized switchboards are an example of -

structural unemployment

Profits earned in the US by foreign-owned companies are included in

the US GDP but not GNP

If no foreign companies produce in a country, but many of the country's companies produce abroad, then -

the country's GNP will tend to exceed GDP

Which of the following is NOT counted in the GDP of the US

the wages of a US citizen who works in a foreign country for a foreign firm

GDP Measures -

total spending of everyone in the economy, total income of everyone in the economy, and the value of all output in the economy - ALL OF THE ABOVE

Labor Force =

unemployed + employed

Unemployment Rate =

unemployed/labor force x 100