eco
the change in business inventories is measured as
GDP minus final sales
the unemployment rate equals
(labor force-employment)/labor force
government policies regarding taxes and expenditures are called
fiscal policy
durning the US recession of 1980-1982 the unemployment rate reached a high of ________
10.7
in the US economy, the inflation rate in 1975 peaked______percent
11.1
the value of what KFC produces in japan is included in the US________ and in the jananese
GNP;GDP
income Mexican citizens earn in the US counts in
Mexican GNP
a transfer payment is
a csh payment made nyu the government to people who do not supply good, services or labor in exchange for the payment
a prolonged and deep recession is called
a depression
the government wants to encourage consumer spending through cutting imcome taxes. this is an example of
a fiscal policy
an example of a transfer payment is
a social security retirement benefit
gross national product is the total market value of
all final goods and services produces by resources owned by a country, regardless of where production takes place
among the fundamental concepts in economics are
all the above
capital gain
an increase in the value of an asset over the price initially paoid for it is a
the diagram that shows the income receives and payments made by each sector of the economy is the
circular flow diagram
the single largest expenditure component in GDP is
consumption
a promissory note issued by corporation when it borrows money is a
corporate bond
dividends are
corporate profits distributed among bondholders
to get the economy out of a slump, Keynes believed that the government should
decrease taxes and/or increase government spending
in the circular flow, firms______ labor and household_____ goods and services
demand;demand
a period durning which aggregated outputs rises is know as
expansion
if output is rising unemployment is falling, the economy MUST be in a
expansion
in the circular flow diagram, hous3ehold demand_____ and supply______
goods and service; services
the total market value of all final goods and services produce within a given period by factors of production located within a country
gross domestic product
the total value of all capital goods newly produces in a given period is
gross investment
the demanders in the goods-and-services market are
household, the government, business , and the rest of the world
a period of very rapid increase in the overall price levelis known as
hyperinflation
suppose the economy suffers a high rate of unemployment. according to Keynesian economists, the government should increase employment by
increasing government spending
an increase in the overall price level is know as
inflation
the styudy of economis
is a wayt of analyzing decision-making processed caised by scarcity
if the central back decreases the money supply, it is conducting
monetary
exports equal
net exports+imports
double counting can be avoided by
not counting the value of intermediate goods in GDP
a framer buys a new tractor from john deere to use on her cotton farm. this tractor is included in GDP as
part of gross private domestic investment
between a peak and trough, the economy goes through a
recession
since 1970, the US economy has experiences five
recessions
unemployment generally______ during recessions and _______during expansions
rises;falls
the term business cycle refers to the
short-term ups and downs in the level of economis activity
according to classical economists, if the quantity of labor demanded exceeds the quantity supplied, there is a
shortage of labor and wages will rise
rapid increases in the price level durning periods of recession or high unemployment are know as
stagflation
the demand for corn has increased in may without any change in supply. eight months later there still has been no change in corn prices. this is an example of a
sticky price
profits earned in the united staes by foreign-owned companies are included in
the US GDP but not GNP
the change in capital stock in a period is equal to
the amount of the capital stock at the beginning of the period plus gross investment minus depreciation
deflation occurs when
the average price level declines
aggregate behavior is
the behavior of all household and firms together
macroecomonis policies became influenced by Keynes theories starting with,
the great depression
compensation of emplyees
the largest imcome component of GDP is
according to Keynes, the level of employment it determined by
the level of aggregate demand for goods services
the trend of the economy is
the long run growth path of the economy
a dividend is
the portion of a corporation profits that the firm pays out each period to its shareholders
which of the following is not a topic studied in Macroeconomics
the price of IBM computers
promissory notes issued by the federal government whenit borrows money are known as
treasury bonds
is has become convertional to classify an economic downtown as a recession when aggregate output declines for
two consecutive quarter
the unemployment rate equal
unemployed/labor force
in the circular flow diagram, the different payment made by firms to households include
wages and profits