Econ 1 -- Chapter 21, 22, 23
Real-Time Data Analysis Exercise* The table provides information about three U.S. price indexes for May each year from 2014 to 2020. (1) In the year to May 2020, the inflation rate measured by the CPI was _______% (2) In the year to May 2020, the inflation rate measured by the C-CPI was__________% (3) In the year to May 2020, the inflation rate measured by the PCEPI was_________. (4) In the year to May 2020, the inflation rate measured by the core index—CEless food and fuel —was ________%. (5) The price index with the greatest bias is ______ because ______.
(1) 0.235 [(255.8-255.2)x 100/255.2 ] (2) -0.2 [(143.9 - 144.2)×100 /144.2 =−0.2 ] (3) 0.54 [(110.1-109.5)x 100 / 110.1] (4) 1.0 [(112.5-109.5)x 100 /109.5] (5) the CPI; it isn't based on current period actual expenditure weights
Real-Time Data Analysis Exercise* The table shows the levels of nominal GDP and real GDP for the first quarterfirst quarter of 20202020 (the most recent quarter for which data are available). (1)From the first quarter first quarter of 2019 to the first quarter first quarter of 2020, nominal GDP increased by 2.09 (2)From the first quarter first quarter of 2019 to the first quarter first quarter of 2020, real GDP increased by 2.2% (3)Which had the faster growth rate, nominal GDP or real GDP? (4)Why did real GDP have the faster growth rate?
(1) 2.09 [(21540-21099)x 100 /21099] (2) 2.2 [(17031-16666)x 100 / 16664] (3) real GDP (4)Because prices decreased
(1) The_______ line in the graph is jobs loser, the _________ red line is job leavers, and the ________ line is entrants and re-entrants. (2) ______ are the most cyclical component of unemployment and ______ are the most stable source of frictional unemployment.
(1) blue ; red ; green (2) Job losers; job leavers
Read Eye on Booms and Busts. Explain why the NBER reported that the 2008 recession began before real GDP had fallen for two successive quarters. The NBER Committee _______.
based its decision on peaks in the data on real personal income, real manufacturing, wholesale and retail sales, industrial production, and employment, which all peaked between November 2007 and June 2008 （根据对个人实际收入，实际制造业，批发和零售销售，工业生产和就业的数据峰值的决定，这些峰值在2007年11月至2008年6月之间达到峰值）
Over the past two years, U.S. cyclical unemployment ______ and ________.
changed from negative ; there was an inflationary gap.
When the price level _______ the inflation rate ______. (价格水平_______通货膨胀率_______。)
rises rapidly; is high (迅速崛起; 高)
The economy is at full employment when all unemployment is _______. (当所有失业都______时，经济处于充分就业状态。)
structural and frictional (结构性和摩擦性)
A ______ is a final good and ______ is an intermediate good. (____是最终商品，______是中间商品。)
tank of gasoline bought by you; jet fuel bought by Southwest Airlines. (你买的汽油箱; 西南航空购买的喷气燃料)
If the BLS included all marginally attached workers as being unemployed, the _______ would be ______.
unemployment rate; higher
The CPI measures the average prices paid by _______ for _______. (CPI衡量_______为_______支付的平均价格。)
urban consumers; a fixed basket of consumption goods and services. (城市消费者; 固定篮子的消费品和服务)
The BLS counts Jody as being unemployed if she _______.
wants a job and is willing to take a job but after searching last week cannot find a job.
New home sales appear in the ______ category of the U.S. National Income and Product Accounts. New home sales _______.
investment; increase GDP and the surge in new home sales this year make the increase in GDP greater than the previous year
In which year, 2000 or 2016, was real GDP below potential GDP? How can you tell from the graph to the right? Consider 2000 and 2016. We can tell that real GDP was below potential GDP in _______ because _______.
2016; in 2016 the output gap is negative.
Using BLS data for the CPI in 1982 and 1997, determine which movie had the greater real box office revenues, E.T.: The Extra-Terrestrial, which earned $435 million in 1982 or Titanic, which earned $601 million in 1997. Made in 1982, E.T.: The Extra-Terrestrial, earned $435 million at the box office. Made in 1997, Titanic earned $601 million. The CPI in 1982 is 96.5, and the CPI in 1997 is 160.5. Converting to 1997 dollars, the $435 million that E.T. earned in 1982 was the equivalent of $________million in 1997, so ______had the larger real box office revenues.
723 [(435 x 160.5) / 96.5] ; E.T.
When the CPI increases from 200 in 2016 to 210 in 2017 and the nominal wage rate is constant at $10 an hour, the real wage rate _______.
decreases by 5 percent
The graph shows the labor force participation rate of men in the U.S. labor market between 1970 and 2016. (1) The labor force participation rate of men decreased most during the _______. (2) One of the reasons why this decrease occurred was that _____.
(1) 2000s (2) more men lost their jobs and decided to withdraw from the labor force
Real-Time Data Analysis Exercise* The table shows the levels of consumption expenditure, investment, government expenditure, net exports, and GDP for the first quarterfirst quarter of 20202020 (the most recent quarter for which data are available). Comparing the data for the first quarterfirst quarter of 20202020 with that for the secondsecond quarter of 20112011 in Table 21.1 LOADING... in your textbook, how has GDP changed? Consumption expenditure as a percentage of GDP has _______.
(1)GDP has increased. (2)decreased
Real-Time Data Analysis Exercise* The tables to the right show the unemployment rate and the natural unemployment rate from June 2019 to June 2020, and real GDP, and potential GDP from the first quarter of 2019 to the first quarter of 2020. In June 2020, the U.S. the unemployment rate was ______ the natural unemployment rate and in the first quarter of 2020 the output gap was ______.
above; positive
When using the income approach to measure GDP at market prices, in addition to summing all factor incomes it is necessary to ______. (当使用收入法以市场价格衡量GDP时，除求所有要素收入之和外，还必须______。)
add indirect taxes less subsidies to convert aggregate income from factor cost to market prices (增加间接税减补贴，将总收入从要素成本转换为市场价格)
The expenditure approach to measuring U.S. GDP equals ______. (衡量美国GDP的支出方法等于______。)
all expenditure on final goods and services produced in the United States in a given time period (在给定时间内在美国生产的最终商品和服务的所有支出)
Describe the relationship between the unemployment rate and the natural unemployment rate as the output gap flutuates between being positive and being negative. When the output gap is positive, the unemployment rate ______ the natural unemployment rate. When the output gap is negative, the unemployment rate ______ the natural unemployment rate.
is less than; is greater than
The CPI bias arises from all of the following items except _______. (CPI偏差是由以下所有因素引起的，除了_______。)
the goods and services bought by poor people
The table above shows real GDP and potential GDP for the most recent four quarters. The graph to the right shows the same variables for a longer period. （1）In the graph, real GDP is the blue curve and potential GDP is the black curve. （2）In 2020 comma Upper Q 12020, Q1, U.S. real GDP decreased by $245 billion from the previous quarter. （3）In 2020 comma Upper Q 12020, Q1, the U.S. economy was in ______ because real GDP ______.
（1）Real GDP is the blue curve and potential GDP is the black curve. （2）decreased；245 （ 19222-18977） （3）an expansion; did not decrease for two successive quarters
The table shows the quantities produced and prices in 2015 and 2016 for an island economy which produces only melons and kiwi fruits. The base year is 2016. Calculate real GDP in 2015 and 2016 using the chained-dollar method. In terms of what dollars is each of these two real GDPs measured? (1) Real GDP in 2016 using the chained-dollar method is $_____ (2) Real GDP in 2015 using the chained-dollar method is $______ (3) Real GDP in 2015 and real GDP in 2016 are measured in _________ dollars.
(1) 1596 [(106 x 10)+(67 x 8)] (2) 1343 [1596/1.188(生产的平均百分比增长为18.8％）] (3)2016
Hawaiian Airlines hires 100 workers, plans to add 170 more Hawaiian Airlines will hire more workers as it expands its fleet. The new hirings are a welcome sign for Hawaii's economy, which lost jobs during the year to May 2009 as the state's unemployment rate rose from 4% to 7%. Source: USA Today, August 18, 2009 The labor force was 602,000 in May 2009 and 622,600 in May 2008. Calculate the change in the number unemployed between May 2008 and May 2009. （1）The number unemployed in May 2008 is_______ （2）The number unemployed in May 2009 is________ （3）The change in the number unemployed between May 2008 and May 2009 is_______of _______
(1) 24904 (2)42140 (3) an increase ; 17236
The table shows some banana prices and the CPI for four years. The reference base period is 1982-1984. Calculate the real price of bananas in each year in 1982-1984 dollars and enter your numbers in the table. (2) In which of the four years were bananas the most costly in real terms? (3) In which of the four years were bananas the least costly in real terms?
(1) 39.6 ; 35.24 ; 28.87 ; 25.18 (2) 1981 (3) 2006
The table gives information reported by the Bureau of Labor Statistics for the second quarter ofthe second quarter of 20082008. What is the unemployment rate? What is the labor force participation rate? (1) The unemployment rate is ________
(1) 5.31 [(154294000-146089000)/154294000(失业率=（失业人数除以劳动力）乘以100。)] (2)66.1 [15429400/233410000 (劳动力参与率等于（劳动力除以工作年龄人口）乘以100)]
(1) Between 1949 and 2016, the average unemployment rate was _______. The unemployment rate was _______ average in 1973-1975, 1981-1982, 1990-1991, and 2008-2009. (2) After 1960, the unemployment rate reached its highest level in ______. (3) The unemployment rate was below average in ______.
(1) 5.8 percent; above (2) 1981-1982 and 2008-2009 (3) the 1960s
The table above provides information about the U.S. labor market in June comma June, 2019, May comma May, 2020, and June comma June, 2020. The graph shows the unemployment rate since June comma June, 2015. (1) In June, 2020 the number employed ______ and the number rate ______ (2) Over the year since June, 2019 the number employed _______ and the unemployment rate _________. (3) The change in the unemployment rate over the past year suggests that the U.S. economy ______.
(1) increased; decreases (2) decreased ; increased (3) was in a recession
Read Eye on Box Office Hits. Compare the method used by Box-Office Mojo to calculate real box-office receipts with the method used to calculate the real price of a postage stamp. (1) Box-Office Mojo calculates real box-office receipts by multiplying the movie revenue by the movie tickets sold; the goods and services bought by the average urban consumer_______ and dividing by the _______. (2) The real price of a stamp in current dollars is calculated by multiplying the price of a stamp by the _______ and dividing by the _______. (3) The real variable that Box-Office Mojo is calculating is in terms of _______. The real value of the stamp is calculated in terms of _______.
(1) movie ticket price in the current year; movie ticket price in the year the movie revenue was earned. (2) CPI in the current year; CPI in the year the stamp was purchased (3) movie tickets sold; the goods and services bought by the average urban consumer
Economists look to expand GDP to include the quality of life Robert Kennedy, when seeking the Democratic presidential nomination in 1968, remarked that GDP measures everything except that which makes life worthwhile. Source: The New York Times, September 1, 2008 (1 ) Which items did Robert Kennedy probably think were missing? Robert Kennedy probably thought that _______ were missing from the measure of GDP. 罗伯特·肯尼迪（Robert Kennedy）可能认为_______在GDP衡量标准中不存在。
(1) political freedom and social justice （政治自由与社会正义）
The table shows the prices that Terry paid for some of his expenditures in June and July 2016. Explain and discuss why these prices might have led to commodity substitution or outlet substitution. (1) On the basis of these price observations, commodity substitution and outlet substitution might have occurred when consumers bought more ______ in July because they had become relatively ______ expensive. (2) On the basis of these price observations, commodity substitution and outlet substitution might have occurred when consumers bought less ______ in July because they had become relatively ______ expensive.
(1) steak and bread; less (2) bananas and lettuce; more
Negative interest rates The Federal Reserve has held interest rates close to zero percent for the past seven years. Even with low inflation, "real" interest rates have been negative. Source: San Diego Union Tribune, February 5, 2016 Explain why with a zero interest rate, even low inflation makes the real interest rate negative. Can the real interest rate exceed the nominal interest rate? (1) When the nominal interest rate equals zero, the real interest rate equals _______. (当名义利率等于零时，实际利率等于_______。) (2) The real interest rate exceeds the nominal interest rate when the inflation rate is _______. (当通货膨胀率为_______时，实际利率超过名义利率。)
(1) the negative of the inflation rate (通货膨胀率的负数) (2) negative
The metro areas with the lowest and highest unemployment In December 2015, Ames, Iowa had the lowest unemployment in the United States at 2.2 percent of the workforce. At the other end of the scale was El Centro, California with 19.6 percent of its workforce unemployed. Source: Forbes, February 9, 2016 Fact: the depth of the 2008-2009 recession, the unemployment rate in Ames peaked at 5.7 percent. In El Centro, it peaked at 30.3 percent. Use the information provided to estimate how much of the unemployment in Ames and El Centro in 2009 was cyclical and how much was natural. Explain your assumptions in arriving at your estimates. (1) To estimate the unemployment that is natural, we need to know or make an assumption about _____. (2) Assuming that the economy was at full employment in December 2015, the natural unemployment rate in Ames is______ % and in EI Centro is _____% (3) When unemployment was at its peak level, cyclical unemployment in Ames was _________ % and in El Centro was _______ %
(1) when the economy is at full employment (2) 2.2 ；19.6 (3) 3.5 ; 10.7 [(5.5-2.2)；(30.3-19.6)]
Other information suggests that household production is similar in Canada and the United States and smaller than in China and Russia. The underground economy is larger in Russia and China and a similar proportion of each of these economies. Canadians and Americans enjoy more leisure hours than do the Chinese and Russians. Canada and the United States spend significantly more on the environment than do China and Russia. (1) Based on this information, differences in real GDP per person ______ correctly rank the standard of living in these countries because ______. (2) To accurately assess the relative standard of living in these countries, we need additional information about _____.
(1) do; when other factors that influence the standard of living are similar the differences in real GDP per person are small, but when these other factors are not similar, the differences are huge (2) the value of household production, the underground economy, leisure, and environment differences
The table shows the results of the survey. It shows the items that consumers buy and their prices. The Statistics Bureau fixes the reference base year as 2015. Is there a substitution bias in the CPI that uses the 2015 basket? Explain. (1) A commodity substitution bias _______ when the CPI is calculated in 2016 using the 2015 basket. The reason is that _______.(当使用2015年篮子计算2016年CPI时的商品替代偏差_______。原因是_______。) (2) The CPI that uses the 2015 basket _______ the inflation rate in 2016. (使用2015年篮子的CPI _______ 2016年的通货膨胀率。)
(1) exists; people switch from the relatively more expensive hot dogs to the relatively less expensive burgers. (2) overstates the inflation rate in 2016