Econ Review for 2-4-16 test
Baby boomers are those people born between
1945-1964
To an economist, full employment is reached when the unemployment rate drops below
4.5%
Which is an example of uncertainty caused by economic instability?
A consumer delays a purchase
Which is false?
A healthy economy helps people feel more certain A healthy economy helps the country
Which of the following is not a reason for income inequity?
A manufacturer increases output
What is the implicit GDP price deflator?
A price index that measures price changes in GDP
Which of the following situations could cause aggregate demand curve AD to shift to AD1?
An increase in consumer saving
The benefits of long term economic growth include all of the following except
An increase in land availability
The numbers in the table were calculated by
Dividing GDP by total population
The unemployment rate is not a completely accurate measure of how many people are out of work because it
Doesn't count dropouts
Which of the following statements about economic growth is false?
Economic growth decreases the tax base
Economic growth benefits government by
Enlarging the tax base
GDP=C+I+G+F
F represents the difference between the dollar value of goods sent abroad and goods purchased from abroad
The census is taken every
Five years
The dollar value of all final goods and services and the most comprehensive measure of a country's total production output
GDP
Which of the following events could cause aggregate supply supply curve to shift?
High interest rates
Aggregate demand will increase
If consumers save less and spend more
An index of average level of prices for all goods and services in the economy is the
Implicit GDP price deflator
All of the following are basic sectors of the US economy except
Income sector
The table keeps changes in real GDP from being overstated by adjusting for
Inflation
Real GDP per capita is the preferred measure of economic growth over the long run because
Labor productivity changes over time
According John Maynard Keynes theory of the multiplier accelerator effect, or decline in investment spending will
Lead to a downward spiral of the economy
Decreases in aggregate supply can be caused by
Lower taxes
From the graph you conclude the 1986 had a
Minimum wage with more purchasing power than any other year
A dip in real GDP per capita such as the one shown in the graph could be caused by
Population growth during a recession
The graph compares countries in terms of
Productivity
Based on the graph what percentage of the US population is not in the labor force?
Read graph
In the graph what does the straight diagonal line represent?
Read graph
All of the following are about GDP are true except
Real GDP is the same amount as current GDP
When a construction worker cannot work b/c of a winter snowstorm he is
Seasonally unemployed
The unemployment rate underrates employment conditions for all of the following except?
Some workers are in between jobs for a reason
Economists use numbers such as those in the table as a measure of
Standard of living
Change in technology and changes in consumer tastes can cause
Structural unemployment
What type of unemployment does the cartoon depict?
Technological
A telephone receptionist loses his job when a computerized voice mail system is installed at his office. He is
Technology unemployed
To calculate the inflation rate economists
The change in price level by the beginning price level and multiply it by 100
To construct a price index all of the following are needed except
The current inflation rates the price of market
The Lorenz Curve is used to demonstrate
The degree of income inequality
Which of the following statements about sectors and incomes is false?
The foreign sector receives its incomes from borrowed savings
All of the following are included in GDP except
The income from a garage sale
Unemployment that is directly related to scoring in the business cycle is
cyclical unemployment
Unlike demand side economics, supply side economics
Advocates reduced government involvement in business
According to the demand pull inflation is caused by
All of the above
Which of the following factors affect economic growth?
All of the above
All of the following factors affect population growth except
Demographers
The foreign sector of the economy represents the
Difference between the dollar value of exports and imports
The largest sector of the macro economy is the
Consumer
An index that reports on price changes for about 90,000 goods and services is the
Consumer price index
According to the demand pull theory inflation is caused by
Consumers
All of the following are theories regarding the curve of inflation except
Cost pull
An assembly line worker in an automobile plant is laid off during a recession. She is?
Cynically unemployed
The amount of money the consumer sector of the economy has available for spending the personal income
Disposable personal income?
Economists know it is important to track inflation because
Distorts statistics about overall economic performance
Which of the following is the correct way to calculate GDP?
Divide current GDP by the implicit GDP and multiply by 100
