exam 3

In a closed economy, which of the following componenets of GDP is not included

net exports

a good measure of the standard of living is

real GDP per capita

If nominal GDP is $5 trillion and real GDP is $4 trillion, the GDP deflator is

125 nominal/real (x100)

If nominal GDP is $5 trillion and real GDP is $4 trillion, the GDP deflator is

125

the labor force participation rate equals the a. labor force divided by working-age population x 100 b. labor force divided by total population x 100 c. number of employed divided by the labor force x 100 d. labor force divided by the number of people not in the labor force x 100

(labor force / by working-age population) x 100

according to the rule fo 70 how many years wil it take for real GDP per capita to double when the growth rate of real GDP per capita is 3.5%

20 years

Imagine that you borrow $1,000 for one year and at the end of the year you repay the $1,000 plus $100 of interest. If the inflation rate was 7%, what was the real interest rate you paid?

7 percent

If government purchases are $400 million, taxes are $700 million, and transfers are $200 million, which of the following is true? (G= government purchases, T=taxes, and TR = transfer payments)

The Federal Government budget surplus (public saving) is $100 million

in a closed economy, which of the following equations reflects investment?

Y- C-G

if consumers decide to be more frugal and save more out of their income, then this will cause

a rightward shift in the supply curve for loanable funds (an increase in supply of loanable funds.)

If the number employed is 190 million, the working-age population is 230 million, and the number unemployed is 10 million, then the unemployment rate is

a. 5% how?

The value of what a U.S.-owned McDonald's produces in South Korea is included in the U.S. ________ and the South Korean ________.

a. GNP, GDP

a student who graduate from college but has not found a job would most likely be a. frictionally unemployed b. cyclically unemployed c. seasonally unemployed d. structuraly unemployed

a. frictionally unemployed

which of the following will increase investment spending in the economy, holding everything else constant

an increase in the federal government surplus

suppose that in 2018, all prices in the economy double and that all wages and salaries also double. In 2018 you

are no better off or worse than you were in 2017 as the purchasing power of your salary has remained the same

suppose that in 2018, all the prices in the economy double and that all wages and salaries also double. In 2018 you

are no better off or worse than you were in 2017 as the purchasing power of your salary has remained the same

inflation is measured

as the percentage change in the consumer price index (CPI)

Jack lost his job six months ago, and he's been actively looking for a new job ever since. The BLS would classify Jack as a. out of the labor force b. unemployed c. a discouraged worker d. all of the above

b. unemployed

The period of expansion ends with a ________ and the period of recession ends with a ________.

business cycle peak; business cycle trough

the labor force equals the number of people a. unemployed b. employed c. employed plus unemployed d. in the working age population

c. employed plus unemployed

Investment, as defined by economists, would include the purchase of a a. government bond b. computer by an accounting firm c. corporate bond d.share of stock in exon mobil

computer by an accounting firm

During the expansion phase of the business cycle, which of the following eventually increases? a. production b. income c. employment d. all of the above

d. all of the above

which of the following prices indices comes closets to measuring the cost of living of the typical household? a. GDP deflator b. producer price index c. household price index d. consumer price index

d. consumer price index

which fo the following causes the unemployment rate to understate the true extent of joblessness? a. many full time workers really want to be part time workers b. persons who collect unemployment benefits report themselves to be searching for a job c. discouraged workers are counted as unemployed d. discouraged workers are not counted as unemployed

d. discouraged workers are not counted as unemployed

Real GDP will increase a. only if the price level falls b. if either the price level rises or the quantity of final goods and services produced rises c. only if the price level rises d. . only if the quantity of final goods and services produced rises

d. only if the quantity of final goods and services produced rises

macroeconomist seeks to understand

economic growth, business cycles, and inflation

the lavor force equals the number of people

employed plus unemployed

which of the following is not directly counted in GDP a. government purchases b. consumer goods c. intermediate goods d. investment expenditures

intermediate goods

Public saving in the economy can be increased by

raising taxes

the rate of interest is

the normal interest rate minus the inflation rate

which of the following headlines would be more closely related to what macroeconomists study than what microeconomists study? a. wine prices rise due to last year's forest fires destroying vineyards in California b. new car prices increase in response to the tariffs on steel c. the unemployment rate was 3.4% last month d. the United Auto Workers sign a contract raising wages and benefits 7% over the next 3 years

the unemployment rate was 3.4% last month

Jack lost his job six months ago, and he's been actively looking for a new job ever since. The Bureau of Labor Statistics would classify Jack as

unemployed

nominal GDP is GPD in a given year

valued in the prices of that year

Real GDP is GDP in a given year

valued in the prices of the base year