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