Econ Final

The key to being counted as unemployed by the Bureau of Labor Statistics is to be:

actively seeking work.

Gross domestic product is a measure of:

an economy's total output.

Which of the following is included in gross private domestic investment?

an increase in business inventories

Which one of the following would NOT lead to higher prices?

an increase in the supply of food

In the national income and product accounts system, the two main approaches to measuring the size of the economy are:

income and expenditures.

What component of GDP includes college tuition?

services

(Figure: Predicting Supply Shifts) The shift from supply curve 1 (St) to supply curve 2 (S_•) might be caused by an increase in:

subsidies.

Without government spending, which of the following equations is true?

Y = C + S

Which of the following pairs is NOT synonymous?

cyclical unemployment and full employment

Cei teris par-ibics , the effect of a decrease in income on a normal good is to shift the:

demand curve to the left, reducing both equilibrium price and output.

Over the past 150 years, the U.S. economy has endured a recession on average about every:

four to five years.

The maximum amount of a product that sellers are willing and able to provide for sale over a particular period at various prices, ceteris paribiis, is called:

supply.

When the government's debt is monetized:

the Federal Reserve buys bonds from the government.

Zach has been laid off from his job as an aircraft worker . He has been actively looking for a job but has had no luck for the past six weeks. According to the Bureau of Labor Statistics, Zach is:

unemployed.

According to the table, the GDP for 2010 was:

14,592.3 billion

(Table) According to the table, the GDP deflator for 2012 is approximately:

50.9.

As a measure of inflation, the media gives more attention to the GDP deflator than the consumer price index.

False

Full employment is defined as zero unemployment.

False

Graphically, a surplus exists below equilibrium.

False

If buyers do not value a specific product, they will pay the asking price immediately.

False

Shortcomings of the national income and product accounts include ignoring nonmarket transactions, such as the value of your labor within your own home (for example, the value of cooking your own dinner).

True

The phases of the business cycle vary in duration and intensity.

True

(Figure: Predicting Demand Shifts 2) What would cause a shift from Di to D•_1

a new study that shows that honey cures cancer

The largest component of national income is:

compensation of employees.

Alfred Marshall is primarily responsible for:

developing the law of supply and demand.

What approach to federal finance would you agree with if you were most concerned with the federal government's pursuit of fostering economic growth, stable prices, and full employment?

functional finance

Which of the following items is NOT included in the GDP defiator?

imported mangoes

Which of the following are examples of automatic stabilizers?

income tax revenues and transfer payments

In 2012, the group with the highest unemployment rate in the United States was:

African Americans.

Which one of the following transactions would be included in the national income and product accounts?

Jaslyn is paid for her work as coordinator at a women's shelter.

During a deflationary period, prices will increase at a decreasing rate.

MLz

__________is the total accumulation of past budget deficits less surpluses.

The budget deficit

Expansionary demand-side fiscal policies increase government spending, increase transfer payments, and reduce taxes.

True

Markets can contain legal or illegal activity conducted by any individual or business.

True

The consumer price index is a cost-of-goods measure, not a true cost-of-living measure.

True

Contractionary fiscal policy:

decreases aggregate demand.

.We should most likely expect a recession if the Leading Economic Index:

falls for three months in a row.

Reducing tax rates can_____aggregate demand and_____aggregate supply.

increase; increase

Which component of GDP includes inventory changes?

investment

People are considered employed if they are: A)unpaid family workers. B)on strike. C)on vacation. D)All of those listed are considered employed.

D)All of those listed are considered employed.

If an increase in income causes a decrease for the demand of a good, then it is a normal good.

False

The supply curve is a graph of the relationship between price and the quantity buyers purchase at that price.

False

The wage rate changes that lead to equilibrium in the labor market are automatic stabilizers.

False

Which equation summarizes the expenditures approach to measuring GDP?

GDP = C + I + G + (X - M)

(Table) According to the table, net exports of goods and services are equal to:GDP Expenditures for 2010

-$505.4 billion.

lf the current year's consumer price index is 214 and last year's consumer price index was 209, then the rate of inflation is:

2.4%.

Karl's Keychain Company produces keychains that sell in its stores for $1 each. On January 1, 2015, the company had inventory of 10,000 keychains. During 2015, the company sold 900,000 keychains. At the end of the business year on December 31, 2015, the company's inventory of keychains was 6,000. How much did Karl's output contribute to GDP in 2015?

896,000

Jennifer did not work during college. She just obtained a bachelor's degree in marketing, and she is now looking for a marketing job in the retail industry. Jennifer is considered:

frictionally unemployed.

Figure: Effects of Contractionary Fiscal Policies) Contractionary fiscal policies could:

move the economy to full employment.