Econ Final (Test 2)
the equation for GDP using the expenditure approach is what
GDP= C+I+G+EX-IM
true or false, the GDP of the US exceeded 17 Trillion dollars as of the most recent date
Flase
if congress increases increases GOV spending it is using which policy
fiscal policy
Labor force participation rate: 75% Total population 16 yrs of age and older: 200Mil unemployment rate: 10% what is the labor force
.75X200,000,000=150,000,000
employed: 14000 Unemployed; 3000 not in the labor force: 4000 what is the amount of ppl in the labor force
14000
what year is the GDP delator base year
2009
during the great depression, the unemployment rate rose to what
25%
if the labor force is 50Mil and 48Mil are employed what is the unemployment rate
4%
the Humphrey-Hawkins act formally established a specific unemployment target for the economy of
4%
estimates of the natural rate of unemployment in the US rage from
4% to 6%
in the united sates in February 2014, the highest ethnic unemployment rate was for ________
African- Americans
prices for used automobiles produced in the USA is include in the calculations of which Price Index
CPI
the US state in the midwest with the highest unemployment rate reported in February 2014 is ________
Illinois
Which country has the largest GDP in the world
United States
a farmer buys a new tractor from John Deere to use on her cotton farm. This tractor is include in GDP as
a durable consumption good
in a business cycle, a trough represents the end of what
a recession
the index most widely used to measure inflation is what
consumer price index
what is the single larges expenditure component in GDP
consumption
when calculating GDP, exports are ________ and imports are ____________
exports are added and imports are subtracted
true or false, IL is a right to work state
false
true or false, all economic activities are include in the GDP
false
what can change the quantity of money in the economy
federal reserve
when an economics professor quits their job at a university and starts looking for a better job in another university their are what type of unemployed
frictionally unemployed
Nominal GDP measures the value of all goods and services in what
in current dollars
why is GDP not a perfect measure of social welfare and the society's economic well-being
it does not say anything about the distribution of income, GDP accounting rules do not adjust for production that caused negative externalities, and it does not include all economic activities in the economy
if the labor market becomes more efficient so that the unemployed are more quickly matched with jobs what will happen to the unemployment rate
it will decrease
the February 2014 BLS unemployment rate in the US was reported at
neither 5.5, 6.0, nor 7.1
aggregate behavior is what
neither the behavior of a selected household and firm, the behavior of each individual, nor the behavior of all household and firms together
are discouraged workers considered part of the labor force
no
would the value of a 2008 boat you purchase from a boat dealer in 2013 be counted in the 2013 GDP
no
if the GDP deflator is greater than 100 what does that mean
nominal GDP is greater than the real GDP
a period during which aggregate output rises in known as a(n)
recovery
legalizing all forms of illegal activities would do what to the underground economy and what to the GDP
reduce the size of the underground economy and increase measured GDP
The official BLS labor participation rate fro February, 2014 did what from previous months
remained unchanged
The official BLS unemployment rate for February 2014 did what from the previous month
rose
if auto worker in Ohio loses her job because of the company relocated the plant to another country is what type of unemployment
structural unemployed
the economy is in a recession and the housing market is in a slump. as a result of this, a real estate firms lays off half of its real estate agents, what type of unemployment is this
structural unemployment
the natural rate of unemployment is generally thought of as what
sum of frictional unemployment and structural unemployment
if there is unemployment in the labor market what does it imply
that there is an excess supply of labor
the broadest based price index available is what
the GDP deflator
in which basic market would DVDs be traded
the goods and services market
the trend of the economy is the same as what
the long run growth path of the economy
real GDP is gross domestic product measure in what
the prices of a base year
social security retirement benefit is an example of what type of payment
transfer payment
true or false, contractionary fiscal policy includes rising taxes
true
true or false, during periods of inflation, nominal GDP is always greater than real GDP
true
true or false, macroeconomics is concerned with inflation and deflation, output growth and unemployment
true
true or false, since 2000, the role of the GOV in the US economy, as measured in the components of GDP, has increased more than any other segment
true
true or false, when more people who are not working start looking for jobs, the labor force participation rate increases
true
in the circular flow diagram, the different payments made by firms to households include
wages and profits