econ p3

If nominal GDP in 2014 is $20,000 billion while real GDP is $16,000 billion, then the GDP deflator in 2014 is:

125

_____ unemployment includes workers who voluntarily quit their jobs to search for better positions.

Frictional

Which of the following groups benefits from an unanticipated rise in the inflation rate?

homeowners with fixed-rate mortgages

There are 15 million people living in Marketstan, of whom 9 million are working and 1 million are actively looking for work. What is Marketstan's unemployment rate?

10%

An economy has a population of 226,500. Of them, 12,500 are unemployed and actively seeking work, and 35,000 have given up looking for a job. Also, 28,000 people work part-time, and 151,000 people work full-time. This economy's unemployment rate is _______. (Round the percentage to one decimal place; for example, 0.0436 is 4.4%.)

6.5%

After a long recession with high levels of unemployment the economy finally begins to grow again as the unemployment rate begins to return to the natural rate (5%). This is an example of short run economic growth and does not represent an expansion of capabilities.

True

Workers who want to work but have been frustrated by the inability to find work and have stopped searching are known as

discouraged workers

Lexie works Monday to Friday from 4 P.M. to 6 P.M. in the after-school program at a local elementary school. She began looking for a full-time job last week and has already scheduled three job interviews. According to the Bureau of Labor Statistics, Lexie is:

employed

The unemployment rate is defined as the ________ divided by the ________.

number unemployed; number in the labor force

Last year the consumer price index (CPI) was 115 and this year's CPI is 125. The rate of inflation is:

8.7%

Which of the following could create long run growth in the United States?

US businesses take advantage of low interest rates and invest in new capital by building new factories and buying new equipment. The United States wins a legal battle to attain legal rights to the north Atlantic ocean, expanding territory and giving access to oil, mineral and fishery resources previously owned by European nations. Advancements in computing technology make businesses more efficient in all product sectors. All of the above

Jordan Meadows lost his job as an airline pilot and has not been able to find another job as a pilot. Since he is old enough to be eligible for his pension, he decides to retire and devote himself to caring for his elderly parents, According to the Bureau of Labor Statistics, Jordan is:

not in the labor force.

Most economists believe that the consumer price index ______ the rate of inflation.

overstates

If a product becomes obsolete and the workers who produced that product will need additional training to find new jobs, then they are experiencing:

structural unemployment.

San Jacintonistan has a current GDP of $10 trillion and a GDP growth rate of 7%. The United States of Lonestaria has a current GDP of $2.5 trillion and a growth rate of 14%. Using the rule of 70, how many years will it take for the United States of Lonestaria's economy to catch up to the San Jacintonistan economy?

20