Exam 3
Deflation is when the inflation rate turn negative
True
Deflation is when the inflation rate turns negative
True
Demand-pull inflation is usually accompanied by low unemployment and higher real output.
True
Official unemployment rate statistics may
Understate the amount of unemployment because of the presence of "discouraged" workers who are not actively seeking employment
Human capital refers to:
the skills and knowledge that enable a worker to be productive.
Labor productivity is defined as
total output worker hours
The rule of 70 is a formula for determining the approximate number of
years that it would take for a value (like real GDP) to double
Inflation caused by a rise in the prices of inputs is referred to as:
Cost-push inflation
The inflation rate measures the percentage growth of
Real GDP from the base period 1982-84 to given year
A recession is a decline in:
Real GDP that lasts six months or longer
A source of increasing returns to scale in the New Economy is:
Simultaneous consumption
Economic historians identify which item as a major factor that started the Industrial Revolution in Britain?
Steam engine
A mismatch between the geographic location of workers and the location of job openings would result in what type of unemployment?
Structural
Kevin has lost his job in a automobile plant because of the use of robots welding on the assembly fine. Kevin plans to go to technical school to learn how to repair microcomputers. The types o unemployment Kevin in faced with
Structural
Working as an elevator operator used to be a common job in the workforce four decades ago, but today few jobs remain. The unemployment created by the introduction of automatic elevators would be considered:
Structural
A waiter loses a job at a call center because business firms switch the call center to another country is an example of
Structural employment
Unanticipated inflation activity
Taxes those who rececieve fixed money incomes
Inflation is a rise is
The general level of prices over time
The higher the rate of unemployment
The larger in the GDP gap
An antigrowth view would be that there may be a significant tradeoff between productivity and:
The quality of life
The basic determinants of labor inputs (total hours of work) include:
The size of the labor force and average hours of work
If the GDP gap is positive then
Actual GDP is greater that potential GDP
The entry of women into the workforce since the 1960s resulted in:
A shift outward in the production possibilities curve of the United States
The unemployed are those people who:
Are not employed but are seeking work
The inflation rate measures the percentage growth rate of:
CPI from one year to the next
In the expansion phase of a business cycle:
Employment and output increase
A trough in the business cycle occurs when:
Employment and output reach their lowest levels
O kun's law indicated that
Every 1% that the actual unemployment rate exceeds the natural of unemployment rate a 2 % CDP gap is generated.
Cost-push inflation tends to be characterized by all of the following except:
Falling unemployment
An increase in the quantity and quality of natural resources is an example of a demand factor of economic growth.
False
Cost-push inflation increases real output and employment.
False
Proponents of economic growth claim that growth leads to greater equality of income in an economy.
False
In the modern economic growth process it is typical to find that
Follower countries can grow faster than leader countries
Critics of growth policies focus on the following arguments, except:
Growth may have given us the good life, but we cannot better it anymore
Technological advances that contribute to economic growth include the following except
Innovative digital gadget for consumers.
Patents and copyrights foster the flow of:
Inventions and ideas
The natural rate of unemployment
Is equal to the total of frictional and structural unemployment
Negative economic growth can be shown as a:
Leftward shift of the production possibilities curve
In the U.S economic-growth experience
Most capital is complementary to labor
The full-employment rate of unemployment is also called the:
Natural rate of unemployment
Full employment" refers to the situation when there is:
No cyclical unemployment
The rate of unemployment tends to be lowest for
White adult males
A worker would be hurt by least inflation when the
Worker is protected by a cost of living adjustment clause in an employment contract
Economic growth can be portrayed as:
an outward shift of the production possibilities curve.
Real GDP per capita:
can grow either more slowly or more rapidly than real GDP.
Economic growth is best defined as an increase in
either real GDP or real GDP per capita
Economic growth is best defined as an increase in:
either real GDP or real GDP per capita.
In the expansion phase of a business cycle
employment and output increases
Free trade
encourage growth by promoting the rapid spread of new invention and innovations
A competitive market system
encourages growth by allowing producers t make profitable investment decisions based on market signals
The best example rate of frictionally unemployment worker is one who
is in the process of voluntarily switching jobs
Growth advantageous to a nation because it
lessens the burden of scarcity
Proponents of economic growth say that pollution:
occurs, not because of growth, but because common resources are treated as free goods.
The GDP gap measures the amount by which:
potential GDP exceeds actual GDP
A nation's infrastructure refers to
public capital goods such as highway and sanitation system
