Macro Test 2
Sam is a musician who is out of work because electronic equipment replaced live musicians. This is an example of:
Structural unemployment
Ryan Black does not work and has not looked for work because of a disability. He is:
not a member of the civilian labor force
Elisa Kilhafer, a housewife in St. Louis, Missouri, who claims on a BLS survey that she is neither gainfully employed nor looking for work, is , according to the BLS
not counted as a member of the civilian labor force
The unemployment rate measures the percentage of:
people in the civilian labor force who are without jobs and actively seeking a job.
According to the expenditure approach, the largest component of GDP is:
personal consumption expenditures
the income that people recieve is called:
personal income
Based on the circular flow model, money flows from households to businesses in:
product markets
The economy is experiencing a recession when:
real GDP declines for at least six months
The period during which real output falls during a business cycle is called:
recession
If a sizable number of workers were switched from full-time to half-time employement, then the official unemployement rate would:
remain unchanged
The economy's natural rate of unemployment consists of:
structural plus frictional unemployment
To reconcile the difference between GDP and national income, we must:
subtract depreciation of capital and indirect business taxes from GDP
Because GDP does not account for improvements in the quality of goods, the GDP calculation:
tends to understate the true value of output in the United States
It is difficult for cyclically unemployed individuals to find jobs because:
the economy is in a recession
Gross domestic product is officially measured by adding together:
the market value of all final goods and services produced within the borders of a nation
If net exports is a negative number then:
we are exporting less than we are importing
the equation for determining real GDP for year X is:
(nominal GDP for year X / GDP chain price index for year X) x 100
Because of transactions which take place in the underground economy, the:
GDP calculation tends to understate the actual value of foods sold in the economy
If exports rise and imports fall, then:
GDP will increase
The sum of payments made to resource owners for the use of their resources is
National Income
A person who has given up seaching for work is called:
a discouraged worker
the four phases of a single business cycle are:
a peak followed by a recession, trough and then a recovery
the phase of the business cycle marked by an expanding level of real GDP employment and inflation is called:
a recovery
Intermediate goods are goods and services used:
as inputs
Brian Vargo, an auto repair mechanic who remains unemployed because he refuses to work for less than $1,000 an hour, is:
considered fractionally unemployed
The expenditure approach for the calculation of GDP includes spending on:
consumption, gross private domestic investment, government spending for goods and services, and net exports.
gross domestic product that is based on existing prices is called:
nominal GDP
The three components of personal consumption expenditures are:
durable goods, nondurable goods, and services
Net domestic product:
equals GDP minus capital depreciation
If Sam Jackson voluntarily quits one job, possesses marketable skills, and expects to find a new job in a few weeks. then Mr. Jackson is considered:
fictionally unemployed
GDP measures the economy's production of:
final goods and services
The GDP gap is the difference between
full-employment real GDP and actual real GDP
The market value of all final goods and services in an economy produced by resources owned by people of that economy is:
gross domestic product
Gross private domestic investment
includes business expenditures on new factories, tools, and machinery
GDP:
is the dollar value of all the final goods and services produced within the borders of a nation
Gross Domestic Product
is the dollar value of all the final goods and services produced within the borders of a nation
