Macroeconomics: Economic Measurements Test

The equation calculates an annual rate in economics. (final value - initial value)/initial value x 100 What rate does the equation calculate?

inflation rate

Jim lost his job in a car assembly factory to a robot and his skills will no longer be needed. Which terms can be used to describe Jim? Check all that apply.

structurally unemployed unemployed

The aim of the study of macroeconomics is to examine

the behavior of factors affecting the economy.

The circular flow model examines interactions between which two groups?

households and firms

These are the four stages of the business cycle: 1. Depression 2. Prosperity 3. Recession 4. Recovery In which order do these stages occur?

2, 3, 1, 4

This graph shows changes in GDP and the unemployment rate in the United States in recent years. In what year would someone looking for work have had the hardest time finding a job?

2009

This graph shows merchandise export data for the years 2010 through 2012. Which statement most accurately describes the information presented on the graph?

China exported more goods than the United States from 2010 to 2012.

Which statement best describes why a government's actions are important in macroeconomics? Check all that apply.

Government controls industry through policy. Government is both a consumer and a producer. Government can use policy to influence the economy.

Economic interactions involving which of the following would most likely be studied in macroeconomics?

International Monetary Fund policy

This is a graph showing price and total output in the short and long run. According to this graph, how does supply behave in the long run?

Output remains constant.

In microeconomics, what occurs when equilibrium is reached?

Prices are set.

The map shows GDP per capita in the United States for a given year. What conclusion can someone draw from the map?

States with the lowest per capita GDP tend to be in the South.

The graph shows unemployment rates in the United States in recent years. Which statement is the most accurate explanation of the information on the graph?

The United States suffered an economic downturn starting in 2009.

The graph shows data for the years 2010 through 2012. Which might be a better title for this graph?

Total Exports for the United States and China

A long-run equilibrium occurs when long-run aggregate supply and aggregate demand meet. What does having long-run equilibrium indicate about a society?

The society is using all of its resources efficiently.

Which federal agency calculates the Consumer Price Index (CPI)?

US Bureau of Labor Statistics

Which is the best definition of inflation?

a gradual increase in the price of goods and services

Typically, low inflation is a sign of

a healthy economy because it results from a steady rise in demand.

Typically, high inflation is a sign of

a struggling economy because wages cannot keep up with the increase in prices.

Consumers having more money to purchase computers will most likely result in

an increase in prices for computers and computer accessories.

During a recession, what is one way governments try to encourage growth?

by increasing unemployment benefits

This is a graph of the business cycle. Time is measured along the x-axis. What is measured along the y-axis?

economic output

Stagflation occurs when high inflation combines with

high unemployment and a low level of production.

Which best describes what occurs in the product market?

the exchange of goods and services for money

The aggregate is

the total number of goods demanded or supplied.