Macroeconomics Final 1 Questions Review

The expenditure approach values ________ and the income approach values ________.

goods and services at market prices; goods and services at factor prices

Which of the following is a final good or service?

he new economics textbook you are using

If the statistical discrepancy is zero, in order to calculate GDP from the value of net domesticproduct at factor cost, we must add

indirect taxes, subtract subsidies, and add depreciation

The business cycle is defined as

irregular ups and downs in production and jobs.

When the economy is at full employment, the

natural unemployment rate equals the unemployment rate.

Frictional unemployment is the result of

normal labor market turnover (jobs being created and destroyed)

Discouraged workers who are over 16 years old are. . . .

not counted as unemployed and part of the working age population

Philip is a 22-year old who has no job and is available for work, but has not actively looked for work in the past month. The Current Population Survey identifies Philip as __________, _____________ the labor force, and _______________ the working age population

not employed, not part of, not part of

If real GDP is greater than nominal GDP for a particular year, then_________

prices must have fallen between the current year and the base year.

Gross Domestic Product is equal to the market value of all the final goods and services ________ in a given period of time.

produced within a country

The business cycle has two phases

recession and expansion

During a recession the unemployment rate generally ________ and during an expansion the unemployment rate generally ________.

rises; falls

The income approach measures GDP by summing

the incomes paid households for the resources they own

As technology advancements have led to more white collar jobs

the labor force participation rate for women has increased over the last 50 years.

In 2020, real GDP in the United States was below potential GDP. This fact definitely means that

the unemployment rate was above the natural unemployment rate

A business cycle has two turning points, which are the _____ and ______

trough and peak

In order to measure gross domestic product, we can follow

two approaches: the expenditure approach and the income approach

If Brian, age 24, had no job but was available for work and had looked for a job the week before the survey, Brian is classified in the Current Population Survey as . . .

unemployed

A worker is considered part time if the worker

usually works less than 35 hours per week.

Net exports of goods and services are defined as the

value of exports minus the value of imports.

Suppose the working-age population is 500 million, the labor force is 200 million, and the unemployment rate is 15 percent. The number of unemployed people is. . . .

30 million

Suppose the population is 300 million people, the labor force is 200 million, the number of employed is 185 million, and the working age population is 175 million people. What is the unemployment rate.

7.5 percent 200-185 = 15 15/200 = 7.5%

Janae was fired from her job with Microsoft in the 2008-09 recession because Microsoft's salesdipped. Janae's unemployment would be best classified as

cyclical unemployment.

A reduction in unemployment compensation will . . ..

decrease the amount of frictional unemployment

A south sea island produces only coconuts. In 2019, the price of a coconut is $1 and the quantityproduced is $200. In 2020, the price of a coconut is $1.50 and the quantity produced is $250. 2019 is the base year. Real GDP in 2020 is__

$250

Which of the following would be included in Germany's GNP?

- the production of BMWs (made by a German-based company) in South Carolina - the production of BMWs in Germany (BOTH A & C)

Which of the following is TRUE? One way to be classified as employed is by

- working 1 hour a week at a paid job - working 15 or more hours as an unpaid worker in a family business (I and II)

At full employment there is no what kind of unemployment?

cyclical unemployment.

In the United States, a reason for the increase of the labor force participation rate for women is that

More women pursued a college education and received higher wages upon graduation.

Suppose the population of Timmy Town is 1000 people and the working age population is 800. If 200 of these people are unemployed, the unemployment rate in Timmy Town is ....

There is not enough information given - we need to know the labor force

Gross Domestic Product equals

Y = C + I + G + NX

The calculation of GDP excludes the value of

a family member painting the family home

cyclical unemployment is created by what?... . .

a recession.

The working-age population consists of all the people in the population

aged 16 and over who are not in jail, hospital, or an institution or in the U.S. Armed Forces.

Nominal GDP is GDP in a given year

computed with current market values.

Potential GDP is the level of output produced when the unemployment rate is

equal to the natural unemployment rate.

Unemployment benefits in western Europe are more generous than in the United States. As a result, ________ in the United States

frictional unemployment is lower

Jordan recently quit her job as a marketing consultant in Washington, D.C. and is looking for abetter-paying job with an advertising agency in New York. Jordan is considered to b.. . .

frictionally unemployed.

During 2009, General Motors announced that it would close its Saturn facilities in the United States because of the foreign competition it faced. This corporate move

increased structural unemployment.

The labor force is the

number of employed people plus the number of unemployed people.

When the unemployment rate equals the natural unemployment rate, most likely the economy is producing

on the production possibilities frontier.

Which type of unemployment arises when changes in technology or international competition change the skills needed to perform jobs or change the location of jobs?

structural

Juan recently lost his job as a travel agent, which he has had for 20 years, because the demand for his services has fallen over time as more and more people book their vacations online.Unfortunately, Juan has not been able to find a new job because he lacks the skills needed to get hired in other industries where job growth is occurring. Juan is considered to be

structurally unemployed