Macroeconomics Tonitta White CLC
is income tax services you have completed by hr block included or excluded form gdp
included
Suppose there are 5 million unemployed workers seeking jobs. After a period of time, 1 million of them become discouraged over their job prospects and cease to look for work. As a result of this, all else equal, the official unemployment rate would:
increase
assume resources can be used to make large tires for semi trucks or small tires for automobiles. what effect would the decrease in the price of the large tires have on the supply of auto tires?
increase
if supply decreases and demand is constant how will this change affect equilibrium price
increase
what effect would more sellers of auto tires in the auto industry have on the supply of auto tires?
increase
what happens to demand for small cars if income declines and small autos are an inferior good?
increase
what happens to demand for small cars if the price increases of medium sized cars while prices of small cars remain the same (assume small and medium sized cars are substitutes)
increase
how will an equal increase in sras and agg demand impact ouput level
increase output
how will a decrease in SRAS with no change in agg demand impact equilibrium price level in the short run assuming price level is flexible
increase price
how will a decrease in sras with no change in agg demand impact equilibrium price level in the short run assuming price level is flexible
increase price
what is supply
the maximum amount of product that sellers are willing and able to provide over some period of time at various prices
what is a change in demand
a change in the amounts of the product that would be purchased as a given price
which of the following discretionary policies both restrains the growth of government and helps return the economy to full employment?
a tax cut in a recession
what is gdp
a total market value of all final goods and services produced by resources in a given time
what effects would the following have on agg demand or agg supply? a 10% across the board reduction in personal income tax rates
agg demand increase
what effects would the following have on agg demand or agg supply? a major increase in spending for health care by the federal government
agg demand increase
what effects would the following have on agg demand or agg supply? a reduction in interest rates at each price level
agg demand increase
what effects would the following have on agg demand or agg supply a 12% increase in nominal wages with no change to productivity
agg supply decrease
what effects would the following have on aggregate demand or aggregate supply? a new national tax on producers based on the value added between the costs of the inputs and revenue received from their output
agg supply decrease
what effects would the following have on aggregate demand or aggregate supply? a widespread fear by consumers of an impending economic depression
aggregate demand increase
what is APC
average propensity to consume Consumption / income
what is APS
average propensity to save savings / income
in the circular flow model which resource is paid interest
capital
what is included in the expenditure approach of GDP
consumption investment government spending net exports
which of the following types of unemployment is directly associated with insufficient overall demand for goods and services
cyclical unemployment
i supply decreases and demand is constant how will this impact the equilibrium quantity
decrease
what happens to demand of cars today in consumers anticipate that the price of cars will greatly come down in the near future?
decrease
what impact would the levying of a per unit tax on auto tires sold have on the supply of auto tires?
decrease
how will a decrease in sras with no change in agg demand impact equilibrium output levels
decrease output
suppose the price index is 200 in 2013, 220 in 2014 and 231 in 2015 then in 2015 the economy would be experiencing: deflation disinflation increasing inflation hyper inflation
disinflation
indicate how the following event affects he location of a country's production possibilities curve current resources are underutilized
does not change the curve
Is the monthly allowance a college student receives from home included in GDP?
excluded
is money received by josh when he resells his nearly brand new Honda to kim included or excluded form gdp
excluded
is a vehicle that is produced in 2013 but sold in 2014 included or excluded from 2014 gdp
exluded
is rotating the tires on your neighbors car as a favor included or exluded form gdp
exluded
why does government spending theoretically give a bigger boost to the economy than tax cuts
the multiplier effect is larger for government spending than the multiplier effect for tax cuts because tax cuts have a less direct impact on consumption and output
what is the real gdp in 2014 dollars if the nominal gdp in 2014 is $15,000 billion, the gdp deflator in 2014 is 110 and the gdp deflator in 2010 was 100
$13,636 billion
Business inventories increase when firms produce:
More than they sell, and the inventory increase is added to GDP
what is the law of demand
Price increases / Quantity demand decreases Price decreases / Quantity demand increases
What is demand-pull inflation?
When demand outpaces the economy's ability to produce goods & services.
what happens to the demand curve for: 1. change in quantity demanded 2. change in demand
1. Movement along the curve 2. The curve shifts
what would the be the GDP given the following data government purchase 15 consumption 90 gross investment 20 depreciation 5 exports 8 imports 12
121
assume mpc is .75 what is the multiplier (multiplier = 1 / (1-mpc))
4
Suppose the total population is 200 million workers, 100 million of whom are in the labor force. 80 million people are employed full time and another 16 million are employed part time; 5 million people are "discouraged workers." The unemployment rate is:
4%
Suppose the CPI is currently 126, while its value one year previously it was 120. The rate of inflation over the past year was:
5%
What is cost-push inflation?
A rise in the general price level resulting from an increase in the cost of production
what is a shortage
A situation in which quantity demanded is greater than quantity supplied
what is a surplus
A situation in which quantity supplied is greater than quantity demanded
what are the four stages of the business cycle
peak recession trough expansion
how do you calculate inflation rate
((CPI new - CPI old) / CPI old) X 100
how do you calculate CPI?
(Cost in a given year / cost in a base year) X 100
Assume that Kyle is temporarily unemployed because he has voluntarily quit his job with company A and will begin a better job next week with company B. Kyle will be considered as:
frictionally unemployed
orlando has just finished school and is searching for his first job. Orlando is considered to be
frictionally unemployed
what fluctuates during the business cycle
gdp
which of the following exemplifies the crowding out effect? An increase in government spending:
is financed by borrowing, raising interest rates and causing private investment to fall
What are the 4 factors of production?
land labor capital entrepreneurial ability
indicate if the topic below relates to macro or micro the unemployment rate in the us was 9.7% in march 2010
macro
Indicate if the topic below relates to macro or micro the total output in the us increased by 1%
macroeconomic
indicate if the following characteristic is for a planned or market system: central government makes economic decisions such as what is produced
planned
what is market equalibrum
price at which quantity demanded = quantity supplied
what is MPC
marginal propensity to consume change in savings / change in income
indicate if the following characteristic is for a planned or market economy: what to produce is determined by businesses and consumer
market
indicate if the following characteristic is for a planned or market system: private ownership of resources
market
what in gnp
market value of all goods and services produced domestically and abroad using resources supplies by us citizens
indicate if the topic below relates to macro or micro the sales of coca cola decreased by 5% after an increase in the price of coca cola
micro
what is a change in quantity demanded
movement along the demand curve due to the price of a product changing
what is a change in quantity supplied
movement along the supply curve due to change in price of the product
how will an equal increase in short run agg supply and agg demand impact equilibrium price level assuming price level is flexible
no change in price
in which of these cases would real gdp increase: nominal gdp increased by 8% and there is 10% inflation nominal gpd increased by 5% and there is 5% inflation nominal gpd increased by 3% and there is no inflation nominal gdp decreased by 3% and there is no inflation
nominal gpd increased by 3% and there is no inflation
GDP exclustions
non market goods and services illegal and underground activities secondhand sales financial aid transactions
assume that a person just lost his job and decided t take a month long break to travel to europe before looking for a new position. Just as he returns home from his trip, he is interviewed by the department of labor about his employment status. How should he be classified?
not in the labor force
when output is at capacity and the economy is at full employment where would the economy be in the business cycle
peak
what is a change in supply
shift of the supply curve
indicate how the following event affects he location of a country's production possibilities curve a devastating earthquake destroys numerous production facilities
shifts production possibilities curve inward
indicate how the following event affects he location of a country's production possibilities curve the quality of education increases which results in increased worker skill
shifts production possibilities curve outward
What is the money multiplier?
the amount of money the banking system generates with each dollar of reserves 1 / reserve ratio
what is the rule of 70
used to estimate number of years it would take for some amount of money to double 70 / annual growth percentage = # of years to double
