macroeconomics usa test prep
This is the total amount of goods and services consumers are willing to buy.
Aggregate Demand
the total supply of all the goods and services available in an economy
Aggregate Supply
This refers to the changes in economic activity of a company over the long term.
Business Cycle
This is the person or persons who purchase a good or service.
Buyer
Unemployment that is caused by a downturn in the business cycle
Cyclical Unemployment
This is a general decrease in the level of prices.
Deflation
This a general economic term that refers to prolonged period of economic decline with large numbers of unemployed, shrinking incomes, and general economic hardship.
Depression
This is the increase in the value of the goods and services produced by an economy.
Economic Growth
This is a period of growth in an economy.
Expansion
Unemployment caused by people changing jobs.
Frictional Unemployment
The total value of all the goods and services produced within a country in a given year
Gross Domestic Product
This is the rapid, "out of control" rise in prices, which is different from a general and gradual increase in priced.
Hyperinflation
These are goods that are brought into one country from another.
Imports
Which choice BEST describes what might happen to unemployment rates if retirement ages were raised?
In the short term, unemployment rates would rise drastically.
A rise in the general level of prices.
Inflation
Which of these statements is NOT true of the workforce in the United States today?
It is becoming less mobile.
This is the study of an economy as a whole.
Macroeconomics
Can a nation have a negative GDP?
No, because GDP measures the market value of products and that can't be negative.
the point in a business cycle when production, employment, and wages are at their highest
Peak
This is a decline in a country's GDP for two or more successive quarters. It is usually characterized by a significant decline in economic activity.
Recession
Unemployment that is caused by changes in technology or reduced demand for certain products.
Structural Unemployment
In which situation might GDP (gross domestic product) NOT be an accurate indicator of the health of a country's economy?
The country has suffered a disaster and is receiving financial aid from overseas.
the lowest point in a business cycle; demand, production, and wages are at their lowest level
Trough
This is the lack of jobs for willing workers.
Unemployment
This term refers to the percentage of the civilian workforce who are available for a job but do not have one.
Unemployment Rate
Which of these would deter inflation?
a decrease in the price of securities
In a free-enterprise economy, the LEAST LIKELY effect of economic growth would be
an increase in poverty levels.
inflation is most harmful to
creditors.
If consumers purchase fewer goods and services, then a likely outcome for our economy is
decreasing factory orders.
The federal government uses government spending and tax rates to help control recessions and encourage economic activity. This is called
fiscal policy.
Which term is used to describe a situation where most people who are looking for work are able to find a job?
full employment
If a nation currently has a budget deficit, their income is not covering the cost of running their country and cuts may have to occur for public services and social welfare. If this budget is not revised, what could be a possible result of this situation?
growing deficts and debt
Which of these is an indicator of increased economic growth in a nation?
increased aggregate demand
High inflation could discourage people from taking college classes because
prices for books and tuition would be rising.
If consumers increase their purchases of goods and services, then a likely outcome for our economy is
rising GDP.
Which of these would be counted when calculating the GDP of the United States?
selling price of goods produced in Michigan
While inflation is a rise in the general level of prices, economic growth is a
sustained period during which the nation's total output of goods and services increases.
If a country had a CPI of 104.0 last year and a CPI of 101.0 this year, then
the average prices of goods and services decreased between last year and this year.