AP Mac Unit 2 Progress Check
Which of the following will happen when the actual inflation rate exceeds the expected inflation rate?
This will harm lenders with fixed-interest rate loans.
Which of the following is classified as a discouraged worker?
Sara has been unable to find a job and abandoned her job search.
Calculate Country X's nominal gross domestic product for 2017 using the expenditures approach.
19 billion dollars
The economy of Fisherland is at full employment for which year in the above diagram?
2015
Which statement is true about the circular flow diagram of an economy?
The market for factors of production connects spending by firms to household income.
Suppose the consumer price index was 100 on January 1st, 2017 and 110 on January 1st, 2018 with no changes in nominal wages. Which of the following is definitely true about the economy between January of 2017 and January of 2018?
The inflation rate was 10 percent.
Which of the following describes a limitation of gross domestic product?
It does not account for the distribution of income in a nation or income inequality.
Jan works a 30-hour week for a minimum wage of $10 an hour. Suppose that last year is the base year for the Consumer Price Index. Which of the following is true about Jan's real wage if at the end of this year the is 125?
Jan's real wage is $8 per hour at the end of the year.
Which of the following describes a difference between nominal gross domestic product and real?
Nominal uses current prices to measure the value of final output, while real uses constant prices.
Which statement is true about the approaches used to measure the value of a nation's gross domestic product?
The expenditure approach to calculating sums consumption spending, investment spending, government spending, and net exports.
Which of the following is the correct calculation of Real Gross Domestic Product?
Real GDP=Nominal GDP/GDP Deflator
Suppose Miguel wants to know the value of real gross domestic product for 2011 in terms of the base year 1984 dollars. In 1984 nominal was $10 billion. In 2011 nominal was $15 billion and the price deflator was 200. Real in 1984 dollars would be equal to which of the following?
$7.5 billion
Which of the following is true about gross domestic product?
Calculations of include the unsold inventories of goods produced within the borders of the country.
Which of the following terms describes a slowdown in the rate of increase in the consumer price index?
Disinflation
Last year, Myron purchased a $10,000 certificate of deposit with a 3% rate of interest from his bank. The government reported that prices, on average, have fallen by 5% during the current year. Which of the following can be concluded as a result of this transaction?
Myron gains, while the bank loses.
Given the labor market data above, what are the labor-force participation rate and the unemployment rate?
The LFPR is 60% and the UR is 10.0%.
As a measure of economic performance, the United States gross domestic product accounts for which of the following?
The cleanup of an oil spill.
The output gap is measured by which of the following?
The difference between actual and potential.
When an economy is at the trough of the business cycle, which of the following is then true about the state of the economy?
There is a recessionary gap.
What type of unemployment describes the situation of factory workers displaced by automation?
Structural
Labor unions negotiated a 3-year contract with employers in the automobile industry. They agreed to a 3 percent per year increase in pay over the 3 years. How would each group be affected by an actual inflation rate of 4% next year?
Workers would be worse off, and the employers would be better off.
