eco

the change in business inventories is measured as

GDP minus final sales

the unemployment rate equals

(labor force-employment)/labor force

government policies regarding taxes and expenditures are called

fiscal policy

durning the US recession of 1980-1982 the unemployment rate reached a high of ________

10.7

in the US economy, the inflation rate in 1975 peaked______percent

11.1

the value of what KFC produces in japan is included in the US________ and in the jananese

GNP;GDP

income Mexican citizens earn in the US counts in

Mexican GNP

a transfer payment is

a csh payment made nyu the government to people who do not supply good, services or labor in exchange for the payment

a prolonged and deep recession is called

a depression

the government wants to encourage consumer spending through cutting imcome taxes. this is an example of

a fiscal policy

an example of a transfer payment is

a social security retirement benefit

gross national product is the total market value of

all final goods and services produces by resources owned by a country, regardless of where production takes place

among the fundamental concepts in economics are

all the above

capital gain

an increase in the value of an asset over the price initially paoid for it is a

the diagram that shows the income receives and payments made by each sector of the economy is the

circular flow diagram

the single largest expenditure component in GDP is

consumption

a promissory note issued by corporation when it borrows money is a

corporate bond

dividends are

corporate profits distributed among bondholders

to get the economy out of a slump, Keynes believed that the government should

decrease taxes and/or increase government spending

in the circular flow, firms______ labor and household_____ goods and services

demand;demand

a period durning which aggregated outputs rises is know as

expansion

if output is rising unemployment is falling, the economy MUST be in a

expansion

in the circular flow diagram, hous3ehold demand_____ and supply______

goods and service; services

the total market value of all final goods and services produce within a given period by factors of production located within a country

gross domestic product

the total value of all capital goods newly produces in a given period is

gross investment

the demanders in the goods-and-services market are

household, the government, business , and the rest of the world

a period of very rapid increase in the overall price levelis known as

hyperinflation

suppose the economy suffers a high rate of unemployment. according to Keynesian economists, the government should increase employment by

increasing government spending

an increase in the overall price level is know as

inflation

the styudy of economis

is a wayt of analyzing decision-making processed caised by scarcity

if the central back decreases the money supply, it is conducting

monetary

exports equal

net exports+imports

double counting can be avoided by

not counting the value of intermediate goods in GDP

a framer buys a new tractor from john deere to use on her cotton farm. this tractor is included in GDP as

part of gross private domestic investment

between a peak and trough, the economy goes through a

recession

since 1970, the US economy has experiences five

recessions

unemployment generally______ during recessions and _______during expansions

rises;falls

the term business cycle refers to the

short-term ups and downs in the level of economis activity

according to classical economists, if the quantity of labor demanded exceeds the quantity supplied, there is a

shortage of labor and wages will rise

rapid increases in the price level durning periods of recession or high unemployment are know as

stagflation

the demand for corn has increased in may without any change in supply. eight months later there still has been no change in corn prices. this is an example of a

sticky price

profits earned in the united staes by foreign-owned companies are included in

the US GDP but not GNP

the change in capital stock in a period is equal to

the amount of the capital stock at the beginning of the period plus gross investment minus depreciation

deflation occurs when

the average price level declines

aggregate behavior is

the behavior of all household and firms together

macroecomonis policies became influenced by Keynes theories starting with,

the great depression

compensation of emplyees

the largest imcome component of GDP is

according to Keynes, the level of employment it determined by

the level of aggregate demand for goods services

the trend of the economy is

the long run growth path of the economy

a dividend is

the portion of a corporation profits that the firm pays out each period to its shareholders

which of the following is not a topic studied in Macroeconomics

the price of IBM computers

promissory notes issued by the federal government whenit borrows money are known as

treasury bonds

is has become convertional to classify an economic downtown as a recession when aggregate output declines for

two consecutive quarter

the unemployment rate equal

unemployed/labor force

in the circular flow diagram, the different payment made by firms to households include

wages and profits