Macro

Which of the following is counted as unemployment by the Bureau of Labor Statistics

1 24 yr old male without a job who is currently available for work, and actively seeking work

If you know inflation will be 4% next year and you want to request a 6 % increase in your real salary, then you should request that your nominal salary increase by

10 %

Real income

Nominal income -------------------- price level

The largest component of U.S GDP is

Personal consumption expenditures

If an increase in the money supply causes spending to increase and this higher spending results in higher prices, the result inflation comes from

The demand side of the economy and its called demand pull inflation

In the national income accounts, the term depreciation refers to

The value of capital that is used up, worn out, or becomes obsolete during the year

which of the following describes an individual that is structurally unemployed

a former production line worker who has been unable to find a job in manufacturing after they were replaced by a robot

Capitol as a factor of production is best represented by

a robot used on the assembly line of an automobile manufacturing facility

Ceteris Paribus

all other things held constant and is used to isolate the relationship between two variables

Markets tend toward equilibrium

if prices are able to fall to clear surpluses and prices are able to rise to clear shortages

the measurement error cause by the existence of discouraged workers

is more significant when the economy is in recession

if the value of imports exceeds the value of exports in a given year, then

next exports are negative and there is a trade deficit

"It is not fair that students have to pay to park on campus" is an example of a:

normative statment

Points inside the PPF

production is inefficient or resources are unemployed

if the cost of producing good Z decreases at the same time good Z becomes more popular, then the graphing model os supply and demand predicts that

the equilibrium quantity of good Z will increase but the equilibrium price of good Z could increase, decrease, or stay the same

Scarcity exists because

there are not enough resources available to satisfy all of society's wants and needs

a person is classified as employed by the Bureau of Labor Statistics if they

worked 25 unpaid hours on a family owned farm held a part time job while searching for a full time job worked as little as 1 hour for pay during a week

frictional unemployment occurs when

workers leave one job to search for another

GDP =

C + I + G + (Exports - imports )

NDP=

C + I + G + (exports - imports) - depreciation

The type of unemployment associated with recessions is

Cyclical

An autoworker that has been laid off because the demand for autos has declined due to economic downturn is considered to be

Cyclically unemployment

Ceteris Paribus, what will happen to the equilibrium price and quantity of orange juice if a winter freeze destroys half of Floridas orange crop

Equilibrium price rises and equilibrium quantity falls

The porpoise of a good theory or model is

Explain real world relationships

Inflation

An increase in the average level of prices of goods and services over time

The purchasing power of a dollar

decreases during inflationary periods

If gross investment spending is greater than depreciation then net investment is

Positive and the economy capital stock is growing

Which of the following would increase measured U.S GDP for 2015

Purchases of U.S made sweatshirts made by Mexican consumers in 2015

if the economy is operating at full employment then

The unemployment rate is equal to the natural rate

Inflation is

regarded as an economic problem because it can have redistributive effects and lead to increased speculation and cause grater uncertainty

In the Production possibilities model, the opportunity cost of a good is

the amount of other goods that must be given up in order to produce it

If the supply of housing is fixed and the demand for housing increases then supply and demand analysis predicts that

the price of housing will rise

The expenditure approach to calculating GDP adds up spending only on final goods and services to

Avoid the problem of double counting

disposable income

Income remaining to a person after all personal taxes have been deducted

GDP divided by the population is called

Per capital GDP

A decrease in the demand for apples leads to

a decrease in both equilibrium price and quantity of apples

When the price of a product is above the equilibrium price and prices are flexible

a surplus exists and price will fall

which of the following would cause a movement from a point inside the PPF to a point on the PPF curve

an increase in efficiency with which resources are used