ECN 202 Midterm Review

If the government's revenue is $20M and it spends $40M, the government has _______ at _________. budget surplus; $20M budget deficit; $20M budget deficit; $10M budget surplus; $10M

budget deficit; $20M

If the government's revenue is $60M and it spends $50M, the government has _______ at _________. budget balance budget surplus; $20M budget surplus; $10M budget deficit; $10M

budget surplus; $10M

A forestry worker who is out of work because of the temporarily low demand for wood products associated with a recession is defined as: cyclically unemployed frictionally unemployed underemployed naturally unemployed

cyclically unemployed

If labor productivity has risen faster than real wage in Mauritius in the past two decades, we can conclude that their labor share of income has ________. fluctuated decreased increased been constant

decreased

Since the 1980s until 2008, the labor share of income in most advance economies had ________ which implies that income inequality had _________. increased; increased decreased; increased increased; decreased decreased; decreased

decreased; increased

Since the 1980s, the labor share of income in the U.S. has been ________ which implies that inequality has been __________. decreasing; increasing decreasing; decreasing increasing; decreasing increasing; increasing

decreasing; increasing

If exports equal $400 billion and imports equal $500 billion, this country trade balance is in _______ at _________billion. deficit; $100 surplus; $200 surplus; $100 deficit; $200

deficit; $100

If Poland in 2016 had trade deficit at $3 billion and the private savings was in deficit at $2 billion, we know that the government budget was in ________ at $____ billion. deficit; 1 deficit; 5 surplus; 5 surplus; 1

deficit; 1

In 2014, when the Spanish economy's total taxes were $2 billion and national government spending was $3 billion, the Spanish government budget was in ________ by $________billion. deficit; 1 deficit; 2 surplus; 2 surplus; 1

deficit; 1

In 2017, if the U.S. had net private savings deficit at $4 trillion and trade deficit equaled $6 trillion, we know that the US had net government (public) savings in ___ at $_ trillion. surplus; 2 surplus; 10 deficit; 10 deficit; 2

deficit; 2

If Canada in 2018 had current account deficit at $2 trillion and the private net savings was in surplus at $1 trillion, we know that the government budget was in____________ at $_______ trillion. surplus; 3 deficit; 1 surplus; 1 deficit; 3

deficit; 3

If yesterday $1 equaled 120 yen and today $1 equals 100 yen. This implies that the US dollar has__________ and the Japanese yen has__________. appreciated; depreciated depreciated; depreciated appreciated; appreciated depreciated; appreciated

depreciated; appreciated

From the late 19th century, we have observed a growth _________ between the poor and rich countries across the world. inconclusive convergence divergence steady state

divergence

Microwave ovens and refrigerators are examples of nondurable goods durable goods services physical capital

durable goods

Refer to Table below. The labor force equals 170 million equals 130 million. cannot be determined from this information. equals 150 million.

equals 150 million.

government spending

federal purchases of goods + state and local purchases of goods

From the NY Times article titled "6 Reasons That Pay HasLagged Behind U.S. Job Growth", which one is NOT among the reason that pay has lagged behind job growth? financialization automation declining unionization lagging minimum wage

financialization

Deposits and withdrawal are examples of ________. stocks flows none is correct

flows

A welder who quits his job and moves from Pittsburgh to Madison to try to get a better welding job is said to be: cyclically unemployed underemployed structurally unemployed frictionally unemployed

frictionally unemployed

In 2016, the German GDP was $8 trillion. If consumption and investment spending were the same as last year (see the previous question) and trade surplus decreased by $1 trillion from the previous year, we can imply that ____________in 2016. exports decreased by $1 trillion government spending increased by $1 trillion exports increased by $1 trillion government spending decreased by $1 trillion

government spending increased by $1 trillion

Which one is NOT among the causes of domestic deficit (trade deficit)? too much investment deindustrialization too little saving high manufacturing exports

high manufacturing exports

Technological unemployment is when an adoption of new technology leads to ____________ but results in negative employment growth. higher labor productivity higher real GDP lower real GDP lower labor productivity

higher labor productivity

GDP PPP-adjusted for developing countries should be ______their unadjusted GDP. higher than lower than equal to none is correct

higher than

To guarantee an increase of real GDP growth, nominal GDP growth must be ________ inflation. lower than higher than equal to non is correct

higher than

Consumption is the purchase of goods and services by: households. foreign buyers. government. business firms.

households

According to the article "Okun's Law and the Unemployment Surpriseof 2009", it discussed the surprise unemployment rate in 2009. While the real GDP growth was flat in 2009, the unemployment rate ________. increased by 1.5 percentage points, which follows the 2-to-1 rule. increased by 1.5 percentage points, which contradicts the 2-to-1 rule. increased by 3 percentage points, which follows the 2-to-1 rule. increased by 3 percentage points, which contradicts the 2-to-1 rule.

increased by 3 percentage points, which contradicts the 2-to-1 rule.

When the US dollar is appreciated, this implies that we may see inflation ________ in developing countries, ceteris paribus. follows the US inflation decreases increases None is correct

increases

The annualized growth rate should not be applied when the economy ____________ because you may see the overstated negative growth level. has a high GDP number runs at a normal level. has low unemployment rate is hit by the economic recession.

is hit by the economic recession.

Karen chooses to go to university fulltime rather than to work. Karen: is part of the labor force and what economists call a discouraged worker. is not part of the labor force. is part of the labor force, but not actively seeking work. is considered employed.

is not part of the labor force.

According to the paper this week by Mary Daly and her team, the black-white wage gap has become _________ since 1979 for both men and women. larger smaller constant none is correct

larger

From the two questions above, we can conclude that South Korea has been the net ________ to the world. borrower lender none is correct

lender

Higher inflation suffers the _________households more than the others because the higher cost of food and gas considers to be a larger portion of their monthly expenditure. low-income high-income middle-income None is correct

low-income

To alleviate global imbalances, the surplus countries (e.g. China, Germany, Japan) should ___________. All are correct reindustrialize and exports more make more domestic investment consume less and save more

make more domestic investment

For economic development, industrialization or modernization is about the development of _____________ sector. agriculture manufacturing service financial

manufacturing

In the U.S., labor force participation had increased before 2000 mainly because __________. more men have joined the labor force. deindustrialization more women have joined the labor force. globalization of production

more women have joined the labor force.

From the two examples above, it implies that the U.S. was the _________ and China was the __________ to the rest of the world. net lender; net lender net borrower; net lender net lender; net borrower net borrower; net borrower

net borrower; net lender

If the CPI is greater than 100, then nominal GDP equals real GDP. nominal GDP is lower than real GDP. nominal GDP is greater than real GDP. prices decreased by more than half between the current and the base years.

nominal GDP is greater than real GDP.

Economists use PPP adjustment for income across countries because _________. non-tradable goods and services are cheaper in rich countries. exportable manufacturing is more expensive in rich countries. exportable manufacturing is cheaper in rich countries. non-tradable goods and services are more expensive in rich countries.

non-tradable goods and services are more expensive in rich countries.

Food and beverages are examples of nondurable goods physical capital durable goods services

nondurable goods

gross private domestic investment

nonresidential investment + residential investment + change in business inventories

Katherine has been thinking about looking for work in the past four weeks, but there was no specific effort she has made. Katherine is counted as _________. not in active population. employed not in labor force unemployed

not in labor force

The Bureau of Labor Statistics treat discouraged workers as ... unemployed part of the labor force. not part of the labor force. frictionally unemployed.

not part of the labor force.

Gini coefficient is used to measure income or wealth inequality. When the Gini coefficient equals 1 (or 100), we say that it is a _________. perfect inequality perfect equality None is correct

perfect inequality

In China, since 2008, labor share of income has increased. This implies that inequality in China has _________. increased reduced been constant none is correct

reduced

To alleviate global imbalances, the deficit countries (e.g. U.S. and U.K.) should ___________. reindustrialize and exports more consume more and save less try to import more make more domestic investment

reindustrialize and exports more

Which one is the example of a stock variable? savings deposits investment income

savings

If we want to measure the relative importance of economic sector, which numbers that we should NOT look at? sectoral output share sectoral employment share none is correct sectoral depreciation share

sectoral depreciation share

Manicures and pedicures are examples of physical capital durable goods services nondurable goods

services

In the U.S. since the 1980s, real wages have increased _________ labor productivity, which caused the decline in the labor share of income. equal to none is correct faster than slower than

slower than

gross domestic product

sum of all GDP components

If South Korea in 2019 had trade surplus at $10 billion and the government budget was in deficit at $3 billion, we know that the net private savings were in _______ at $_____billion. surplus; 7 deficit; 13 surplus; 13 deficit; 7

surplus; 13

In 2017, if China had a surplus in net domestic savings at $2 trillion, it can imply that China had its trade balance in _________ at $___________trillion. deficit; 0 deficit; 2 surplus; 2 surplus; 0

surplus; 2

If South Korea in 2016 had trade surplus at $5 billion and the government budget was in surplus at $1 billion, we know that the net private savings were in _______ at $_____billion. deficit;6 surplus; 6 surplus; 4 deficit; 4

surplus; 4

In the U.S. 2015, __________ sector is the largest economic sector contributing 79% of total GDP. agricultural industrial tertiary none is correct

tertiary

Real estate and renting is considered as __________. secondary sectors tertiary sectors none is correct primary sectors

tertiary sectors

Investment (I) includes: the amount spent on purchases of art. the amount spent on new factories and machinery. the amount spent on consumer goods that last more than one year. the amount spent on stocks and bonds.

the amount spent on new factories and machinery.

According to the bar graph below from the paper by Mary Daly and her team, which one is true? the earnings gap has been highest in 1992-2004 regardless of educational attainment. the higher educational attainment, the smaller wage gap for men. the earnings gap is higher in women. the earnings gap has been highest in 2005-2016 regardless of educational attainment.

the earnings gap has been highest in 2005-2016 regardless of educational attainment.

Inflation is an increase in the price of one item. the average income level. the overall price level. real gross national product

the overall price level.

Which one is NOT among the causes of domestic surplus (trade surplus)? too much saving too much consumption strong manufacturing exports too little investment

too much consumption

Susan reported that 3 weeks ago she applied for jobs at a bank and at a mortgage lending company. She currently is waiting to hear back from both businesses. Susan is considered to be ________. unemployed not in labor force employed not in population

unemployed

Diane lost her job and immediately started looking for another job. As a result the unemployment rate remains constant. labor force increases. labor force decreases. unemployment rate increases.

unemployment rate increases.

The Okun's Law states that when the real GDP growth is decreasing, unemployment goes __. up constant down none is correct

up

From the NY Times article titled "6 Reasons That Pay HasLagged Behind U.S. Job Growth", the article tries to explain that why __________. wage growth has been sluggish in the past couple decades. productivity growth has been impressive in the past few years. wage growth has been higher than productivity growth. none is correct

wage growth has been sluggish in the past couple decades.

Discouraged workers are people ... who believe they are underpaid. who work part time but would prefer a full time job. who dislike their current job. who want employment but have given up looking for a job.

who want employment but have given up looking for a job.

During the pandemic recession, ___________unemployment was higher because they dominate the _________ sector, which has been hit harder by the pandemic. men; construction women; construction men; service women; service

women; service

Construction is considered as _________. Agriculture Services None is correct Industry

Industry

Which one is NOT among the reasons that deindustrialization is causing a serious trouble for the U.S. economy and society? Some manufacturing is deeply related to national security. Some services create more instability and inequality in the economy. It exacerbates gender inequality in the U.S. Knowledge economy is biased against high-school graduates.

It exacerbates gender inequality in the U.S.

Imagine a consumer purchased a new computer for $1,000. The computer was produced in China and imported to the United States. What is the impact on U.S. GDP? $1,000 $0 $500 -$1000

$0

Imagine a firm exported $1,000 in parts to a computer producer in China. What is the impact on U.S. GDP? $700 $0 $1000 $1300

$1000

Between 2015 and 2016, if your nominal wages decreased by 2% and deflation was 1%, this implies that your real wages changed by _____%. -3 3 -1 1

-1

If the US nominal GDP growth was 5% and inflation was 6%, the real GDP growth equals __________% +1 +2 -2 -1

-1

If the US real GDP growth is 2% and the nominal GDP growth is 1%, inflation is ________%. -2 1 -1 2

-1

If the real GDP growth last year was 2% and population increased 4%, the real GDP per capita changed by __% -2 1 -1 2

-2

If the real GDP per capita growth last year was 1% and the real GDP decreased 1%, we can know that population changed by __% -1 -2 1 2

-2

Between 2016-2017, the US economy experienced 2% employment growth and -1% real GDP growth. It implies that labor productivity growth was __________%. 3 -1 -3 1

-3

In 2015, Argentina's GDP was $600 billion. In 2016, Argentina's GDP was $550 billion. What was the GDP growth rate between 2015-2016? 8.33% 9.09% -9.09% -8.33%

-8.33%

In 2017, Mexico's labor productivity growth was 2%. If employment growth was -2%, we know that their real GDP growth must equal to ________%. 4 0 2 -2

0

If 120 yen equals $1, this implies that 1 yen equals $___________. 0.08 1 0.008 120

0.008

In Vietnam, if wage share equals to 0.65, we know that the profit share equals ________. 0.65 1 0.35 -0.65

0.35

Suppose that everyone who has looked for a job for more than six months gave up in despair and stopped looking. What would happen to the official unemployment rate (u3)? It would fall It would increase It would change, but the effect cannot be predicted. It would not change

It would fall

When the US dollar has appreciated against the Japanese yen, what will happen is ____________. Japanese yen will appreciate against other currencies US can export more to Japan Japanese imports to the US will be cheaper Japanese can import more from the US

Japanese imports to the US will be cheaper

Which factor does NOT contribute to the popularity of NIPA and GDP after the WWII? Stagflation in the 1970s Cold War politics The Great Depression The rise of nation state

Stagflation in the 1970s

In the U.S., population growth is around 1% every year. Which rate of real GDP growth that cannot increase a standard of living (real GDP per person) of the U.S. population? 2.5% 0.8% 1.2% 1.5%

0.8%

Between 2016 and 2017, if your real wages decreased by 2% and inflation was 3%, this implies that your nominal wages changed by _____%. 5 -1 1 3

1

In Canada during 2013-2014, the researchers found that the real GDP per capita growth was 3%, the population growth was 1%, the nominal GDP growth was 5%, and the nominal wage growth was 3%. What was the inflation rate in Canada during 2013-2014? -1% -2% 1% 2%

1%

In 2016, labor productivity growth was 2% and real GDP growth was 5%. In 2017, an adoption of 5G internet increases labor productivity. Suppose real GDP growth was still at 5%, technological unemployment took place when labor productivity increased to _______. 4.5% 3% 4% 6%

6%

Suppose that the Okun's Law for Mexico between 1960-2019. We find the equation that GDP growth = -1.5(change in u) + 3 Change in u = -0.67(GDP growth - 3) If the government wants to decrease unemployment rate by 2%, how much of GDP growth that the Mexican government needs to find ways to achieve? 6% 9% 3% 4.5%

6%

We found that the values of Italian GDP components (in billion of dollars) are the following. What should be the value of Imports? 3 7 9 11

7

The CPI in year 2 is 110 and CPI in year 3 is 118. The rate of inflation between years 2 and 3 is 18%. 8%. 4.55%. 7.27%.

7.27%.

In 1995, the US GDP was $10 trillion in Jan and $10.5 trillion in Feb. What was the annualized growth rate? 5.62% 89.58% 79.59% 60%

79.59%

If the unemployment rate is 8 percent, then this means: 8 percent of the population is unemployed. the number of unemployed persons equals 8 percent of the employed persons. 8 percent of the labor force is unemployed. 8 percent of the population age over sixteen is unemployed.

8 percent of the labor force is unemployed.

If the labor force is 320,000 and the total population 16 years of age or older is 400,000, the labor-force participation rate is 80% 72% 76% 88%

80%

Which of the following is an example of a final good or service? lumber purchased by a construction company to used in building houses wheat a bakery purchases to make bread coffee beans Starbucks purchases to make coffee a computer purchased by Federal Express to track shipments

a computer purchased by Federal Express to track shipments

Consumption expenditures=

Durable goods + services + nondurable goods

net exports

Export - Import

Which one is the example of a flow variable? savings wealth GDP inventory

GDP

Which one is NOT the advantage of GDP? GDP helps us to understand better what happened during the 1930s Great Depression. GDP can include both market and non-market activities. GDP allows us to compare the health of economy between countries. GDP helps policymakers to design the good policy package.

GDP can include both market and non-market activities.

Which one is NOT a shortcoming of GDP? GDP cannot capture a change in a quality of the product. GDP recognizes the underground economy. GDP cannot separate between residential and nonresidential investment. GDP includes some 'bad' economic activities such as deforestation.

GDP cannot separate between residential and nonresidential investment

Which country is NOT among Anglophone countries that are the main driver of global trade deficits? U.S. Canada U.K. Germany

Germany

Which one is NOT the cause of falling labor income share? The adoption of more machines in factories declining labor protection Superstar firms The COVID-19 Pandemic

The COVID-19 Pandemic

Which one is NOT among the reasons that deindustrialization is causing no problem for the U.S. economy and society? Developing countries enjoy more opportunities of industrialization. The U.S. can depend more on consumption and imports The U.S. specializes more in production design than making things The economy just transforms into the knowledge economy

The U.S. can depend more on consumption and imports

How is the value-added approach to measuring GDP calculated? The sum of the selling price and profits The sum of the selling price and the value of wages The difference between income and saving The sum of the cost of raw materials and how much market value is added at each stage of production

The sum of the cost of raw materials and how much market value is added at each stage of production

Okun's Law posits a relationship between which two variables? The interest rate and inflation The interest rate and real GDP The unemployment and real GDP The unemployment and inflation

The unemployment and real GDP

In 2015, Argentina's GDP was $600 billion. If its population size was 40 million. Argentina's GDP per capita equals to $__________. 1/15 15 20000 15000

15000

Four countries have the following values of Gini coefficients. Which country is the most unequal society? 31.5 28.4 46.8 42.5

46.8

If the accounting identity has 6 variables, we can know the value of the unknown variable if we know the values of ___________ variables. 4 5 2 3

5

In 2015, the median earning (nominal income) equals $60,000. The CPI (base on 2005 price) equals 120. The real income equals $__________. 50000 55000 72000 60000

50000

Two years ago the state of Vermont GDP was $3 billion and the state employed 60,000 people, Vermont's labor productivity equals $___________. 70000 60000 50000 80000

50000

In 2016, the median earning (nominal income) equals $70,000. The CPI (base on 2005 price) equals 130. The real income equals $__________. 91000 53846.15 78477.36 68789.85

53846.15

According to the Fisher equation, when I borrow from Well Fargo in which I pay 7% annual interest rate, the real interest rate is _______% when inflation this year is 1%. 4 8 6 7

6

Suppose that in 2014 Compensation of Employees from gross domestic income (GDI) equals $9,500 billions. And gross domestic product (GDP) equals 18,900 billions. We can imply that the labor share of income in 2014 equals _________%. 9400 49.74 50.26 1.99

50.26

Imagine a consumer purchased a new computer for $1,000. The computer was assembled in the United States, but $300 in imported parts were used in its production. What is the impact on U.S. GDP? $1300 $700 $1000 $0

$700

Suppose the U.S. Bureau of Labor Statistics classifies 135 million people as employed and the unemployment rate is 10%. How many people are in the labor force in this example? 148.5 million 165 million 140 million 150 million

150 million

Suppose GDP per capita of Chile increased by 4% between 2012-2013 and the GDP per capita number equals to 12,000 in 2013. What is the GDP per capita in Chile in 2012? 11538.46 13987.42 10879.89 14763.22

11538.46

If nominal GDP in 2001 is $18 trillion and real GDP is $15 trillion, CPI in 2001 is 120 110 100 150

120

If your monthly salary in 2018 was $1800 and the CPI (base year is 2010) was 150, your real salary (in terms of 2010 dollars) equals to $__________. 400 1200 1500 500

1200

Refer to Table. The total number of people employed is 153 million 180 million 135 million 117 million

135 million

Refer to Table. The total number of people unemployed is 15 million 20 million 17 million 13 million

15 million

According to the Rule of 72, how many years does it take for a country to double its size if it grows at 4% per year? 12 20 12 18

18

The U.S. experienced industrialization from the 19th century to the late _________ before it began to deindustrialize. 1960s 1940s 2000s 1980s

1960s

Between 2010-2011, we found that real wage growth was 2% while nominal wage growth was 4%, we can imply that the inflation rate was ________%. -2 6 -6 2

2

In 2014, when the Spanish economy's private saving was $4 billion and national gross investment was $2 billion, the Spanish economy's net private saving was $________billion. -2 4 6 2

2

In this economy where there are only households and firms, the total money spent on all production equals to $15M. If the business needs to split their income to employees, landlords, and their profit. Suppose that the business received profit $6M and rents paid to landlords equal to $7M, employees' wages equal to $_____M. 9 15 2 5

2

According to the article "Okun's Law and the Unemployment Surpriseof 2009", it discussed the relationship between output and unemployment is roughly two to one. From this rule, when real GDP fell below its trend by 4%, we will see a ______ increase in the unemployment rate. 8% 1% 0.5% 2%

2%

In Canada during 2013-2014, the researchers found that the real GDP per capita growth was 3%, the population growth was 1%, the nominal GDP growth was 5%, and the nominal wage growth was 3%. What was the real wage growth in Canada during 2013-2014? 1% -2% -1% 2%

2%

In this economy where there are only households and firms, if the total money spent on goods equals to $500, the total income equals to $_______. 500 400 1000 200

500

If the Fed increases the interest by 50 basis points, the interest rate increases from 2.25% to _________%. 2.3 52.25 7.25 2.75

2.75

If the Chinese Nominal GDP in 1980 is $4 billion and CPI (the base year is 2000) is 20. The real Chinese GDP equals to $___________ billion. 20 5 10 1

20

When GDP growth increases from 5% to 6%, it increases by _________. 3 per cent 20 percentage point 20 per cent 1 per cent

20 per cent

If nominal GDP in 2001 is $18 trillion and real GDP is $15 trillion. Suppose we use 2000 as the base year, what is the inflation rate between 2000 and 2001? 50% 25% 20% 5%

20%

If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals: 32% 20% 8% 25%

25%

Between 2000-2002, GDP per capita of Spain grew at 2% per year. If GDP per capita equals to $25,000 in 2000, GDP per capita in Spain equals to $................... in 2002. 26010 27000 25500 26000

26010

In 2015, the German GDP was $8 trillion, consumption spending was $2 trillion, final government spending was $1 trillion, investment was $3 trillion and imports were $1 trillion. The trade balance of Germany in 2015 was $_______ trillion _________. 2; surplus 2; deficits 4; surplus 3; deficits

2; surplus

In 2015, the German GDP was $8 trillion, consumption spending was $2 trillion, final government spending was $1 trillion, investment was $3 trillion and imports were $1 trillion. The value of German exports in 2015 was $_______trillion. 3 4 2 1

3

In this economy where there are only households and firms, the total money spent on all production equals to $10M. If the business needs to split their income to employees, landlords, and their profit. Suppose that wages paid to employees equal to $4M and rents paid to landlords equal to $3M, the business receives profit equals to $_____M. 3 5 4 2

3

When GDP growth increases from 5% to 8%, it increases by _________. 60 percentage points 3 percentage points 40 per cent 3 per cent

3 percentage points

Suppose that the Okun's Law for Mexico between 1960-2019. We find the equation that GDP growth = -1.5(change in u) + 3 Change in u = -0.67(GDP growth - 3) what is the GDP growth rate that can make the unemployment rate stable in Mexico? 2% 1.5% 0.67% 3%

3%

If the number of people classified as unemployed is 20,000 and the number of people classified as employed is 620,000, what is the unemployment rate? 632% 10.6% 1.6% 3.1%

3.1%

According to the Rule of 70, how many years does it take for a country to double its size if it grows at 2% per year? 9 72 35 18

35

Between 2016-2017, the US economy experienced 1% decrease in labor productivity and 3% increase in real GDP. It implies that employment growth was __________%. 2 -4 4 -2

4

The Italian economy in 2005 had the GDP components as the following. What should be the value of their imports (in billions of dollars) ? 5 4 2 8

4

We found that the values of Mexican GDP components (in billion) are the following. What should be the value of consumption in billion of dollars? 1 2 3 4

4

In Canada during 2013-2014, the researchers found that the real GDP per capita growth was 3%, the population growth was 1%, the nominal GDP growth was 5%, and the nominal wage growth was 3%. What was the real GDP growth in Canada during 2013-2014? 1% 2% 4% 3%

4%

If the Chinese Nominal GDP in 2007 is $60 billion and the CPI (the base year is 2000) is 150. The real Chinese GDP equals to $__________ billion. 40 90 60 50

40

Suppose the the total income can be separated into the income for labor and the income for capital. In 2007, we know that the U.S. labor income share was 55%, it can imply that the U.S. capital income share was _% 45 100 1 55

45

Suppose that the Okun's Law for Mexico between 1960-2019. We find the equation that GDP growth = -1.5(change in u) + 3 Change in u = -0.67(GDP growth - 3) If the government wants to decrease unemployment rate by 4%, how much of GDP growth that the Mexican government needs to find ways to achieve? 4.5% 9% 6% 3%

9%

Which one does NOT cause the US dollars to be appreciated or stronger against other currencies right away? Contractionary monetary policy Demand for US exports increase Global economic downturn A decrease in the interest rate in the US

A decrease in the interest rate in the US

With global imbalances, which situation that could make the global economy stop working? The pandemic hit the U.S. Big earthquake in China War in Europe All are correct

All are correct

Which country is NOT among countries that are the main driver of global trade surplus? Japan Germany South Korea Australia

Australia

The correct formula to calculate GDP based on its spending components is: Consumption + Investment + Government Spending + Exports - Imports Consumption + Investment + Government Spending Consumption + Government Spending + Exports - Imports Consumption + Investment + Government Spending + Exports + Imports

Consumption + Investment + Government Spending + Exports - Imports

Which of the following is NOT a GDP expenditure category? Business spending on new technology (T) Government purchases (G) Personal consumption expenditures (C) Gross private investment (I)

Business spending on new technology (T)

When the British pound has depreciated against the Chinese yuan, what will happen is ____________. Chinese yean will appreciate against other currencies China's exports will be cheaper for the British China can import more from Britain as the price is cheaper British imports to China will be more expensive

China can import more from Britain as the price is cheaper

What does "gender earnings gap" mean? On average, men earn less in their jobs than women do. On average, women earn less in their jobs than men do. Due to inflation, the earnings of employed women and men are unequal. Typically, half of all employed women earn less than the median wage.

On average, women earn less in their jobs than men do.

In developing countries or low-income countries, we always see that __________is relatively larger than in rich countries. agriculture industrial sector tertiary sector none is correct

agriculture

Which one is considered the negative consequence that Detroit has experienced after the period of deindustrialization? Increasing homicides Increasing poverty Increasing racial inequality All are correct

all are correct

If labor productivity has risen at the same rate as real wage in England in the past two decades, we can conclude that their labor share of income has ________. increased been constant decreased fluctuated

been constant

In 2016, from the information in the previous question, Poland was a net ________ to the rest of the world. borrower lender none is correct

borrower

According to the Fisher equation, higher inflation benefits the _________ and hurts the __________, ceteris paribus. lender; lender borrower; borrower borrower, lender lender; borrower

borrower, lender

Trade deficit means Net exports are positive Exports higher than imports Imports higher than exports. Net exports are zero.

imports higher than exports.

Nominal GDP measures the value of all goods and services in fixed dollars. in current dollars. without inflation in constant dollars.

in current dollars.

Real GDP is gross domestic product measured at a constant output level but at current prices. in current dollars. as the difference between the current year's GDP and last year's GDP. in the prices of a base year.

in the prices of a base year.