ECON 202
When the labor market is at full employment ...
There is no cyclical unemployment in the economy
Frictional unemployment is the result of ...
people being in the process of moving from one job to another
In production possibilities frontier model, a point inside the frontier is ...
productively inefficient
Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called ...
structural unemployment
An example of an intermediate good would be ...
the rims on a new car
What is the equation for solving the labor force participation rate?
unemployment+employment/working-age population *100
What is the equation for solving unemployment rate?
unemployment/unemployment+employment *100
Seasonal unemployment is the result of ...
when goods and services are less popular at some point in a year
In the basic aggregate demand-aggregate supply model, a decrease in the price of oil will in the short run lead to ______________ in the UNEMPLOYMENT RATE and _________ in the price level.
A decrease; A decrease
PAE=
C(Y-T)+I+G+NX
Describe the accuracy of the Consumer Price Index
Changes in the CPI overstate the true value of inflation
What is the best measure of the standard of living?
Real GDP per capita
Recessions cause the unemployment rate to _______ and the inflation rate to typically ______.
Rise; fall.
Expansionary fiscal policy will ...
Shift the aggregate demand curve to the right
If an economy is growing at a rate of 2% per year, approximately how long will it take the economy to double in size?
35 years.
A compound tariff is calculated as ...
A combination of add valorem and specific tariff
___________ in taxes will decrease consumption spending and __________ in transfer payment will increase consumption spending.
An increase; an increase
What can an import tariff cause?
Decrease domestic consumption, increase domestic production, increase domestic prices, increase government revenue
What can an import Quota cause?
Decrease domestic consumption, increase domestic production, increase domestic prices, increase government revenue.
What is the correct equation that measures the GDP in an economy?
GDP=G+C+NX+I
If the point on the graph is to the left of the LRAS line the appropriate monetary policy by the Federal Reserve would be to ...
Lower interest rates
An increase in government purchase of $200 billion will shift the aggregate demand curve to the right by
More than $200 Billion
The quantity theory of money seeks to explain the connection between money and ...
Prices
Labor productivity will increase if the ________ increase and _________________.
Quantity of capital; technology improves
Cyclical unemployment is the result of ...
a slowdown in the economy
Technological advances in the economy would shift ...
both the short-run aggregate supply curve and the long-run aggregate supply curve to the right
What can an export subsidy cause?
increase domestic production, decrease domestic consumption, increase domestic prices, decrease government revenue
According to the quantity theory of money, deflation will occur if the ...
money supply grows at a slower rate than real GDP
