Econ test 3

Which of the following equations represents the labor force?

(unemployed + employed)

Unit-of-account costs of inflation are the:

costs associated with money being a less reliable unit of measurement.

In general, expansions are characterized by:

decreasing rates of unemployment

Transfer payments:

represent a redistribution of funds from one individual to another individual in the economy.

An economy's gross domestic product is made up of:

consumption, investment, government spending and net exports.

deflation:

will make you better off if your nominal wages fall more slowly than prices.

Your firm expands its output in a time when demand appears to be increasing. Demand for all goods is increasing because of inflation, and consumers want to buy all goods faster because their real purchasing power is falling due to inflation. This situation could indicate that:

your firm experienced a price confusion problem.

The labor force is equal to the:

sum of the employed and the unemployed.

In terms of inflation, the period from the mid-1980s until today in the United States is called the "Great Moderation." This refers to the fact that:

the double-digit inflation of the 1970s and 1980s has been replaced by well-controlled inflation of less than 10%.

Unemployment rates tend to:

vary depending upon age groups and ethnicities.