Macro
All of the following are examples of a final good or service except ____, it's an intermediate one. The purchase of a private jet United Airlines purchases a new Aircrafts printing paper newsprint bought by US today A textbook bought by a student
Printing paper newsprint bought by US today
Economic growth rate is the annual percentage change of_____.
Real GDP
Real GDP growth rate
Real GDP current year-Real GDP previous year/real GDP previous year x 100
Which of the following are included in the income approach to measuring GDP rent; wages; net exports of goods and services rent; wages; interest interest; net exports of goods and services; government expenditures on good services Wages; interest; consumption expenditures
Rent; wages; interest
All of the following are examples of consumption goods except____, it's in investment The purchase of a private jet United airlines purchase a new aircraft A textbook bought by a student A burger from top of the Hill greasy Burger's
United airlines purchases new Aircrafts
We are at " full unemployment" when_____.
When cyclical unemployment is zero
structural unemployment
unemployment that results because the number of jobs available in some labor markets is insufficient to provide a job for everyone who wants one
cyclical unemployment
unemployment that rises during economic downturns and falls when the economy improves
The unemployment rate in Europe countries tend to be higher than one in the US because___.
It's more difficult to be considered "unemployed" in the US then in Europe
When the Fed decrease his money supply,___
Aggregate demand shifts left
What is it called if GDP is increasing?
An expansion
The main difference between commercial Bank in a thrift institution, like a credit union, is _____.
Commercial banks are bigger and have larger loanable funds for bigger projects, while credit unions usually serve non-business customers
Megan transfers $11,000 from her checking account at the Aggieland credit Union to her money market fund. This means that M1 ____ and M2 ____
Decreases by 11,000; doesn't change
when the feds buy more and more bonds at the open market, the interest-rate___, and the peoples quantity of money demand___.
Decreases; increases
When the general price level goes up, people____more money so that they can afford the things they used to buy before the inflation.
Demand
Real gdp____.
Does not accurately measure leisure time, environment quality, or political freedom in social justice
The central proposition of the new growth Theory is that the economy____.
Does not experience diminishing output
With the spread of credit cards, debit cards, and E cash, people will want to hold less and less money. Eventually no one will want to hold any money inflation will not occur. Which of the following opinions is correct
Even if people do not hold money, prices will still be quoted in terms of money. So when the quantity of each cash or other electric money increases, prices will rise in inflation will occur.
Economic freedom as a precondition to economic growth
False
What is money called in the United States
Fiat money
US gross domestic product is the market value of all___produced___in a given time.
Final goods and services; with in the United States
How do you find labor productivity?
GDP/ Agregate demand
As the economy moves out of the recession in real GDP increases, the demand for money___. And to keep the interest-rate constant, the Fed will___the quantity of money
Increase; increased
A rise in net exports____.
Increases GDP
Which of the following is an example of deflation? inflation rate drops from 7% to 3% inflation rate stays the same over a year Infation rate drops to 0 inflation rate increases from -4% to -2%
Inflation rate increases from a -4% to -2%
The Fed uses its policy tools to ____.
Influence the interest-rate and regulate the amount of money circulated in the United States by adjusting the reserves of the banking system
Economic growth_____.
Is the sustained expansion of production possibilities
By increasing the required reserve ratio, the Fed force banks to hold a ______ quantity of money, and the interest rate ______.
Larger; rises
After the interest-rate changes from 6% to 7% a year, people want to hold___money so that they__ bonds
Less; buy
On the quantity of money graph, the interest rate could go up when one of these these two things happens:
Money demand it increases, or money supply decreases
How do you find the inflation rate?
New - old / old
Will currency disappear forever?
No, currency is used in underground economy were payments cannot be tracked
Is the economic freedom the same as democracy?
No. Economic freedom does not have to occur in a democracy
What is M2?
The definition of the money supply that equals M1 plus near monies M2 = M1 + savings deposits + small time deposits of less than $100,000
Opportunity cost of holding money is___.
The interest-rate four gone on an alternative asset
The feds policy tools include _____
The required reserve ratio, discount rate, and open market operations
Inflation is either caused by shift in AD____or AS_____
To the right; to the left
in the US today, money includes
coins in parking meters and the funds in the students cheking account
What is M1?
currency, travelers checks and checkable deposits
seasonal unemployment
unemployment that occurs as a result of harvest schedules or vacations, or when industries slow or shut down for a season
frictional unemployment
unemployment that occurs when people take time to find a job
