Macro-Econ 16 & 17
How are interest rates set, according to the classical model?
by supply and demand
According to classical economists, the competitive interaction of markets kept the economy operating near __________.
full employment
If a set basket of goods costs $6,000 in the current year and $5,000 in the base year, what is the consumer price index?
120
Julie can bake 12 dozen cookies in an 8-hour day. What is her labor productivity?
18 cookies per hour
Which of the following is included in a country's infrastructure?
interstate highways
What is the greatest limitation of the classical model?
its focus on the long run
Labor productivity is the ratio of __________ to the __________ devoted to the production of that output.
output of goods; labor hours
Hyperinflation is typically caused by excessive government spending that is financed by:
printing money.
Roger worked in a coal mine until it went out of business because fewer people were using coal to heat their homes. Now he is unable to find a new job because he is not qualified for any of the jobs that are available. This is an example of:
structural unemployment.
June is a highly skilled surgeon who was forced to take a job as a lifeguard at a local pool because she was unable to find a job in the medical field during a recession. June is considered to be:
underemployed.
What is the formula for calculating CPI?
(cost in current period/cost in base period) x 100
What is the effect of a high capital-to-labor ratio?
Higher productivity since each worker has more tools at their disposal.
Jim has been out of work for over a year and has given up trying to get a new job until the economy gets better. Jim is considered to be:
a discouraged worker.
Which of the following is not a source of growth?
Increases in nominal money supply
In 2007 the inflation level was -.9%. This is an example of:
deflation.
What does a consumer price index of 130 mean?
Prices have increased by 130% from the base year to the current year.
In 2005 the inflation level was 5.6% and in 2006 the inflation level was 4.9%. This is an example of:
disinflation.
Which of the following is included in the PPI?
excise taxes
Which of the following would be protected by a copyright?
the invention of a machine
Which of the following would be protected by a patent?
the invention of a machine