Macro Review Question
if an economy's GDP will double in 15 years, then its growth rate must be about
4.7%
if a country population increases at a slower rate than the growth in its real GDP
GDP per capita has increased
inflation is
general rise in prices
high family debt
reduces the tendency to consume
the classical form of the production function states that output is determined by
some function of available labor or capital
in general, the higher the capital to labor ratio
the higher the wages
the biggest group missing from the reported unemployment rate is
those working part time for economic reasons
what is your new salary if you earned $40,000 last year, the consumer price index went from 120 to 125 and your salary is adjusted by the rate of inflation annually
$41,666.67
There are 15 million people living in Marketstan, of whom 9 million are working and 1 million are actively looking for work. What is Marketstan's labor force?
10 million
the ___ shows the amount of output that firms are willing to produce at various price levels
aggregate supply curve
which of the following will not shift the aggregate supply cuve to the right
an increase in minimum wage
which of the following does not increase productivity
an increased money supply
which of the following factors will cause the aggregate demand curve to shift to the left
appreciation of the dollar
____ inflation occurs when a supply shock reduces aggregate supply
cost push
____ unemployment is the result of a change in the business cycle
cyclical
most economists agree ___ unemployment is the area in which public policymakers can have their greatest impact
cyclical
a shift in the aggregate ___ curve to the ___ would cause inflation to rise and employment to increase
demand, right
which of the following is not an example of infrastructure in the united states
desktop computers in the workplace
Workers who want to work but have been frustrated by the inability to find work and have stopped searching are known as
discouraged workers
which of the following statements is not correct
discouraged workers are considered underemployed
Which of the following statements is false
economic growth always leads to a more equitable distribution of income
For your purchasing power to stay the same, your wages must:
increase at the same rate as inflation
which one of the following would not lead to higher prices
increases in the supply of food
one reasonably objective measure on intangible infrastructure is the
index of economic freedom
the short run aggregate supply curve
is upward sloping because some costs are slow to rise as outputs expand
in the absence of copy right and patent laws
it is difficult for innovators to profit from their efforts
how many hours does a person have to work for pay to be counted as employed
one hour a week
when Main Street Banks buys new automatic teller machines, the quantity of ___ in the economy increases
physical capital
in the short run, the aggregate supply curve is
positively sloped
the consumer price index does not include
property taxes
infrastructure is defined as a country's
public capital
If a product becomes obsolete and the workers who produced that product will need additional training to find new jobs, then they are experiencing:
structural unemployment
Last year, the consumer price index (CPI) was 115 while the consumer price index for this year is 125. The rate of inflation is
8.7%
prices from about ___ goods and services are collected each month by the BLS data collectors to be used in calculating the consumer price index
80,000
Jordan Meadows lost his job as an airline pilot and has not been able to find another job as a pilot. Since he is old enough to be eligible for his pension, he decides to retire and devote himself to caring for his elderly parents. According to the Bureau of Labor Statistics, Jordan is:
NOT in the labor force
which statement about short run economic growth is not true
it is likely to occur when obstacles preventing resources from being used are put in place
according to the table, what is the labor force population - 500 employed - 300 unemployed - 50
labor force = 350
in the United States, our principal measure of inflation is
the consumer price index
in the united states, the census bureau computes the unemployment rate from
the current population survey
*Zach has been laid off from his job as an aircraft worker and is afraid that he will not be recalled. He has been actively looking for a job but has had no luck for the past six weeks. According the the Bureau of Labor Statistics, Zach is:
unemployed
growth rate in an economy is 3.5%, GDP will double in about
20 years